4 reasons your child should file a tax return
Do you have a child who has a summer job this year or who will be working part-time during the school year?
Even if your child doesn’t earn enough income to pay income tax, there are still benefits to filing a tax return — so you may want to let your child know about the following reasons.
1. Tax refund
If income tax is withheld from your child’s paycheque, let your child know that he or she can file a return to get a refund of the deducted amount.
2. RRSP contribution room
By filing a tax return now, your child will build RRSP contribution room that can be used in the future. Also, by filing a return your child will receive a notice of assessment showing TFSA contribution room, provided he or she is over 18.
3. GST/HST credit
If your child is over 18, he or she can file a tax return to qualify for the GST/ HST credit. Students may qualify for this quarterly payment even if they have no income to report.
4. Tax credits
By filing a return, your child can carry forward the unused portion of tuition fees, education, and textbook amounts for tax credits to be used the following year. Or the amounts can be transferred to an eligible family member — including you — to claim on his or her tax return.