By Janelle Brooks, TurboTax Canada Tax Expert
Each year your tax return is used by the Canada Revenue Agency (CRA) to calculate your benefits, like Canada Child Benefits (CCB) and the GST/HST credit.
To support Canadians during Covid-19, in July 2020, the CRA had extended the payment of benefits to Canadians that had not yet filed their 2019 tax return. This extension applied to the benefit payments for July, August and September of 2020.
For those Canadians that had not filed their 2019 tax return, these estimated payments were still based on the 2018 tax year. In order for payments to continue past this extension, your 2019 tax return will need to be filed with the CRA, by early September 2020.
By filing your 2019 Tax Return, by early September 2020:
- you will continue to receive your eligible benefit payment(s), and
- the CRA will use your 2019 tax return to calculate your actual benefit amount for the July 2020 – June 2021 benefit year
- there may be an adjustment of future payments due to the estimated payments that were already paid out
If you do not file your 2019 Tax Return, by early September 2020:
- your benefit payment(s) may stop, after your September payment, until your tax return is filed and assessed, and
- you may have to repay the estimated payment(s) you received in July, August and September of 2020.
Did you know that many benefits are based on family net income? This means if you have a spouse, or common-law partner, both of your returns need to be filed, in order for the CRA to accurately calculate the benefit payments.
The CRA has given Canadians an additional payment deadline extension. There will be no late filing penalties and interest charges for 2019 tax returns that are filed and the balance owing is paid before September 30th, 2020.
For more details on income support and other benefits as part of the Federal Government’s Economic Response Plan for COVID-19, click here.
See also our COVID-19: Tax Info Centre, from our TurboTax Support team, answering many FAQs on this topic and more.
With more than 20 years’ experience helping Canadians file their taxes confidently and get all the money they deserve, TurboTax products, including TurboTax Free, are available at www.turbotax.ca.