The tax filing deadline, commonly referred to as “Tax Day,” for 2025 is Wednesday, April 30. If you were actively or temporarily employed in 2024, you should receive a CRA T4 slip from each employer within the first few months of 2025. This document is essential for accurately filing your taxes.
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What Is a T4 Slip and Why Is It Important?
Your T4 slip contains critical information for your tax return, including:
- Taxable income you earned from the job
- Total income taxes deducted from your paychecks
- CPP/QPP, EI, and PPIP contributions
Be sure to keep the T4 slip for each job you held in 2024. This information is necessary for filing your return correctly, and you can either use the physical copy or scan it digitally.
Filing by the April 30 deadline ensures you avoid late-filing penalties and interest charges on any taxes owed. Additionally, filing early can expedite refunds or benefits like the Canada Child Benefit (CCB).
Key Tips for the 2025 Tax Season
Although the deadline is months away, preparing early can save time and reduce stress. Here are important things to consider:
1. New Personal Income Tax Brackets for 2025
Canada uses a progressive tax system where tax rates increase based on income. For 2025, tax brackets have been adjusted by 2.7% to account for inflation:
- 15% on the first $57,375
- 20.5% on income over $57,375 up to $114,750
- 26% on income over $114,750 up to $177,882
- 29% on income over $177,882 up to $253,414
- 33% on income over $253,414
In addition to federal taxes, you’ll also need to account for provincial or territorial taxes based on your location.
2. CRA Late-Filing Fees for 2025
If you miss the April 30 deadline, the CRA will impose late-filing penalties, including:
- 5% of your balance owed
- An additional 1% per month for each month the balance remains unpaid
Avoid these fees by filing on time and paying any balance owed as soon as possible.
3. Updates to the Canada Child Benefit (CCB) for 2025
In line with the adjusted tax brackets, the CRA has increased CCB payments by 2.7%. Here are the updated base benefits:
- $7,997 per year for children under 6 (up from $7,787)
- $6,748 per year for children aged 6 to 17 (up from $6,570)
These changes aim to provide additional financial support for families.
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Final Thoughts
Filing your taxes in 2025 will be similar to previous years, but staying informed about updates can simplify the process and help you maximize your refund or benefits. Here are some parting tips:
- Start gathering your documents early, including T4 slips and receipts for deductions.
- File your taxes as soon as you have all necessary information to receive refunds or benefits promptly.
By preparing ahead of time, you can ensure a stress-free tax season while avoiding penalties and interest charges. If eligible, you’ll also gain quicker access to any refunds or benefits owed to you
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