February 17, 2026
Summary: Volunteers should start any interview with a client by explaining what they are doing and why: the income tax and benefit return confirms for the government the amount of income the client received during the past year, whether there is any income tax still to be paid, and the benefits the client may be entitled to receive in the coming 12 month cycle (July to June of the next year) as a result of filing their return.
To ensure the volunteer has correctly included all the client’s income for the tax year as well as the refundable and non-refundable tax credits they wish to claim, it is essential for the volunteer to review this information with the client before filing the return. The article identifies three ways the volunteer can show this information to the client in UFile. The figures for total income, net income, taxable income, federal non-refundable tax credits and refund or balance owing should all be explained. The volunteer should also explain that after filing the return, the Canada Revenue Agency (CRA) will issue a Notice of Assessment (NoA) reconfirming the income, credits and deductions, and the tax owing or refund to be paid.
The volunteer should stress the importance of keeping the NoA as the client may be asked to provide the Net Income (line 23600) from the NoA when applying for other income support programs. In many provincial jurisdictions, households living in housing with subsidized rent may also need to provide copies of NoAs for all household members to maintain their rent subsidy for the next period.
To ensure the volunteer has correctly claimed all the benefits the client may be entitled to, it is essential to review the benefits and the schedules of payments while emphasizing that these are only estimates. The article identifies three ways the volunteer can show this information to the client in UFile. The client should be informed that the CRA will issue notices confirming the amounts of benefits and the payment dates after the NoA has been issued, and that it is useful to keep these notices to be able to track the payments. Finally, if the client owes the government money, they should be forewarned that the CRA may withhold some of their benefits to pay down the client’s debt.
In the first article of this two-part series, I discussed What the CVITP Volunteer Needs To Know About The Tax Return. In this article, my focus is on what CVITP volunteers need to ensure their clients know about their tax returns.
Just as with many middle and high-income clients, the way the income tax and benefit return process works is largely a mystery to many low-income clients. They may know they need to file a return to maintain their benefits. But they are unaware of many of the credits they can claim and often overwhelmed by the details, especially if they are uncomfortable with numbers.
Explaining the purpose
At the outset of any interview with the client, it is always useful to explain the purpose of the exercise: to prepare a return which confirms the amount of income the client received during the past year, whether there is any income tax still to be paid, and the benefits the client may be entitled to receive in the coming 12 month cycle (July to June of the next year) as a result of filing their return. To some clients, all of this will be obvious. Newcomers, in particular, are unlikely to be fully aware of the purpose.
When a CVITP volunteer prepares a return, they have an obligation to ensure their client understands enough about their return tp provide the volunteer with provide informed consent.
The Canada Revenue Agency (CRA) wants all CVITP clients to understand that the CVITP volunteer is NOT an agent of the CRA. This is to avoid any confusion in the mind of the client, especially if the volunteer makes a mistake: the client cannot claim that a CRA agent prepared their return and is responsible for errors. This is one of the purposes of having the client sign the TIS60.
The other purpose of the TIS60 is for the client to confirm that the income cited in their return comprises all the income they received in the tax year. This is important because, for the CRA, the return itself is primarily about income and tax, and only secondarily about benefits.
Reviewing the T1 General and the Notice of Assessment
During the interview, the volunteer collects various pieces of information about the client’s income and the expenses they may wish to claim for various refundable and non-refundable tax credits. Non-refundable tax credits can be used to reduce their income tax. Refundable credits can increase their refund.
After filing the return, all this information will be reflected in the Notice of Assessment (NoA).
So, to ensure the volunteer has correctly included all the client’s income for the tax year as well as the refundable and non-refundable tax credits they wish to claim, it is essential for the volunteer to review this information with the client before filing the return.
There are many ways to do this using the UFile software:
- Open Tab 3 and go to the page entitled “Federal Summary”. This gives a clear breakdown of what is likely to appear in the NoA.
- Open Tab 4 and go to the page entitled “Executive Summary”. The middle section of this page gives a very brief overview of what is likely to appear in the NoA.
