• You have no income for the year  (for example, a stay-at-home Mom);...or
  
• You income is at a level that you do not have to pay Tax.

However, Filing a Tax Return is always advisable -- click here to see why.

1. Mandatory Filing

CRA requires that you MUST file a return if any of the following situations apply:

• You have to pay tax for 2007.

• CRA sent you a request to file a return.

• You and your spouse or common-law partner elected to split pension income for 2007.

• You disposed of property in 2007 (e.g. you sold real estate or shares) or you realized a taxable capital gain (e,g. if a mutual fund attributed amounts to you, or you report capital gains reserve you claimed on your 2006 return).

• You have to repay any of your Old Age Security or Employment Insurance benefits.

• You have not repaid all of the amounts you withdrew from your Registered Retirement Savings Plan (RRSP) under the Home Buyers' Plan or the Lifelong Learning Plan.

• You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2007, the total of your net self-employment income and pensionable employment income is more than $3,500.

2. Voluntary/ Optional Filing

Filing a Return is always advisable. Even if you are not required to; you may still benefit by filing a return if:

• You want to claim a refund for tax that has been withheld from your income.

• You want to apply for the GST/HST credit. For example, you may be eligible if you turn 19 before April 2009.

• You or your spouse or common-law partner want to begin or continue receiving Canada Child Tax Benefit payments.

• You have incurred a non-capital loss in 2007 that you want to be able to apply in other years.

• You want to carry forward or transfer the unused part of your tuition, education, and textbook amounts

• You want to report "earned income" for later  RRSP contribution, in order to maintain future RRSP deduction limits.

• You want to carry forward the unused investment tax credit on expenditures you incurred during the current year.