June 17, 2022

Bill C-8 and Tax Returns

This is an update regarding federal Bill C-8, which implemented some tax measures contained in the last fiscal update tabled in Parliament in December, including a change to the existing educator school supply tax credit. Under Bill C-8, the rate of refund for this tax credit increased from 15 per cent to 25 per cent.

Bill C-8 has finally been adopted and received Royal Assent last week. This is welcome news for ETFO members, especially those who were experiencing delays by the Canada Revenue Agency (CRA) in processing their returns; they should now begin to see their Notice of Assessment issued and receive refunds if applicable.

The Canadian Teachers Federation (CTF) has been following this issue closely and was in constant communication with the CRA and with the federal government regarding their handling of this issue. Due to the delay in the passing of the legislation, the CRA decided to hold the processing of tax returns of educators who claimed this tax credit until the bill received Royal Assent. This resulted in many educators experiencing delays in their tax returns and as consequence delays in receiving tax refunds. Now that the bill has received Royal Assent the CRA will process the returns that were held up.

The Eligible Educator Tax Credit allows educators to claim up to $1,000 of eligible teaching supplies at a rate of 25 per cent.

Members who have questions should follow up directly with the CRA.