- Open Tab 4 and go to the page entitled “Tax Return Summary”. This gives a very detailed description of what is likely to appear in the NoA.
Explain the following items in the return to the client:
- Total Income (line 15000): This is made up of all the income the client is declaring.
- Net Income (line 23600): This excludes certain elements like Employment Insurance premiums and Canada Pension Plan contributions paid by the client. This figure is also important as it is used by many income support programs to determine the client’s eligibility as well as the size of any benefit amount to be paid.
- Taxable Income (line 26000): This excludes all social assistance payments. As a result, the taxable income of many CVITP clients may be zero.
- Federal Non-refundable Tax Credits (line 35000): These are credits used to reduce taxable income. If the client’s taxable income is already zero, they should understand that these credits will not be paid to them. The volunteer may also wish to point out that the Basic Personal Amount (line 30000) represents the maximum amount of taxable income the client could have earned in that tax year without paying any income tax.
- Refund or Balance Owing (line 48400): This confirms if the client will receive a refund or owe tax for the last tax year. Where there is tax owing, the client needs to understand how this figure was arrived at. Whether there is money owing or a refund, the figure may need to be broken down so the client can understand how the final figure was arrived at. The final figure may include federal and/or provincial/territorial income tax. It may also include federal and/or provincial/territorial refundable credits. It should be pointed out to the client that the figure in their CRA NoA may differ, especially if they owe income tax from prior years.
Then explain what happens after the return has been filed:
- The CRA will issue their NoA in approximately two weeks. (For returns filed on paper, it will take much longer.)
- If there is a refund, it will be deposited to their bank account around the same time (or a cheque will be issued if the individual has not yet set up direct deposit with the CRA).
- If there is a balance owing, the individual should wait until they receive the NoA confirming the amount owing. They can then pay this online through their bank, pay in person at their bank, or mail a cheque to the CRA.
The volunteer may wish to stress that it is very important for the client to keep their NoA as they may be asked to provide the Net Income (line 23600) from the NoA when applying for other income support programs. In many provincial jurisdictions, households living in housing with subsidized rent may also need to provide copies of NoAs for all household members to maintain their rent subsidy for the next period.
Reviewing Schedules and Benefit Notices
The second part of the return uses information from the T1 General to arrive at estimates of the various benefits to which the client may be entitled as well as the general schedule of payments for these benefits.
The volunteer should review each of these benefits with the client to ensure that they have not missed claiming any of them.
There are many ways to do this using Tab 4 of the UFile software:
- Go to the page entitled “Executive Summary”. The bottom section of this page gives a very brief overview of the many benefits the client may be receiving.
- Go to the page entitled “Tax Return Summary”. The section entitled “Additional Information” gives a very brief overview, like the Executive Summary.
- Look at the relevant Schedules or, better yet, go to the related Benefits listed below the Schedules as these give estimates as well as general payment schedules.
Explain each of the benefits in the return the client may be entitled to receive. This includes pointing out the estimates and the payment schedules. The volunteer should stress that these are estimates only. Clients who have previously received benefits will know more or less what they should be receiving in the forthcoming 12-month cycle. So, this is often a good way of double-checking that the return has been properly prepared.
Then, explain what happens after the return has been filed: the CRA (or other relevant agency, like Service Canada) will issue notices confirming the amounts of benefits and the payment dates some weeks after the return has been filed and the NoA has been issued.
The volunteer may wish to note that it is useful for the client to keep these various notices, to be able to track the various payments being received from the CRA and other agencies. In the event the client owes money to the CRA or another government institution, the client should be forewarned that the CRA may withhold some of these benefits to reduce the client’s debt.
Conclusion
The volunteer should be prepared to answer any questions the client may have about their NoA or their benefit estimates before seeking permission to file the client’s return.
Many volunteers may feel pressure to complete the return and file it rapidly as there are so many other clients waiting to be assisted. However, volunteers have a duty to ensure their clients understand the work being done for them. After all, it is the clients – not the volunteer – who will have to deal with the CRA if there are any mistakes in the return. Equally, clients will appreciate the excellent service volunteers are offering them.