Tax season is right around the corner, so it’s best to plan ahead to make this year’s tax filing less stressful. Here’s how you can start to get ready for the upcoming tax season.
1. Know the Deadlines
The deadline for most individuals to file their return and pay any amount owing is April 30, 2025. If you’re self-employed, you have until June 16, 2025 (as June 15th falls on a Sunday) to file your return, but any taxes owed must still be paid by April 30, 2025. Mark these dates on your calendar to avoid late filing penalties.
2. Gather Your Documents
Knowing what documents you need ahead of time will help you not scramble at the last minute. You should receive income slips around the end of February, and RRSP and investment slips by mid March. Start by gathering:
- Income slips such as T4 slips from employers, T5 slips for investment income.
- RRSP contribution slips.
- Receipts for eligible expenses, such as medical bills, childcare costs, and charitable donations.
- Tax credit documentation, like tuition receipts or home accessibility expenses.
If you’re self-employed, include business income and expense records, and if applicable, GST/HST returns.
3. Review Tax Legislation Changes
Tax legislation and credits change yearly. For example, the Basic Personal Amount for 2024 is $15,705. For 2025, it will be $16,129. Familiarize yourself with the latest updates to avoid missing out on savings. You can reach out to us to learn more about how the changes affect your tax filing.
4. Organize Receipts
Create a system to organize your receipts and documents. Use folders, envelopes, or digital tools to categorize receipts and paperwork by type (e.g., income, expenses, deductions). Using a scanning app can help make this process easier.
You should be aware of what applies to your situation to reduce taxable income.
5. Set Up a CRA My Account
If you haven’t yet done so, be sure to register for the CRA’s online portal as it is a valuable tool for managing your taxes. You can access tax slips, track your return status, set up direct deposit, and communicate with the CRA.
6. Talk to a Tax Professional
If your taxes are complex, consider hiring a tax professional. Bookkeepers and tax preparers can ensure accuracy, help you maximize eligible deductions, and provide advice tailored to your circumstances.
Need help navigating tax season? Our team of experienced professionals can simplify the process for you. From filing your return to identifying all eligible credits and deductions, we’re here to ensure a stress-free experience. Contact us today.
