Primary and junior high school teacher Kaisa Hansen said she relied on her expected $ 12,467 tax refund to pay upcoming bills, such as a new battery for her motorized wheelchair.
But now the Calgary resident believes she will have to accumulate these fees on her credit card. This is because her refund has been withheld due to a tax credit she requested, which, as it turns out, has not yet been approved.
“It makes me angry and frustrated,” said Hansen, who has a genetic disorder that affects her mobility.
“Why is [the credit] there as something I can claim, if I can’t actually claim it? “she said.” There was no warning. “
The Canadian Revenue Agency (CRA) has withheld approximately 50,000 tax returns from teachers, the agency told CBC News, all because of a tax credit they asked for for textbooks purchased for their students.
In what is known as an eligible school supply tax credit, the federal government has increased the maximum number teachers can claim from $ 150 to $ 250. The problem is that the increase is included in the new legislation (Bill C-8), which is yet to be adopted by parliament.
Until the bill becomes law, any teacher who has applied for a loan will not receive their tax return.
“It’s not just the tax credit, but the whole process of every other refund they have is now slowing down because their refunds are being set aside. And that’s just not right, “said Sam Hammond, president of the Canadian Teachers’ Federation. “Some of them need that money.”
Chelsea Thurcott Elementary School teacher in Edmonton hoped to use part of the expected $ 4061 tax refund to pay for the recent jump in her utility bill – until she learned her refund had been delayed. (Chelsea Thurcott)
Chelsea Thurcott primary school teacher in Edmonton hoped to use part of the expected $ 4061 tax refund to cover the jump in her utility costs. But when she learned that her return was unknown, she had to make other plans.
“I had to ask my mother for a loan,” Thurcott said, almost in tears. “It just breaks my heart to take this step, but this is where it is right now.”
The teachers did not understand the message
Tax specialist Armando Minicucci said teachers could avoid the delay by filing their taxes without asking for the loan right now.
“You have up to ten years to change your tax return, so there’s plenty of time,” said Grant Thornton’s Minicuchi in Toronto.
But this plan only works if you know about the problem in advance. CBC News interviewed five teachers, each of whom filed their own taxes in February or March, and said they had no idea at the time that there was a problem with the school supply loan.
“If we had been told there would be a delay, I wouldn’t have bothered to file it,” said Hansen, whose loan receivable was just $ 68.
The CRA told CBC News that since February 18, when it became clear that the legislation would not be passed in time for the start of the tax filing season, it had sent notices to tax compilers and developers of tax software, and published tax notices online.
The CRA did not mention signaling to taxpayers.
CBC News found a signal published on government website credit description. However, according to An search internet archivesthe message was added somewhere on or after April 9th.
“Big enough deal to cause some stress”
Hansen said she only found out about the problem after calling the CRA a few weeks ago to find out about her recovery.
Catherine Olson, a primary school teacher in Winnipeg, said she understood why her expected $ 1087 tax refund had been delayed thanks to a social media post by another teacher.
“I really, really want to know that this is going to be a problem,” said Olson, a first-year teacher who is still paying off student debt.
“It’s really hard as someone who’s just starting out as a financially independent person. For example, $ 1,000 … that’s a big enough deal to cause some stress.”
“Unfortunately, they can’t do anything right now.”
Minicuchi said teachers who have already submitted documents cannot resubmit their return until they receive their tax assessment from the CRA.
“Unfortunately, they can do nothing but hope that the legislation will receive royal approval soon.
Bill C-8 was introduced in parliament in mid-December and has not yet passed the third reading in the House of Commons. If and when it does, it must still be passed in the Senate.
The office of National Revenue Minister Diane Lebutilier said the official opposition was to blame for the detention.
“Conservative MPs are playing political games with this bill to delay its enactment,” spokesman Chris Macmillan told CBC News.
Sam Hammond, president of the Canadian Teachers’ Federation, says holding back teacher reimbursements is unfair because some of them need the money now. (Michael Wilson / CBC)
Conservatives dispute the claim.
“Conservatives oppose Bill C-8 because it implements part of the Trudeau government’s 2021 budget, which included excessive borrowing and spending,” financial critic Ed Fast said in an email.
“It’s not about political games; it is the official opposition, which is doing its job of reviewing the legislation, and it is up to the government to decide when it wants to vote on the legislation.
Instead of pointing the finger, teachers hope both sides can work together to find a solution so they can quickly recover their money.
“I just want them to do their job,” Hansen said. “I went to work every day. I did my job, so I’d like to take my money.”
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