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Best Practices for Filing Your Taxes in Canada

March 11, 2025

Filing taxes can be a daunting task, but with the right approach, it can be a smooth process. Here are some best practices to consider when filing your taxes in Canada:

Gather Your Documents Early

Start by collecting all necessary documents:

  • T4 slips (employment income)
  • T5 slips (investment income)
  • T3 slips (trust income)
  • RRSP contribution receipts
  • Receipts for tax credits (e.g., charitable donations, childcare, medical expenses)
  • Details of any government benefits (e.g., Canada Child Benefit, GST/HST credits)
  • Records of any business income and expenses (if self-employed)
  • Other relevant tax documents (e.g., student loan interest, union dues)

Having everything in one place will save you time and stress.

Know Your Deadlines

The deadline for filing individual tax returns in Canada is usually April 30th. If you’re self-employed, you have until June 15th, but any taxes owed are still due by April 30th.

Use Tax Software

Tax software: Many Canadians use tax software (like TurboTax, SimpleTax, or UFile) to file their taxes. These tools are user-friendly, often guide you through the process, and can help you maximize deductions and credits.

Tax professional: If your tax situation is complex (e.g., you’re self-employed, have rental income, or claim multiple deductions), it may be worth hiring a tax professional or accountant to ensure you’re getting all the deductions and credits you’re entitled to.

Maximize Deductions and Credits

Take advantage of available deductions and credits, such as RRSP contributions, medical expenses, and education credits. These can significantly reduce your taxable income.

Double-Check Your Return

Before submitting, review your return for accuracy. Ensure all information is correct to avoid delays or penalties.

File Electronically

Filing electronically is faster and more efficient. The Canada Revenue Agency (CRA) processes electronic returns quicker than paper ones, and you can receive your refund faster.

Keep Records

Maintain records of your filed return and supporting documents for at least six years. This is important if the CRA requests further information or audits your return.

Be Aware of Tax Scams

Be cautious of tax scams, especially during tax season. The CRA will never ask for personal information via phone or email. Always verify requests for information directly through the CRA’s official website or phone number.

By following these best practices, you can make tax season less stressful and potentially save money. Happy filing! YNCUniversity is here for all your financial literacy needs. Need one-on-one help? We got you! Reach out to our advisors. Don’t forget to follow us on Instagram and Tik Tok for more Honest Money Talk tips!