Does having debt in collections affect your tax return?

*waves vancouver*

depends on whom debt owed to.
if owe previous year's assessment, or if owe federal or provincial government money - or effect years return, yes. example if filed last year , owed $100 never paid, , got refund year of $300, they'd send me $200... minus original owed.

if debt owed private company, nothing income tax or owing government instead private business - whatever supposed refund - you'll full amount.

proviso if private company has court order against you, of course you'd aware of... if none has, it's not concern.

debt private collections agency, won't effect anything.
debt government, they'll want when file.

hope helps :)

i have 100 debt need pay off. , it's been sitting in collections. taxes have come out , go , them done tax return. don't know if having debt in collections affects return. canada rules might different usa

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