Free tax clinics help low-income Londoners stretch their dollars further

It might seem unbelievable that the simple act of doing your taxes could transform your life, but for many low-income earners, that's the case. 

A cancer patient was able to offset the cost of some of her medical bills. A woman was able to triple her monthly grocery funds. A family learned about the Universal Child Care Benefit, which made such a difference in their income they were able to get a vehicle, make deliveries with their small business and stabilize their income and quality of life.   

As tax season gets underway in Canada, volunteers running free tax clinics across London are helping modest-income earners find some extra cash. 

"If they haven't done their tax returns, then that's money they should be getting, and the only way they can get it is to do their tax returns. We help with that," said Diane MacMillan, who has been volunteering at tax clinics for 20 years.

In 2021, 5,280 volunteers came together across Ontario to help 160,860 people with their taxes through the clinics.

After helping hundreds of people, MacMillan has seen her share of victories. She uses the expertise she developed working for 45 years as a banker to put more money in the pockets of Londoners. 

"There are just so many people who come to us for help," she said. "It's my way of giving back." 

This year, she's running clinics at the Crouch and East London branches of the London Public Library. 

She believes many people aren't familiar with the benefits available — like the Ontario Staycation Tax Credit for staying at a hotel, cottage or campground, or the Seniors' Care at Home Tax Credit to help with medical aids and expenses. 

Filing taxes reduces poverty, says organizer

"By doing your taxes and getting those benefits that the government has available, that is the first step in reducing poverty," she said.

With rising prices, some people will procrastinate filing taxes because they believe they can't afford to pay, she said. But at the clinics, they'll do it for free. 

As many as one in ten Canadians aren't filing their tax returns, according to research from the School of Public Policy at Carleton University that was published in 2020. Researchers found the total lost benefits to working-age Canadians due to not filing was about $1.7 billion in 2015. 

Kayla Scott will be heading to the clinic at the Crouch Library to catch up on filing taxes after falling behind during the pandemic. She's used the clinic for years, and said it's a better way to avoid the lineups and the fees. 

"It's just easier," she said. "There are places that are available and affordable for people with low-income."

Filing taxes is one of the best ways to stabilize someone's income, said Jennifer Martino, executive director of the Crouch Neighbourhood Resource Centre, who hosts the clinic the library for people in east London. She's seen people nearly in tears after catching up on their taxes and accessing income supplements they didn't know were available.

"If you're on a low income, every single cent counts," she said. 

Many people come in nervous, concerned they're in trouble for not filing taxes for years.

"If people owe, that's something that they can work out over time. But in the vast majority of cases we see here, that isn't the case," she said. "We don't make any of those promises, and we can't tell until the paperwork is filed, but it's something that we can work with each individual on."

The clinics can help those living on a modest income with simple tax situations at various locations across the city. 

The deadline to file income and benefit taxes in Canada is April 30, or June 15 if you are self-employed.