Tax season is upon us, with the deadline to file just a few weeks away.
With that, the Canada Revenue Agency has issued a handful of reminders for taxpayers. The agency says one of the most important things to do is to ‘be prepared’ when going to file, which includes gathering your documents early and registering for an online CRA account. An account lets you securely access your personal tax information at any time.
The agency says filing online can help save time, avoid mistakes and ensure you get all the benefits and credit payments you are eligible for.
The CRA says it uses information from your income tax and benefit return to calculate the amount of your benefit and credit payments.
“To continue receiving your benefit and credit payments, do your taxes on time every year, even if you have no income to report or your income is tax exempt,” the CRA says. “If you have a spouse or common-law partner, they also have to do their taxes on time.”
FILING YOURSELF VS. A TAX SERVICE
When it comes to deciding if you should file yourself or go to a tax filing service, the CRA says you should go with the option that you are most comfortable with.
A list of certified tax software products is available at the CRA website.
RISE IN SELF-FILING
The CRA says that during the last tax-filing season, the agency received over 33 million income tax and benefit returns, with a staggering 93 per cent of those filed online, as opposed to coming from an in-person tax filing service.
Officials add that some community organizations host free tax clinics where volunteers complete tax returns for individuals with “a modest income and a simple tax situation”. More information about the Community Volunteer Income Tax Program is available here.
COMMON MISTAKES
To reduce the risks of facing any complications or being audited, the CRA recommends taxpayers to keep all their supporting documents, from the last six years, in case the agency asks to see them later.
For people who are self-employed, they should keep their financial records, like receipts and invoices. The CRA says this will help them figure out the tax they may owe and support any deductions or credits they claim when filing.
“Keep your business and personal expenses separate,” the agency states.
“Tracking your business receipts and the reasons for your expenses will make it easier when it is time to file.”
EXTRA BENEFITS
The CRA says there are many benefits, credits and programs available when filing taxes. Last year, the agency says it delivered more than $52 billion in benefit payments.
You can find out what services and benefits you might be eligible for from federal, provincial and territorial governments at the Government of Canada website.
UNHOUSED INDIVIDUALS
“People need to do their taxes every year to qualify for many federal, provincial and municipal programs and services, like benefit and credit payments, even if they have no income or have income that is tax exempt,” says the CRA.
However, that can prove tricky for people in need, like those who are homeless. The CRA says the free tax clinics from the Community Volunteer Income Tax Program could be beneficial to vulnerable populations.
The agency notes that last tax-filing season, over 857,500 people were helped by free clinics. That included 101,300 residents in Alberta.
TAX DEADLINE
The deadline for most individuals to file their income tax and benefit return, as well as pay any taxes owed in Canada, is April 30, 2025.
Further information is available at the federal government website.
