Filing taxes can be path out of poverty
The issues surrounding poverty, homelessness and food insecurity in Canada are incredibly complex, but one thing is clear: As cost-ofliving pressures increase, more Canadians are struggling financially to keep their heads above water.
There are some shocking statistics about how Canadians are financially faring in these uncertain economic times. According to Statistics Canada, one-in-10 Canadians live below the low-income cutoff. It has been widely reported that record levels of Canadians were forced to rely on food banks and shelters in 2023.
The Homeless Hub estimates that between 150,000 and 300,000 Canadians experienced homelessness, a number that is expected to grow significantly through 2030.
While I know the solution to the issue of poverty in Canada is complicated, multi-faceted, and not my area of expertise, I also know firsthand that filing taxes can be a critical first step out of poverty for thousands of people each year.
Some may be surprised to hear that, but filing your annual income tax return is actually a requirement in order to access critical government support programs throughout the year.
I started my career with H&R Block as a tax professional and have seen the lasting impact of filing taxes for many of our clients. One client story that will forever stay with me though, is a return our team did for a gentleman just last year through our Returning Hope program. This gentleman faced more challenges than anyone should have to encounter in a lifetime, including a courageous battle with a substance use disorder. I will refer to him as John to preserve his anonymity.
Through the single act of filing his taxes, John was able to find some stability. For him, filing his taxes meant so much more than putting money back into his pocket; it helped him secure affordable housing and gave him access to fundamental government supports to help him through his recovery. Assisting people like John, who after many years, finally found a place to call home, is why we are so passionate about supporting all Canadians in filing their taxes, regardless of their circumstance.
Every year, tens of thousands of Canadians miss out on access to critical tax credits, year-round government benefits and affordable housing programs because they struggle to file their taxes. Many Canadians are not aware that even if you have limited or no income, filing taxes provides access to essential federal and provincial government tax credits and programs. This includes the GST/HST credit, Employment Insurance, the Canada Child Benefit, the Canada Carbon Rebate, disability tax credits, the Canada Workers Benefit, affordable housing and more.
For many vulnerable Canadians, it can be challenging to file their taxes for many reasons such as not having a fixed address, access to a computer, or the necessary documentation. But these challenges are not insurmountable; people just need the right support.
Between broad layoffs and the rising cost of living, the need for support in filing taxes has increased in 2024. In 2024, H&R Block marked its eighth year of Returning Hope, a program that supports thousands of vulnerable Canadians with free tax filing clinics in partnership with local community support centres in 20 cities across Canada.
This year, we surpassed $4 million returned to vulnerable Canadians in missed tax refunds, credits and benefits for community members across the country who need us most. Imagine the difference that amount of money can make.
Knowing how to make a difference for individuals is not easy, but for us at H&R Block, we have seen firsthand that filing taxes can and does change lives for the better.