Some teachers expecting tax return delays as they await government action on bill with new credit

Teachers who took advantage of a new federal tax credit that helps with the cost of school supplies are being warned of delays with their tax returns as the proposed legislation crawls through Parliament.

The Canada Revenue Agency (CRA) says it can't process the Eligible Educator School Supply Tax Credit because Bill C-8 hasn't yet received royal assent, despite being tabled in December 2021.

"Should Royal Assent be achieved, the Notices of Assessment will be issued to the impacted individuals," a spokesperson for the CRA said in a statement emailed to CTVNews.ca on Friday.

Bill C-8 has been slowly winding its way through the House of Commons since it was tabled following the fall fiscal update. It's currently at report stage, meaning it still has at least one more vote and some debate time to go before it could move into the Senate for a second round of legislative assessment.

But teachers are not the only ones whose tax returns are affected by the legislative delay. Canadians hoping to take advantage of the Return of Fuel Charged Proceeds to Farmers Tax Credit will also experience a delay in receiving their tax return, according to the CRA.

As of April 18, the CRA said there are approximately 70,000 returns being held back due to either tax credit.

"When it became apparent that enabling legislation would not be enacted in time for the start of the filing season, the CRA advised tax software developers as well as tax preparers, and clarified that it is the taxpayer’s option whether to claim the tax credit given the potential for delay," the CRA spokesperson said.

For those who could have taken advantage of either of the new tax credits on their 2021 return but did not, the CRA said they do not have to wait for next tax filing season to submit a reassessment request.

Changes to a tax return can be submitted electronically, through Change My Return or ReFILE, or by sending, via mail, a completed Form T1-ADJ, T1 Adjustment Request, as well as the supporting documentation, the CRA said. Any changes will be processed and returned once Bill C-8 receives royal assent.