By the Lowertown Community Resource Centre
Annie, a resident of Lowertown, arrives at the Lowertown Community Resource Centre (LCRC) and meets Saidi, an intern from Collège La Cité’s social work program. Annie has come to have her 2023 tax return prepared and filed. She provides her tax slips and answers questions posed by Saidi, who will also verify her proof of identity. The information and documents will be passed on to trained volunteers, many with accounting backgrounds, who will complete the returns. One of them, Rémi, has been volunteering at our tax clinic since 2009!
At the LCRC, we’re proud to offer our tax clinic, a basic service that often goes far beyond simple tax preparation. For those living on modest incomes, filing a tax return can be much more than a formality – it’s often a crucial step towards a modicum of stability. It can also be a bridge to other services and programs offered by the centre, such as counseling, the food bank, or our youth programs.
Why is it so important for low-income earners to file their tax returns? The answer lies in the many benefits and rights they access by doing so. In addition to potentially receiving a tax refund, by filing their tax return, these individuals can benefit from tax credits and benefits for which they are eligible, such as the GST/HST Credit and the Guaranteed Income Supplement.
These refunds, credits, and benefits can make a significant difference in the daily lives of those living on limited incomes. Annie, for one, says that the money she receives will help pay her rent and her child’s daycare. Submitting tax returns allows low-income earners to stay in good standing with the Canada Revenue Agency (CRA) by avoiding penalties and accrued interest. And for many, it enables them to access community or subsidized housing. Beyond these tangible benefits, filing a tax return can also be a way for individuals to better understand their tax situation and plan their financial future more proactively.
The process of preparing tax returns can be daunting for some people, for example those filing for the first time. That’s where the LCRC comes in. Our team of trained, skilled, multilingual staff, volunteers, and interns are there to guide each resident through the process, offering personalized support. For Annie, it brings her relief and contentment to know that her declaration is well submitted.
In 2023, we completed 295 returns, enabling neighborhood residents to receive close to a million dollars in refunds, benefits, and rebates. We’ll be doing no less in 2024! And the cost of our clinic? Depending on how we calculate the time of our employees involved, it’s around $10,000. Now that’s an investment that pays off!
But for all the good that our tax clinic does, there is a better solution. It would be fairly easy for government to automatically produce income tax declarations for those with low-income levels and remove an unneeded burden from them. This would also allow organizations like ours to reallocate staff resources to other pressing issues.
In the interim, filing your taxes with the LCRC and other similar centres across Ottawa goes far beyond supporting a simple tax obligation – it’s an act of resilience and empowerment. At the LCRC, that’s what we’re all about.
The LCRC is accepting clients to its tax clinic up until April 22. After that date, or to have income tax declarations prepared for previous years, contact the EBO Financial Education Centre, https://www.centre-ebo.com.
