Should Your Teen File A Tax Return?
By Nancy Brooker, C.A.

If your teen is not filing a tax return, he could be missing out. Here are some reasons you might just want to get that return filed . . .

1. It is likely that tax is being deducted from his paycheque. Depending on his circumstances, he may have paid too much and be due a refund if he files a return. The opposite could also be true, he could owe tax if he made more than about $10,500. T4s (employment slips) are filed with Canada Revenue Agency and run through a SIN # matching program. If he owes money, you’ll likely hear from them (penalties and interest could apply – ouch!). If a refund is due ... not so likely you’ll hear from them.
2. Is your 19 year old getting his GST/HST tax credit? To apply, he must file a tax return. If he’s already turned 19, you may need to file a T1 adjustment for the 2010 taxation year or write to your taxation centre requesting to apply. The amount of GST/HST credit is income driven, so our poor students will generally qualify. This is tax free money meant to helps individuals and families with low or modest incomes offset all or part of the GST/HST that they pay.
3. Is he paying rent? Ontario has the Ontario Energy and Property Tax Credit offering up to $900 (2010) to help with the sales tax you pay on energy and the property taxes you paid. To qualify, you must be 18 years of age or older, and have paid rent or property taxes for a principal residence in Ontario.
4. Is your child attending College or University? Tuition, education and textbook credits can be transferred from a child to parent or grandparent, but only if the child files his tax return! This could mean big savings for you! Of course, you were the one who worked so hard to pay for his education in the first place!
5. By filing a tax return, he starts building his RRSP room now.
6. It might be easier to learn about tax forms now, when their taxes are perhaps less complicated, and it teaches them financial responsibility.

More money in your child’s pocket means more money in yours!