Your Step-By-Step Filing Guide for Tax Season in Canada
Your Step-By-Step Filing Guide for Tax Season in Canada
Tax season may not be the most exciting time of the year, but what if I told you filing your taxes doesn’t have to be a headache? With the right directions, it can feel like checking off a to-do list rather than navigating a complicated process. Whether this is your first time filing taxes or you need a quick refresh, this step-by-step filing guide will take you through the process and take away the stress of filing.
In this blog post, I’ll share the three ways to file your taxes, how to complete your tax return, how to track your refund, and how to organize your records.
step 1 - Gather Required Documents
Before you start filing your taxes, it’s important to have all the necessary documents ready. Here’s what you need to gather:
T-slips: T4 (employment income), T5 (investment income), and T4A (pension or other income).
Income Records: If you're self-employed or earn rental income, make sure to collect all relevant income statements.
Receipts for Deductions & Credits: These can include medical expenses, donations, RRSP contributions, tuition fees, transit costs, childcare expenses, and home office deductions.
Last Year’s Notice of Assessment (NOA): This contains important carry-forward amounts and other tax details.
Personal Information: Your Social Insurance Number (SIN) and other personal details.
step 2 - Choose a Filing Method
When it comes to filing your taxes, you have three options:
Online Filing (NETFILE): This is the most popular option. You can use CRA-approved software like TurboTax, Wealthsimple Tax, H&R Block, or UFile. Once completed, your return will get directly submitted to the CRA via NETFILE.
By Mail: Download and print the necessary forms from the CRA website, fill them out, and mail them to the processing center for your province.
Through a Tax Professional: Hire an accountant or use a tax filing service such as H&R Block to handle the process for you.
step 3 - Completing Your Tax Return
To complete your tax return, follow these key steps:
Report Your Income: Include all sources, such as employment, self-employment, and investments.
Claim Deductions & Credits: These reduce your taxable income and can include RRSP contributions, moving expenses, and medical costs.
Calculate Tax Payable or Refund: CRA-approved software or tax forms will help you determine this.
Check for Benefits Eligibility: Look into benefits such as the GST/HST credit, Canada Child Benefit (CCB), and the Climate Action Incentive.
Key Deadlines:
April 30: Deadline to file and pay taxes (if you owe money).
June 15: Deadline for self-employed individuals to file (but any taxes owed are still due April 30).
step 4 - Track Your Refund or Assessment & Keep Records
Once you've filed your taxes, it’s important to track your refund or assessment and maintain proper records.
Track Your Return Status: Log into CRA My Account to monitor your return’s progress.
Review Your Notice of Assessment (NOA): The CRA will send this summary, confirming your tax return details.
Keep Records for at Least Six Years: Store your tax documents, receipts, and NOA in case the CRA requires verification in the future.
Final Thoughts
Filing taxes doesn’t have to be overwhelming. By gathering your documents, choosing the right filing method, and staying organized, you can navigate tax season with ease. If you found this guide helpful, share it with someone who might need it. Happy filing!