Tax season is here, and it’s time to gather your receipts, file your return, and make the most of your eligible credits and deductions. The Canada Revenue Agency’s (CRA) electronic filing service, NETFILE, is now open, and ensuring you file accurately and on time can help you avoid penalties and maximize your return.
Start with the Essentials
Before diving into the numbers, start by collecting all necessary documents. Some tax slips, such as T4s (employment income), T4As (pension income), T5s (investment income), and T3s (trust-related income), can typically be accessed through your CRA MyAccount. However, you’ll need to track down receipts for deductions like:
- Medical expenses
- Charitable donations
- Child-care costs
- Union dues
Many tax slips are now sent electronically, either through your employer or financial institution. If you haven't received them, checking your CRA account is a good idea.
Don’t Be a “Selfish Tax Planner”
Tax planning isn’t just about your own return—it’s about looking at your whole family’s financial picture.
“I think you just can’t sit and do your return in a silo or in isolation. You have to look at the returns of all your family,” says tax expert Brian Quinlan.
Some credits and deductions can be transferred or grouped together to maximize your return, such as:
- Combining charitable donations or medical expenses on one return
- Transferring tuition credits from a low-income student to a higher-earning parent
Key Tax Deadlines
- April 30, 2025: Filing deadline for most individuals
- June 16, 2025: Filing deadline for self-employed individuals (since June 15 falls on a weekend)
If you’re self-employed and owe taxes, keep in mind that interest on any outstanding balance starts accruing after April 30, even though your filing deadline is in June.
RRSP Contribution Deadline
Looking to reduce your 2024 tax bill? The deadline to contribute to your RRSP for the 2024 tax year is March 3, 2025. Contributions made before this date can help lower your taxable income.
Capital Gains Update
A significant change initially expected for this tax season has been deferred. The federal government announced that the planned increase to the capital gains inclusion rate will not take effect until 2026. For now, 50% of all capital gains remain taxable, the same as in 2023.
However, due to these changes, the CRA has noted that its systems will not be ready to accept tax returns from individuals reporting capital gains or losses until late March. To accommodate this, the CRA will grant interest and penalties relief until June 2, 2025, allowing more time to file.
Charitable Donation Receipt Extension
Another change this tax season is a two-month extension for obtaining charitable donation tax receipts. This stems from the Canada Post strike that halted mail delivery late last year.
Many charities experienced a decrease in donations in December due to the strike, so the government introduced a temporary adjustment. Donations made in the first two months of 2025 can be claimed either on your 2024 return or your 2025 return.
Don’t Miss the Filing Deadline
A common myth about tax season is that missing the deadline doesn’t matter if you don’t owe taxes. However, this is not true.
Even if you had no income to report for 2024, filing a tax return is necessary to receive benefits such as:
- The Canada Child Benefit
- The GST/HST Tax Credit
- The Canada Carbon Rebate
“They could be missing out on some credits and benefits that are being paid by the federal or provincial governments, but also sometimes there could be penalties that apply to your tax return even if you don’t owe taxes to CRA,” says H&R Block tax specialist Yannick Lemay.
With over 400 tax credits and deductions available, it’s easy to miss out on valuable savings. Consulting a professional or using tax software can help ensure you take advantage of all applicable credits.
Need Help with Your Taxes?
Navigating tax season can be complex, especially with evolving tax rules. If you have questions about deductions, tax planning, or maximizing your return, our team at Brant Financial Group of Assante Capital Management Ltd. is here to help. Contact us today for expert guidance!
