Lesson plan: After sending us your tax return – Learn about your taxes

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Learn about your taxes

Lesson plan: After sending us your tax return

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Overview

This lesson will help students learn what to expect after filing an income tax and benefit return, from understanding their assessment to interacting with the Canada Revenue Agency (CRA). Students will be able to test their knowledge through quizzes and practical examples.

The core question is:

  • What do you need to know after you’ve done your taxes?

Learning objective: Students will develop an understanding of what happens once they have filed a tax return. As a result, they will be more familiar with the documents they receive from the CRA and situations in which they may need to contact the CRA.

Skills to develop

  • Describe the information included in their notice of assessment and the importance of this document
  • Explain when and how they can expect to receive a refund
  • Explain why they might have a balance owing
  • Identify the different payment options available
  • Describe what a reassessment is and when they can request one
  • Identify the different ways they can change their tax return after they have filed it

Background information

One of the most common taxes we pay in Canada is income tax. To make sure that each individual pays the correct amount, individuals fill out a tax return every year to report their income and to claim the tax credits they’re entitled to. They use the tax return to calculate if they’re entitled to a refund, have a balance owing, or have a zero balance result.

Filing a tax return is often the first interaction most people have with the CRA. However, it’s usually not the last. It’s important to know what to expect after you do your taxes so you can be prepared to take action, if necessary.

Learning and activities

Required materials step 1

Warm-up exercises step 2

First exercise

Step 1: Explain to students that individuals in Canada file a tax return every year to report their income and to claim the tax credits they’re entitled to. This is usually a straightforward process. After the CRA processes a return, it sends confirmation that the return has been assessed.

Step 2: Ask students if they know the possible results for a tax return.

Suggested answers could be:

  • a refund, where the CRA pays the individual
    • This could happen if the individual paid more tax during the year than they actually owe, for example, through the tax deducted from their pay.
  • a balance owing, where the individual has to pay the government
    • This could happen if the individual did not pay enough tax during the year, for example, if not enough tax was deducted from their pay.
  • a zero balance, where neither party pays an amount
    • This could happen if the individual has a low income, does not owe tax, and does not qualify for refundable tax credits.

Second exercise

Step 1: Ask students if they have ever done their own taxes or seen their parents or legal guardians do theirs. For those who have, ask if they remember anything that happened after submitting their tax return. Give them a few moments to share their experience.

Suggested answers could be they:

  • received a notice of assessment
  • received a refund
  • paid a balance owing
  • received a letter asking for supporting documents, such as receipts for medical expenses
  • sent in a request to change a return to claim a tax credit they forgot
  • contacted the CRA to ask for information

Step 2: Inform students that for some people, doing their taxes might be the only time they interact with the CRA in a given year. This can happen if the CRA doesn’t need any extra information from them, or if they do not need to make changes to their account. However, students should know there are other situations where they need to communicate with the CRA. So it is important to know what to expect.

Walk through the lessons step 3

Read through the lesson pages with the additional guidance provided below. Students can review material individually, in groups, or as a class.

Lesson A: Reading your notice of assessment

Before starting the lesson

Inform students that the confirmation mentioned in the warm-up exercise is called a notice of assessment. They will receive this tax document whenever they file a tax return, or a change is made to their tax return.

After finishing the lesson

Stress to students that they should read their entire notice of assessment when they receive it. It contains important information about their tax return, such as if the CRA changed the amounts initially reported. Once students are sure they do not need to take any action, they should keep the notice in a safe spot.

They may need their notice in the future to prove their income or that they did their taxes. They should keep their documents for six years after doing their taxes.

Students may need their notice of assessment or proof of income statement to:

  • apply for a loan
  • qualify for a benefit or subsidy
  • get financial assistance for post-secondary education

Lesson B: Getting a refund

Before starting the lesson

Explain to students that the CRA owes them a refund if they have more credits than amounts owing when they do their taxes. This most commonly happens if they paid more tax than they should have during the year, for example through deductions from their pay, or if they are entitled to refundable tax credits.

After finishing the lesson

Emphasize to students that the only way to get a refund is to do their taxes. The fastest and most secure way to get their refund is by direct deposit.

Lesson C: Having a balance owing

Before starting the lesson

Inform students that there may be a time when they have a balance owing when they do their taxes. This is when their amounts owing are greater than their credits. This most commonly happens if they did not pay enough tax during the year. For example, if not enough tax was deducted from their pay.

After finishing the lesson

Stress to students that although a balance owing may seem overwhelming, it doesn’t have to be. There are many options available to make a payment. The CRA will work with them to set up a payment arrangement if they cannot pay in full right away.

It is ideal to pay a balance owing as soon as possible. The CRA charges interest daily on the total balance, including previous amounts owing, interest, and penalties.

Activity

Separate the class by teams, and have each team explore one of the payment options outlined in the lesson. Then have each team explain the key points of that payment method to the rest of the class. Ask them to include a list of pros and cons.

Lesson D: Changing your tax return

After finishing the lesson

Remind students that they shouldn’t worry if they’ve made a mistake while doing their taxes. They can submit a request to change their return, and the CRA will let them know once it has finished its review. A review isn’t always a bad thing, since some reassessments can result in a bigger refund (like if students forgot to claim a tax credit).

Make sure students understand that they should answer any request the CRA sends them. Otherwise, the CRA will complete its review based on the information it has available.

Bring it all together step 4

Direct students to complete the quiz to assess their understanding.

Discuss the different situations that could occur after sending their taxes to the CRA.

Ask students to consider when they might need to:

  • read a notice of assessment
  • get a proof of income statement
  • receive a refund
  • pay a balance owing
  • set up a payment arrangement

Reconfirm that students will be doing their taxes for years to come, so it will be beneficial for them to understand what to expect in doing this. This understanding will make it easier for them to manage their income tax and benefit accounts and navigate their interactions with the CRA.


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Date modified:
2023-04-12