The CRA Still Requires Filing, Even When Income Is Low
Think You Don’t Need to File Taxes Because You Made Little or Nothing This Year? Think Again.
A surprising number of Canadians believe that if they made very little income (or none at all) they’re off the hook when tax season comes around. It feels intuitive: if you didn’t earn money, why would you need to file? But this assumption ends up costing people more than they realize. In Canada, filing your tax return is about far more than reporting income. It’s about unlocking benefits, credits, and government payments that are only accessible when a current tax return is on file. And for many low-income individuals, those benefits can add up to thousands of dollars over the course of a year.
Starting in 2026, the Canadian government will begin pre-filing tax returns for millions of low-income Canadians. It’s a major shift aimed at making tax filing more accessible, especially for those who struggle to navigate the system. But this new program doesn’t mean you can stop filing. Even though the CRA may prepare part of your return, you will still need to review it, confirm the information, update anything that’s missing, and submit it before any credits or benefits are paid out. Filing will still be essential, and ignoring it could mean missing out on money that you’re legally entitled to receive.
The Tax Filing Mistake That Costs Canadians Real Money
At M7 Group, we’ve seen firsthand how often Canadians lose refunds simply because they assumed they didn’t earn enough income to justify filing. Every year, people walk away from GST credits, carbon rebates, provincial benefits, and workers’ credits that were meant to help them. All of these programs depend on having an updated tax return in the CRA’s system. Without it, you simply don’t exist for benefit purposes. And that’s why filing (even with zero income) is not optional if you want to receive the payments designed to support you.
Even if you didn’t work last year, the GST/HST credit and the Climate Action Incentive alone can provide meaningful financial relief. Many Canadians also qualify for the Canada Workers Benefit, the Ontario Trillium Benefit, and other provincial and federal supports that are automatically calculated once your return is processed. These programs don’t require you to owe tax; they simply require you to file. The tax return becomes the government’s way of confirming your identity, your residency, and your eligibility for payments, nothing more complicated than that.
Why CRA’s New Pre-Filing System Still Requires You to File Every Year
And with the CRA’s new pre-filing initiative rolling out starting in 2026, it becomes even more important to stay active in the filing system. The government may prepare a draft return based on available information, but it won’t capture everything. Missing banking details, unreported rent information, medical expenses, tuition credits, RRSP contributions, childcare deductions, or anything else that could increase your benefits or reduce future taxes will not magically appear in a pre-filled draft. You will still need to review it, correct it, and submit it to ensure you receive the full benefits.
Filing your taxes in Canada is simpler than most people think, but it does require a few essential documents. Whether you had employment income, investment income, or no income at all, keeping track of your T4s, T5s, RRSP receipts, rent information, tuition slips, medical receipts, and banking details ensures that your filing is accurate and complete. Once you create or log into your CRA MyAccount, you can use a certified NETFILE tax software (many of which are free) to complete the return. The process takes minutes, and your refund or benefits usually deposit into your bank account within days. The biggest mistake people make is not filing at all, believing their income was too insignificant to matter. But tax filing is how you claim your benefits. Without that return, the CRA won’t release them.
Every year, thousands of Canadians also run into issues because they forget to update their banking information with the CRA, fail to report dependents, overlook eligible expenses, or ignore CRA notices that request clarification. Small oversights like these can delay refunds, reduce benefits, or cause unnecessary stress. Filing a clean, accurate return—on time—ensures everything flows smoothly for the entire year.
Why Canadians Trust M7 Group to Protect Their Benefits
This is where M7 Group makes a critical difference. We understand the nuances of Canadian tax law and the benefit system, and our team ensures that nothing is missed. We review your documents at no cost, file your return accurately, identify credits and deductions you may not have known you qualified for, and stand behind your return with audit protection in case the CRA has questions. Our goal is simple: to make sure your benefits stay intact and your money stays in your pocket.
Your tax return is more than paperwork. It’s access. It’s eligibility. It’s protection. Filing every single year—whether you earned a little, a lot, or nothing at all—is the simplest way to secure the benefits you deserve and ensure that the CRA sees you as an active, eligible taxpayer. Don’t leave money unclaimed, and don’t assume your income is too small to matter. The truth is, filing is the only way to keep your financial support flowing.
If you need help, if you’ve skipped filings in the past, or if you want someone to take care of the entire process for you, M7 Group is here to guide you. Filing your taxes is one of the easiest ways to protect your financial well-being—and you don’t have to do it alone.
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