Tax season is officially underway in Canada, and with the Canada Revenue Agency (CRA) now accepting tax filings through NETFILE, it’s time to ensure you’re maximizing your refund. Whether you’re aiming to claim deductions, access credits, or simply file on time, a little extra effort can yield significant returns.
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To help you make the most of your tax return, we reached out to tax experts Gerry Vittoratos, national tax specialist at UFile, and Stefanie Ricchio, CPA and spokesperson for TurboTax Canada. Here’s a breakdown of seven expert-backed tips to ensure you’re keeping as much of your hard-earned money as possible.
1. Organize and Keep Your Receipts Throughout the Year
One of the simplest yet most effective ways to ensure a larger tax return is by staying organized with your receipts and tax documents. Vittoratos emphasizes the importance of archiving receipts for expenses and credits. Missing out on potential tax-deductible expenses due to disorganization is a common pitfall. For self-employed individuals, this is even more crucial, as business expenses can be used to reduce taxable income.
Setting up a filing system—whether physical or digital—can save you time and money when tax season rolls around.
2. Review Life Changes for Tax Benefits
Did your life situation change in 2024? If you got married, had a child, bought a home, or experienced any other significant life events, it could affect the deductions and credits you’re eligible for. Ricchio highlights that changes in personal circumstances often open the door to new tax benefits, so it’s essential to reassess how you file each year.
Many tax software programs, including TurboTax and UFile, prompt users about relevant life changes, helping you identify deductions and credits you may not have realized you qualify for.
3. Consider Spousal Tax Planning for Greater Savings
For married or common-law couples, spousal tax planning can be a game-changer. Ricchio suggests allocating deductions or credits to the partner in a higher tax bracket, or considering strategies like pension income splitting and spousal RRSP contributions. These tactics can reduce the household’s overall tax liability, ultimately maximizing your tax refund.
4. Update Your Dependents to Unlock More Credits
It’s not just children who qualify as dependents on your taxes. Ricchio points out that you can claim various credits and deductions for anyone who relies on you financially, such as a spouse, elderly parent, or other family member.
For parents, claiming child care expenses, medical costs, and family-related benefits (such as the GST/HST Credit and Canada Child Benefit) can all result in significant tax savings. Additionally, caregivers for family members with disabilities may be eligible for the Canada Caregiver Amount. Always ensure your dependent information is up-to-date to avoid missing out on these important credits.
5. Contribute to Your RRSP for a Bigger Tax Refund
Contributing to a Registered Retirement Savings Plan (RRSP) is one of the most effective ways to reduce your taxable income and boost your refund. Vittoratos advises Canadians to make RRSP contributions before the March 3rd, 2024 deadline to lower their tax burden. Contributions to an RRSP (or your company’s Registered Pension Plan) can reduce the amount of taxable income, potentially bringing you into a lower tax bracket.
To make the most of this strategy, it’s best to contribute regularly throughout the year, but if you’re behind, there’s still time to maximize your deduction.
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6. File on Time to Avoid Penalties and Interest
While it may seem like a no-brainer, filing your taxes on time is crucial—especially if you owe the CRA money. Filing by the April 30, 2025 deadline helps you avoid penalties and interest charges, and if you’re expecting a refund, filing early ensures you’ll receive your money sooner.
If you’re ready to file, there’s no need to wait until the last minute. Filing early allows you to get ahead of the curve and alleviate stress.
7. Always File, Even If You Don’t Owe Taxes
Lastly, filing your tax return is essential—even if you have little to no income to report. Vittoratos explains that low-income Canadians who don’t owe taxes may still be eligible for important benefits like the GST Credit. Furthermore, filing ensures that you can carry forward unused non-refundable credits or deductions to future tax years.
Even if you’re already receiving benefits like the Canada Child Benefit, Ricchio reminds Canadians that continuing to file each year is necessary to keep receiving these payments.
Conclusion: Take Control of Your Taxes
By staying organized, staying informed, and using strategies like spousal tax planning, updating dependent information, and contributing to your RRSP, you can significantly boost your tax refund in 2024. Remember, the sooner you file, the sooner you can enjoy your tax refund—and the more money you can keep in your pocket. Don’t miss out on these expert-backed tips to ensure you’re getting the maximum refund this tax season.
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