File Taxes Before Benefit Loss

Geoff Currier

If you still have clients who have yet to file their 2025 income tax returns, they may be cheating themselves. There are benefits which are being left on the table and that’s money they could use.

Despite your best efforts to encourage timely filing, there are always clients who delay. Here’s some information that may help motivate them to file. It’s also beneficial to keep returns efficiently moving through your office so clients can stay compliant, and you can complete the important work you do on their behalf.

What Benefits Can Clients Lose? If they have not filed, they will miss out on the one-time top-up of the Canada Groceries and Essentials Benefit (CGEB), formerly the GST/HST benefit. It is due on June 5. The first quarterly payment is due July 3. 

They also stand to lose out on the Canada Child Benefit (CCB)which is not paid out until the individual’s T1 for has been assessed. The same applies to the Guaranteed Income Supplement (GIS)

Both these payment amounts are reviewed each July and if the person has failed to file their 2025 tax return, those payments will be suspended. Once a return has been assessed, the payments may be made retroactively but in the meantime the family will be short of cash it needs. To restore benefits they must file their 2025 returns.

If your client is eligible for the Canada Workers Benefit (CWB) that payment will also be suspended. The same holds true for those eligible for Old Age Security payments (OAS).

It’s also critical to remind those clients who owe money that with each passing month they are losing more money with a 1% interest charge for each month their payment is overdue. This is on top of the 5% of the total amount owing if a return was not filed by April 30.

The Bottom Line: There are a few more important dates coming up including June 15 which is the tax filing deadline for self-employed or have a spouse or common-law partner who is self-employed. (Any taxes payable were due April 30)

It can’t be overstated the importance of the income tax return. For most of us it will be the most important financial document of the year. You may feel like you’re hounding your clients who have not “gotten around” to filing yet but it’s in everyone’s best interest to keep reminding them.

Be sure to check out Real Tax News with Evelyn Jacks and Friends wherever your find your favourite podcasts.