What happens if you don’t file your taxes (and how to fix it) + MORE Mar 27th

Landing a new job or being laid off from your current position can be life-changing—whether it’s an exciting transition, a tough stretch or a chance at a fresh start. But months after the dust settles, people often forget that job changes can also impact that year’s tax return. Experts break down common ways job changes can affect your return.

How a new job affects taxes

Getting a new job with a pay raise could bump you into a higher tax bracket. For the 2025 tax year, the federal tax rate is 14.5% for the portion of taxable income up to $57,375. Those who earn more than that amount pay a gradually increasing tax rate on their income above that threshold.

This means you might want to consider ways to reduce a potentially larger tax bill, such as contributing to registered retirement savings or donating to eligible charities to be able to claim a tax credit.

Stefanie Ricchio, a chartered professional accountant and TurboTax spokesperson, said new employees can also look into job-related deductions, such as claiming moving expenses if they moved at least 40 kilometres to be closer to their new employer…

Every year, many Canadians tell themselves they’ll file their taxes “soon.” But life can get busy, paperwork piles up, and before they know it, one missed deadline turns into several. 

For one woman, “soon” turned into 14 years. She had worked at the same job for over 20 years, with regular deductions taken from her paycheques. But after becoming overwhelmed by the tax process, she stopped filing altogether. What began as a single missed return became years of unfiled taxes—something that felt harder to face with time.

As a non-profit credit counselling agency, we at Credit Canada often see how easily this can happen. One missed return can quickly turn into several, creating stress around something that once felt routine. This woman came to us through our financial coaching program, Credit Canada GOLD, where she was supported in gathering her documents and catching up on her filings. In the end, she received a refund of $18,484 (money she hadn’t realized she was owed) and used it to pay down a significant portion of her debt…