It’s that time of year again – tax season is right around the corner! Most Canadians wait until their T4s (and other tax slips) arrive before thinking about their returns, but getting organized early can make the process smoother and help you avoid last-minute stress. Here's our step by step guide for getting your ducks in a row before this year's tax deadline sneaks up on you.
1. Gather Your Receipts and Documents
Even if your T4 (or T4A if you’re self-employed) is the main tax slip you’re waiting for, other documents may be needed to maximize your return. Start collecting:
● Medical expenses (prescriptions, dental work, vision care, etc.)
● Charitable donations (you may be eligible for a tax credit)
● RRSP contributions (especially if you're planning to contribute before the March 1 deadline)
● Work-from-home expenses (if applicable, keep track of utility bills, internet, and home office supplies)
● Childcare and education expenses (daycare receipts, tuition payments, student loan interest statements)
Having these in one place – whether digitally or in a folder – will make filing much easier.
2. Review Your RRSP and TFSA Contributions
If you're planning to make an RRSP contribution to reduce your taxable income, don’t wait until the last minute. The deadline for RRSP contributions that count toward your 2024 return is March 3, 2025.
Check your available RRSP contribution room on your CRA My Account or your most recent Notice of Assessment to avoid overcontributing, which can result in penalties.
Also, review your TFSA contributions for 2024. While TFSA deposits don’t impact your taxes directly, understanding your available room can help you plan for tax-free growth.
3. Organize Business or Side Gig Income
If you’re self-employed or earn freelance income, you’ll need to track all income sources and expenses. Start gathering:
● Invoices and payment records
● Business expenses (advertising, home office, supplies, travel)
● GST/HST collected and remitted (if applicable)
Keeping everything organized in a spreadsheet or accounting software will save time and ensure you claim all eligible deductions.
4. Log into Your CRA Account
Your CRA My Account is a valuable tool during tax season. Now is a good time to:
● Confirm that your personal information (address, direct deposit details) is up to date.
● Check for any unclaimed benefits or tax credits.
● Review past returns to ensure consistency in reporting.
If you haven’t set up your CRA account yet, do so now – accessing it is easier before the rush of tax season.
5. Consider Working with an Accountant or Tax Professional
While many Canadians file their taxes on their own, working with a professional can help you uncover deductions and tax-saving opportunities you might have missed. If your finances are more complex – such as self-employment, investments, or rental income – having expert guidance can save you money and hassle.
Get Ready for a Smooth Tax Season
By tackling these steps before your T4s arrive, you’ll be ahead of the game when it’s time to file. Tax season doesn’t have to be stressful – preparing in advance can make all the difference! Learn more about how we can help.
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