Tax Season Preparation

It’s that time again—time to gather your tax notices and receipts.

The tax filing season for 2025 kicks off on Monday and runs for just over nine weeks, wrapping up at the April 30 deadline for most individuals.

Most employers are expected to send out T4 slips through mail, email, or employee portals by the end of February. Additionally, financial institutions will issue investment slips, while more complex investment firms provide clients with annual summaries detailing all investments and profits around the same time, according to Ryan Miner, the head of tax at Chartered Accountants of Canada.

If you think you might owe the government, it could be wise to think through some scenarios, Miner suggests. If there’s still room for contributions, you might reduce what you owe by putting more funds into a registered retirement savings plan.

You have until March 2 to make RRSP contributions for the 2025 tax year.

Yannick Lemay, a tax expert at H&R Block, emphasizes the importance of being aware of the credits and deductions you’re eligible for.

According to LeMay, Canadians might qualify for over 400 possible deductions and credits when filing their taxes.

“It’s crucial to gather the necessary documents since many of these credits and benefits require proof,” he remarked.

Miner points out that certain tax credits, like the disability tax credit, often go unnoticed. “I’ve encountered several cases where it was claimed, re-evaluated, and even refunded for previous years,” he noted.

He suggested examining your circumstances for any potentially claimable credits, particularly if you’re a first-time homebuyer or in need of housing accessibility support.

It’s also advisable to log into your Canada Revenue Agency account to ensure you haven’t overlooked any slips or documents.

“If the CRA has records that you don’t, you should definitely chase that down,” he urged.

Your CRA My Account provides updates on refunds, credits, and any disputes, along with information on direct deposit scheduling for your tax refund.

Even if you won’t be filing for a couple of weeks, it’s a good idea to check and confirm that your address and other details are accurate in the system, as you’d still have time to correct anything if necessary.

This tax season, the CRA is implementing a few new changes.

One notable change means taxpayers won’t have to wait for days to receive a code in the mail for opening a CRA account; instead, they can verify their identity through an online tool.

Charles Drouhin, a spokesperson for the agency, mentioned that if you paid taxes in the past two years, you can use a valid government-issued photo ID and your last tax return for verification.

The agency also encourages taxpayers to utilize a new AI-driven chatbot for any questions they might have.

Miner added that self-employed individuals have until April 30 to determine any money owed, though the filing deadline is set for June 15. Even with this extended timeframe, any owed amount has to be settled by the end of April to avoid incurring interest.

“Even if you have extra time to file, you still need to estimate and pay your taxes,” Miner stated.

Experts caution against rushing to file as soon as the tax portal opens.

Miner noted that many may not receive all tax bills until March.

Your filing speed might depend on how confident you feel that you have everything you need. If your situation is straightforward—say, just a T4 and you anticipate a refund—filing early shouldn’t cause any issues.