Tax Preparation Tips

As the Canadian tax deadline approaches, many of us find ourselves rushing to get everything in order. While last-minute tax preparation isn’t ideal, it’s still possible to file accurately and on time with a little focus and some smart strategies. Here's what you need to know to get your taxes done without unnecessary stress.

Know Your Deadlines

The first step to effective tax prep is understanding the deadlines. In Canada, most individuals need to file their taxes by April 30.¹ If you or your spouse/common-law partner are self-employed, you have until June 15 to file.² Missing these deadlines could lead to penalties and interest charges, so filing on time is essential.

Gather Your Documents

You can streamline even a last-minute tax rush if your paperwork is ready. Ensure you have your T4 and T5 slips, RRSP contribution receipts, charitable donation receipts, and any medical expenses or tuition records. If you’re missing a tax slip, you can often retrieve it through your CRA My Account.³ Having these documents in hand will save time and reduce filing errors.

Take Advantage of Deductions and Credits

Maximizing deductions and credits is one of the best ways to lower your tax bill or increase your refund, even if you’re short on time when filing. You may be able to claim deductions for things like contributions to an RRSP, eligible medical expenses, charitable donations, and education-related expenses. Make sure to review the full list of eligible deductions to avoid leaving money on the table.

File Electronically

Filing electronically is the fastest and easiest way to complete your taxes, especially at the last minute. Additionally, electronic filing allows you to receive your refund faster, especially if you opt for direct deposit. In 2022, approximately 92% of individuals filed their returns electronically.⁴ You can file online using NETFILE or one of the certified tax software products listed by the CRA.

Handle Payments Promptly

If you owe taxes, paying them by the April 30 deadline is important to avoid interest charges. Payments can be made online through your bank, via the CRA's My Payment service, or through pre-authorized debit. If you cannot pay the full amount, contact the CRA to discuss setting up a payment plan, as this may help you avoid further penalties.

Talk to a Tax Professional If Needed

If you’re unsure about your tax situation or have complex finances, a tax professional can be invaluable. Many professionals offer last-minute filing services and can help ensure your return is accurate and optimized for deductions and credits. Even with limited time, their expertise can make a big difference.

While last-minute tax preparation can be stressful, staying organized and using the tools available can help you file on time and minimize errors.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.