Preparing for tax filing in Canada can seem daunting, but taking a few simple steps can make the process much smoother. With the right preparation and understanding of the tax filing process, filing your taxes can be a simple process!
Here are some tips to help you get started:
- File on time
- Gather all necessary documents
- Keep receipts and documents
- Consider hiring a professional
- Watch out for our free annual tax checklist
File on time
Make sure to file your taxes on time. Even if you cannot afford to pay the tax balance owing, file your income tax return on time to avoid additional interest and penalties. The deadline for most Canadians is April 30th, but some individuals may be allowed to file before June 15. It is always best to check with your accountant or CRA to confirm.
Also, be aware that even though your tax return may not incur late filing penalties if your tax filing deadline is June 15, the interest on any balances owing to the CRA starts accumulating on April 30.
Gather all necessary documents
Make sure you have all your T4s, receipts, and any other relevant paperwork in one place. Be sure to consider all sources of income and all eligible credits. This will save you time and stress when it’s time to file. Some examples of credits to keep top of mind include:
- RRSP payments
- Childcare and child-related fitness or arts expenses
- Medical expenses, including travel incurred for medical appointments
- Tuition credits or tuition transfers from dependents
- Eligible apprentice tools or educator supplies
- Primary caregiver tax credits
Keep receipts and documents
The CRA expects all taxpayers to keep their receipts and documents for at least six years from the end of the year to which they relate. CRA post-assessing reviews are becoming more common. By keeping all your receipts and documents, you will be better prepared to answer promptly.
Consider hiring a professional
If you’re not comfortable doing your taxes yourself, consider hiring a professional. They can help ensure you’re getting all the deductions and credits you’re entitled to and can save you time and stress.
Watch out for our free annual tax checklist
Here at Accent, we understand that Canadian tax returns can be complex to put together. We send our clients a copy of our annual tax preparation checklist to help them consider all the tax deductions and credits that might apply to you! If you would like your free copy of this tax checklist:
Personal Tax Checklist
In order for you to maximize your tax return, we created a Free Personal Tax Checklist
By following these simple steps, you can make tax time a little less stressful and ensure you’re getting the most out of your tax return. If you have any questions on the tax credits or deductions you are allowed to claim, reach out to us for trusted advice and personal service.