This Calgary tax clinic helps people file their taxes. It now has more funding

Ottawa is increasing the funds it's putting toward free tax clinics, something staff at a Calgary non-profit say can make a financial difference in people's lives.

Last week the federal government announced it would be increasing funding for free tax clinics, which help Canadians access the tax credits and other financial benefits they are entitled to.

Immigrant Services Calgary, which helped 1,000 new immigrants file their taxes this year, receives that funding.

Shagufta Jabeen, a settlement and integration counsellor who helps people with taxes at the non-profit, said she's excited about the funding boost, as she sees first-hand the difference helping people with their taxes can make.

She said many people coming to the centre aren't aware of taxes or are worried they're going to end up on the hook for a lot of money.

WATCH l Tax returns are tricky, especially when you've never filed one in Canada:

"Especially for low income families when they come to us and they don't have knowledge about the benefits and resources … Especially the refund, when they get it like $3,000, $4,000, $5000 sometimes, right? It's very exciting for them," Jabeen said.

In 2022 alone, returns processed by the Immigrant Services Calgary tax clinic totalled more than $260,000.

Studies say as many as 12 per cent of Canadians don't file their taxes every year, most of whom are low-income Canadians. It's estimated that non-filers missed out on more than $1.7 billion worth of government rebates and programs they were entitled to in the 2015 tax year alone.

Anil Waiba, a chef in Calgary who recently immigrated and is originally from Nepal, initially went to an accountant to have his taxes done, but they weren't completed.

He didn't know he had money coming back to him until he went to Immigrant Services Calgary and they did it for free.

"I [got] more information about HST, GST and climate change incentive as well."

But even with free tax clinics, completing that paperwork in the first place can be a barrier for some.

That's why Antoine Genest-Grégoire, professor at Carleton University, said tax returns, and the credits and refunds that go with them, could just be automatic.

"If their situation is fairly simple, the CRA probably already has most of the information it needs to file for those people," he said.

"There's probably a lot to gain for them if we did so."

Ottawa said it would be piloting a new automatic filing service for even more low-income Canadians, including many who would be entitled to government benefit programs like GST rebates and the Canada Child Benefit were they to file.