Tax Relief for Low-Income Tax Filers

Tax Relief for Low-Income Tax Filers

April 28, 2020

With a low income, you could qualify for tax relief for low-income tax filers. There are some helpful tax benefits and credits from the CRA. And, there are helpful credits through the province or territory where you live, too.

Canada Workers Benefit (formerly the Federal Working Income Tax Benefit)

The Canada Workers Benefit (CWB) encourages low-income earners to keep working. So, to claim CWB, earn $3,000 or more from your job or self-employment. Then, the amount of the credit varies with your income.

Once you qualify, first, claim this refundable credit at the end of the tax year on your return. Also, you can apply to get advance payments throughout the year. Secondly, if the CRA has an approved disability certificate from your doctor, claim the disability supplement with just $1,500 of working income.

The Canada Workers Benefit is a new, enhanced version of the federal Working Income Tax Benefit, starting in 2019. CWB has expressly been made more accessible than the WITB.

GST/HST Tax Credit

To offset some of the sales tax you pay all year, the GST/HST credit pays quarterly to low-income families. And, there is no application process. When you file your income tax return online with CloudTax, the CRA automatically sees if you qualify.

Provincial and Territorial Credits

Several territorial and provincial benefits and credits help low-income families. These are based on your province/territory of residence.  CloudTax makes them available automatically. Usually, you apply for benefits and credits on your federal and provincial or territorial income tax returns. So, to make sure you don’t miss anything, use CloudTax tax preparation software.

  • In Alberta, working parents receive the Alberta Family Employment Tax Credit.
  • In Ontario, low-income workers, get personal income tax relief through Low-income Individuals and Families Tax Credits. This non-refundable tax credit provides up to $850 annually for Ontario workers. This includes those who earn minimum wage It reduces or eliminates the provincial personal income tax, excluding the Ontario Health Premium.
    • To qualify:
      • Canadian resident in any province/territory at the start of the tax year
      • Ontario resident by the end of the year
      • Earn some employment income
      • Owe Ontario personal income tax
      • Net income below $38,500
      • Family net income below $68,500
      • Not more than six months in prison

Other credits are available in other provinces/territories for tax relief for low-income tax filers. So, use CloudTax to complete your tax return so you don’t miss any credits or benefits you are due.

Nimalan Balachandran is the Founder & CEO of CloudTax, an income tax filing platform, certified by the Canada Revenue Agency, that allows simple tax filers to file their taxes from home. He was a former employee at the Canada Revenue Agency, and has been in the tax preparation industry for over 10 years. His goal was to bring his passion for technology and assisting Canadians in minimizing their taxes together, by building new software that allows Canadian residents to file simple taxes on their own. Along with his background in accounting, finance, artificial intelligence & business strategy from Seneca College and Massachusetts Institute of Technology, Nimalan has also worked as a Financial Advisor at Sun Life Financials. Nimalan also co-founded a not-for-profit organization, ATI Foundation, serving individuals with intellectual and physical disabilities in the Greater Toronto Area.


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