Step 4 - Registered Disability Savings Plan

Here is how you can file your income tax returns

For the government to know the correct amount of RDSP grants and bonds you can receive, you need to file your income taxes every year.

If you have never filed income taxes or have missed a few years

File your tax returns for all years that you were eligible for the Disability Tax Credit. The government bases the current year’s grants and bonds on your family income from two years ago. If you have been eligible for the Disability Tax Credit for the past 10 years, file your returns for each of those years. This will ensure you receive the correct amounts of grants and bonds for each year.

There are three ways to file income taxes:

1. File your own taxes online

NETFILE is an electronic tax-filing service. It sends your tax return directly to the Canada Revenue Agency (CRA). You must use a NETFILE-certified software product to prepare your return. You will find a list of certified software products at canada.ca/netfile-software. Some of the software is free.

This method is safe, accurate, and faster than doing taxes by hand and mailing them in. Tax refunds are issued faster as well. If you have set up direct deposit, in can take as little as 8 business days. You do not have to send in your receipts, but you must keep them with your records. The CRA may ask for them later.

You will get immediate confirmation that the CRA has received your tax return.

2. File your own taxes by mail

If you do not have access to a computer, or prefer using paper, you can fill out your return by hand and mail it in. There is also the option to telephone your return in using telefile, as long as you are not a first-time tax filer.

You will need the General Income Tax and Benefit Return for each year you are filing. You can:

• get the income tax return package online or
• Request it by phoning 1-855-330-3305 toll-free or
• Go to any post office or Service Canada office and ask for it.

Ask for a tax package for the province you lived in last December. If you are filing for previous years, be sure to get the tax package for the province or territory you lived in.

Fill out the forms and attach all the information slips, receipts, and other supporting documents you need.

Canada Revenue Agency (CRA) will review your file and may ask you some follow-up questions. Keep a copy of your return and any letter you receive from CRA in a special place for next year.

3. Get a professional to help you

Taxes can be complicated, but doing it right is important. It could get you more money back!

You may have a complicated tax situation. For instance, you may own property, or get money from several different sources, or have significant medical expenses. Or you may just feel overwhelmed by all the forms. In that case you might want to get professional help.

If you can afford a professional accountant, look for one who understands disability tax issues.

If you need help but are on a low income:

• The Community Volunteer Income Tax Program will help people who have low incomes for free. For the location closest to you:
  Call 1-800-959-8281 toll-free or
  Visit https://www.canada.ca/en/revenue-agency/campaigns/free-tax-help.
• You can get help from Disability Alliance B.C. at Tax AID DABC.
• You can go to a walk-in tax clinic. While the staff are not usually accountants, the service can be less costly.

The British Columbia Aboriginal Network on Disability helps indigenous people living with disabilities who are eligible to open an RDSP.

Plan Institute has more information on the Disability Tax Credit and filing taxes. Call the toll-free Disability Planning Helpline at 1-844-311-7526 or email info@rdsp.com.

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Tip: File your taxes every year

You should file your taxes every year to receive the Canada Disability Savings Bond. You are not eligible for the bond without filing your taxes. You can still get the grant, but without your income information from your tax return, you will be considered ‘high income’. That means you will only be eligible for 1-1-dollar matching.