Tax return delays expected for teachers who applied for new credit

Teachers who took advantage of a new federal tax credit that helps cover the cost of school supplies are being warned of delays in their tax returns as the bill moves through Parliament.

The Canada Revenue Agency (CRA) says it cannot process the school supply tax credit for eligible educators because Bill C-8 has not yet received royal assent, although that it was filed in December 2021.

“If royal assent is obtained, notices of assessment will be issued to those affected,” a CRA spokesperson said in a statement emailed to CTVNews.ca on Friday.

Bill C-8 has been moving slowly through the House of Commons since it was introduced following the fall fiscal update. It is currently at report stage, which means it still has at least one vote and some debate time before it can go to the Senate for a second round of legislative consideration.

But teachers are not the only ones whose tax returns are affected by the legislative delay. According to the CRA, Canadians hoping to take advantage of the tax credit for returning the proceeds charged on fuels to farmers will also experience a delay in receiving their tax returns.

As of April 18, the CRA said about 70,000 returns were withheld due to one or more of the tax credits.

“When it became apparent that the enabling legislation would not be enacted in time for the start of tax season, the CRA notified tax software developers as well as tax preparers, and clarified that it was up to the taxpayer whether or not to claim the tax credit given the potential for delay,” the CRA spokesperson said.

For those who could have taken advantage of either of the new tax credits on their 2021 return but didn’t, the CRA says they don’t have to wait until next season. filing of income tax returns to submit a request for reassessment.

Changes to a tax return can be submitted electronically, through Amend My Return or Resubmit, or by mailing a completed Form T1-ADJ, T1 Adjustment Request, along with supporting documentation, to said the CRA. Any changes will be processed and returned once Bill C-8 receives Royal Assent.