Tax season is officially upon us, Canada! As of February 24, 2025, the Canada Revenue Agency (CRA) has activated its NETFILE service, which means it’s time to start filing your 2024 income tax return.
For those eager to receive a refund, the sooner you file, the quicker you could see that money in your account—sometimes in as little as two weeks if you file online and set up direct deposit. While filing your taxes may not be the most exciting task on your to-do list, it’s crucial if you want to claim the benefits and credits you’re eligible for. Plus, if you’ve overpaid on taxes throughout the year, a nice refund could be waiting for you.
Table of Contents
Whether you’re filing taxes for the first time or you’re a seasoned pro hoping to maximize your refund, here’s your comprehensive guide to what you need to know before hitting “submit.”
1. Stay Updated on What’s New for 2024
Before you start preparing your tax return, be sure to check out the CRA’s latest updates for 2024. This includes changes to benefits, credits, and tax brackets. Understanding these updates will help you avoid errors that could cost you money. Double-checking the CRA’s guidelines can make a big difference in your final refund amount.
2. Get Your Tax Slips in Order
Your tax return isn’t complete without the proper tax slips. Some of the most common slips you’ll need to gather include:
- T4: Employment income
- T4A: Pension, retirement, annuity, and other income
- T4E: Employment Insurance (EI) and other benefits
- T4FHSA, T4RIF, T4RSP: Income from registered savings accounts
- T5: Investment income
- T5007: Workers’ compensation and social assistance income
- T2202: Tuition paid
Remember, employers and financial institutions have until February 28 to issue these forms. It’s important not to file until you’ve received all necessary slips. Missing one could delay your refund or, worse, lead to a tax bill for underreporting income.
3. Gather Your Receipts for Deductions and Credits
To claim deductions and credits that can lower your taxable income or increase your refund, make sure you’ve collected all relevant receipts. Here are some common deductions and credits that can help:
- Employment expenses: If you’re working from home or have other work-related costs, make sure to have a signed T2200 form from your employer.
- Professional exam fees: Fees paid for certifications and licensing exams can be claimed.
- Teachers’ school supplies: Educators can claim up to a certain amount for classroom supplies.
- Child care expenses: Keep receipts for day care, babysitters, or day camps.
- Medical expenses: Track out-of-pocket medical costs, including prescription drugs, dental care, therapy, and more.
- RRSP & FHSA contributions: Contributions to registered savings accounts can reduce your taxable income.
- Charitable & political donations: Donations to registered charities or political parties may be eligible for tax credits.
- Digital news subscriptions: Certain subscriptions to Canadian news outlets may qualify for credits.
- Home accessibility and purchase expenses: Renovations for accessibility or costs related to buying your first home may be eligible for tax credits.
- Tuition expenses and student loan interest: Post-secondary tuition fees and government student loan interest can be deducted.
4. Make Last-Minute Donations or RRSP Contributions
Want to reduce what you owe or boost your refund? Making eligible charitable donations or contributing to your RRSP before the deadline can significantly impact your 2024 tax return.
- Charitable donations: The CRA has extended the 2024 donation deadline to February 28, 2025. Donations made by this date will count toward your 2024 return.
- RRSP contributions: You have until March 3, 2025, to make contributions that count toward your 2024 tax year. Keep in mind that RRSP receipts made in the first 60 days of the year may not be available until May, but you can still file and get a confirmation from your bank.
5. Update Your Personal Information
It’s essential to verify that your personal details, such as your address and marital status, are accurate with the CRA. Small errors could delay your refund or affect your eligibility for benefits and credits. If your marital status changed in 2024, inform the CRA as soon as possible. Don’t forget to sign up for direct deposit to receive your refund quickly.
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6. Know Your Deadlines
Key tax season deadlines are fast approaching. Mark your calendar for the following dates:
- February 28, 2025: Last day for employers and financial institutions to issue T4, T4A, and T5 slips.
- February 28, 2025: Extended deadline for charitable donations to claim them for the 2024 tax year.
- March 3, 2025: Deadline to contribute to your RRSP for the 2024 tax year.
- April 30, 2025: Filing deadline for most Canadians, and also the last day to pay any owed taxes.
- June 16, 2025: Special deadline for self-employed individuals or their spouses/common-law partners. Taxes owed are still due on April 30.
7. Choose Your Filing Method
Once your paperwork is organized, it’s time to decide how to file. There are several options available:
- NETFILE-certified tax software: The CRA recommends using NETFILE-certified software for electronic filing. There are both free and paid options.
- Tax preparer or accountant: If you prefer professional help, a tax expert can file your return using EFILE-certified software.
- Community volunteer tax clinics: Eligible Canadians can receive free help at community clinics.
- Paper tax return: For those who prefer traditional methods, you can still mail in your completed forms.
- SimpleFile services: This is an automatic tax-filing service available by invitation from the CRA.
8. File Early and Stay Organized
While filing taxes may seem overwhelming, staying organized and mindful of deadlines will make the process easier. Filing early—especially if you’re expecting a refund—ensures you get your money back faster.
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