When you have little or no income, filing a tax return might feel unnecessary. Many Canadians skip it because they assume there’s nothing to report. But the truth is that filing a tax return every year, even with nil or zero income, can open the door to important benefits, credits, and future tax advantages.
If you didn’t earn income this year, here’s why you should still file—and how easy it is to file a nil return with CloudTax.
Why File a Tax Return With No Income?
Even with $0 income, filing a return ensures you don’t miss out on:
1. Benefits and Credits You May Qualify For
Many federal and provincial programs require you to file a return so the CRA can calculate your eligibility. If you don’t file, you won’t receive these payments.
Examples include:
GST/HST credit
Canada Carbon Rebate (formerly the Climate Action Incentive)
Provincial credits (varies by province)
Child benefits (if applicable)
These benefits are based on family income—and the CRA needs your return to determine your entitlement.
2. Building Your RRSP Contribution Room
The CRA calculates your RRSP contribution room each year based on your tax return. Even in a $0 income year, filing keeps your records current and avoids gaps.
3. Keeping Your CRA Information Up to Date
Filing updates your:
Marital status
Address
Direct deposit
Prior-year balances
Carry-forward amounts (even if unused)
Keeping this information accurate helps avoid delays when you do start earning or become eligible for certain programs.
4. Avoiding Delays When You Need Benefits Later
If you apply for student loans, rental assistance programs, or community benefit programs, they often request your Notice of Assessment. Filing ensures you have it ready.
5. Establishing Filing History for Immigration or Financial Purposes
For newcomers, students, and individuals with inconsistent income, maintaining a continuous CRA filing history is helpful for:
Immigration applications
Mortgage approvals
Line of credit applications
Government assistance programs
A missing year can become a headache later.
What Is a Nil Return?
A nil return simply means:
You earned no income in the tax year
You’re filing your tax return to stay current with the CRA and access benefits
There’s no penalty for filing a nil return, and in many cases, it results in automatic benefit payments.
How to File a Nil or Zero-Income Return on CloudTax
Filing a $0 income return on CloudTax is simple, fast, and completely free.
Here’s how to do it:
Step 1: Sign in to CloudTax
Create an account or sign in at app.cloudtax.ca.
Step 2: Start Your Tax Return
Choose the year you’re filing and begin the return like normal.
Step 3: Enter Your Personal Information
Provide:
Name
Address
Date of birth
Marital status
Residency details
This helps the CRA verify your identity and calculate benefits.
Step 4: Skip Income Slips
You won’t need to enter any:
T4
T5
T5007
Other income slips
Since this is a nil return, you simply do not add income information.
Step 5: Complete the Provincial Credits Page
Most provinces offer basic credits that still apply even if you have no income.
CloudTax guides you through:
Provincial tax credits
Applicable eligibility questions
This step ensures the CRA calculates your benefits correctly.
Step 6: Review and File
Review that your income is $0 and CloudTax will show your estimated benefits and credits.
When everything looks good, submit your return securely to the CRA through NETFILE.
You’ll receive your Notice of Assessment directly from the CRA once processed.
Who Should File a Nil Return?
A $0 income tax return is especially important if you are:
A student
A newcomer to Canada
A stay-at-home parent
A gig worker who didn’t earn enough to exceed basic personal amounts
Unemployed
On social assistance
Someone who lived abroad for part of the year
Anyone who wants CRA benefits and future tax advantages
If you fall into any of these categories, filing ensures you don’t miss out.