Tax Season Is Officially Here

Hello All,

Tax season is now officially underway. If you're an accountant or bookkeeper, you’re starting to feel the pressure. Eager clients (especially those expecting refunds) have likely already begun reaching out, and any time off over the next couple of months will come at a premium.

Business owners and individuals are also starting to feel some stress. Despite your best intentions to stay organized and avoid procrastinating, time flies and you might find yourself with some catching up to do (I speak from experience on this :)).

For me, the date that tax season begins is when CRA opens its e-filing portal , which was February 24th this year. This means that you are now officially be able to submit your 2025 tax return.

For most Canadians, the filing deadline is April 30th. If you owe tax and file late, the CRA will charge penalties and interest.

If you’re expecting a refund, there’s no penalty for filing late but benefits such as GST credits or other benefits can be delayed.

No matter how simple your situation is, I highly recommend filing a tax return as I explain in this article https://www.montrealfinancial.ca/blog/why-every-canadian-should-file-a-personal-tax-return

Getting Organized

Even if you aren’t ready to file yet, now is the time to gather your documents.

Some of the more common slips include:

• T4 (employment income)

• T5 (investment income from non-registered accounts)

• RRSP contribution receipts

• Medical and donation receipts

• Tuition slips

• Childcare receipts

• Professional dues

If something is missing, check with the issuer as sometimes slips don't arrive in the mail as they're supposed to or if emailed, they might be sitting in your junk. In some cases, especially with investment income, you have to login to your financial institution and retrieve the slip.

Most tax software also allows you to use CRA’s “AutoFill My Return” feature, which pulls in information already reported to the CRA (like T4s and T5s). This is a great time saving feature. Revenue Quebec has a similar feature.

I also recommend creating:

• A physical folder for paper documents

• A dedicated tax folder on your computer

Being organized can really help make the filing process smoother and less stressful.

If You’re Self-Employed or Run an Unincorporated Business

If you earned business income, your filing deadline is June 15th. However, if you owe tax, interest starts accruing May 1st so I recommend filing by April 30th or at least estimating your taxes.

Unlike employees, you don’t receive a T4 summarizing everything. Consequently, you’re responsible for:

• Calculating your total sales and expenses.

• Categorizing your business expenses

• Collecting require info for home office and/or vehicle claims

• Reporting everything accurately on the Schedule T2125 of your personal tax return.

If you’re registered for GST/HST, remember that this is completely separate from your income tax return. Filing and payment deadlines depend on your reporting period, and missing them can result in significant penalties.

Should You DIY or Hire Someone?

Many Canadians have fairly straightforward returns, and I’m a big supporter of doing your own taxes if they’re relatively simple and the thought of it doesn’t overwhelm you. Also, tax software greatly simplifies the process.

Most tax software only charges when you actually submit the return, so for those of you who aren't terrified by the thought of doing it yourself, might consider taking a crack at it and assessing how you feel.

Doing your own return can:

• Help you understand your finances better

• Increase your confidence

• Reduce the fear around “what if something was missed?”

That said, if your return feels complicated or overwhelming, I definitely recommend hiring a tax preparer or accountant.

Ronika

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