The famous quote by Dorothy Parker reads, “I don’t like writing. I like having written.” The same is true with taxes. There is no greater feeling than “having filed,” regardless of whether you are an eager beaver or a natural procrastinator. It’s easier than you might think to get through tax season with a little preparation. What are you waiting for? Now is the time to file your taxes!
Staying prepared and organized is crucial, whether you’re filing as an individual or a business. This is especially important if you want to avoid the last-minute rush and the possible repercussions of non-compliance.
Keeping these factors in mind, we have some last-minute tax advice to help you complete the tax filing process and make sure you fulfill your responsibilities. Now is the time to take things seriously as you strive to maintain your tax obligations as tax seasondraws to a close.
Tip#01 Submit your Return on Time
Being fined for failing to file taxes is far worse than actually having to complete them. Strict deadlines are set by the CRA for payments and returns. The penalties and/or interest associated with submitting a late return apply to everyone.
Individual tax returns must be filed by April 30, 2025. The deadline for self-employed individuals to file is June 17, 2025. There’s a catch, though: starting on May 1st, the CRA will start charging interest if you owe money. File by May 1st just to be safe. You may receive your refund sooner if you file as soon as possible!
Tip#02 Claims and their Receipts
The hitch is that these claims are frequently audited, even though they are among the most profitable deductions available. To support your claims, you must have receipts! Additionally, keep in mind that real estate fees, removal expenditures, and some costs associated with transferring an unsold house to an old location can all be claimed as moving expenses. However, seniors retiring to British Columbia frequently may not qualify until they begin working or working for themselves there since there must be generated income at the new place.
Tip#03 Keep Records of the Necessary Paperwork
Make sure you have all the necessary paperwork on hand before you file your taxes. You must collect all required documentation to properly file your tax return, including:
- Receipts for credits and deductions
- T4 slips (for income from employment)
- Slips for RRSP contributions
- T5 slips (for income from investments)
- Any other tax papers or slips
Additionally, if you are a business, you should ensure that you have the following available:
- GST Documents
- Records of Business Assets
- Financial Statements
- Receipts for Business Expenses
- Sales records and invoices
- Payroll Documents
You may expedite the tax filing process and reduce the possibility of overlooking crucial information that influences your tax obligations by arranging and gathering these documents in advance.
Tip#04 Examine your Tax Deductions and Credits
To reduce your tax obligation and optimize your possible tax savings, tax deductions, and credits are essential. You may maximize your tax return and possibly lower your tax liability by carefully examining and identifying the different credits and deductions that are available to you. As you get ready to submit your tax return, keep the following important tax deductions and credits in mind:
- Contributions to RRSPs
- Donations to Charities
- Health Care Costs
- Costs of Childcare
- Interest on student loans and tuition costs
You may maximize your tax return and possibly lower your tax liability by carefully examining and determining the different tax deductions and credits that are available to you.
Tip#05 Create a My Account on CRA
Being in the grocery store’s express checkout line is similar to owning a CRA My Account. It’s the simplest, quickest, and safest method for organizing, retrieving, and reporting all of your crucial tax records, including your benefit payments and T4 slips. Signing up only takes five minutes, and your future self will appreciate it when you receive your refund sooner after establishing direct deposits.
Tip#06 Look for Cross-Family Transference Provisions
The following are frequently overlooked or reported inaccurately: charitable donations, age amounts, disability amounts, tuition and education credits, spousal amounts, pension income amounts, and political contributions. Families should therefore file their taxes together, beginning with the lowest income earner and working their way up to the highest. Families will be forced to concentrate on optimizing their RRSP contribution planning for the upcoming tax year as a result of this strategy. Keep in mind that the RRSP deduction lowers family net income, which is the basis for refundable tax credits such as the Child Tax Benefit.
Tip#07 Prevent Last-Minute Erors
Since most tax return issues are the result of negligence, they are also frequently the easiest to avoid. However, even the most basic errors can cause a refund to be delayed.
Flustered filers most frequently make the following three mistakes:
- Math mistakes (which can be easily avoided with tax software or a calculator)
- Social Security numbers that have been written wrongly (be careful to proofread)
- not dating or signing the tax return
Tip#08 Maintain Thorough Company Documentation
Tax season is rarely enjoyable, but sifting through jumbled paperwork can make it even less enjoyable. Maintain meticulous records of every business transaction, including revenue, costs, invoices, and receipts. You must maintain precise documentation of your business revenue transactions and expenses following Canadian federal law, and the Canada Revenue Agency (CRA) may request them at any time. However, being organized also enables you to determine whether you qualify for credits and deductions that could lessen your overall tax liability and move you into a lower tax bracket.
If you are audited by the CRA, a clear paper trail also enables you to support your claims. Accounting or bookkeeping software can help you expedite the procedure, reduce errors that appear in a new tab, and make it easier to support your claims if the CRA requests to view them later.
Tip#09 Recognize Your Rights as a Non-Resident
You may have a job in Canada, but you don’t have any close family or friends there. If so, unless all or a portion of the income is exempt under a tax treaty, you are liable for Canadian income tax on the majority of income paid or credited to you over the year that comes from Canadian sources. Therefore, you might also benefit from the information in this tax advice!
Tip#10 Make the Appropriate Tax Payment
Inquire as to why you were given a refund. That’s like lending your money to the government year-round without paying interest. Consult your tax advisor and employer if you believe that too much tax is being withheld at the source. There are frequently ways to lower withholding taxes so that the return goes straight to your own RRSP or additional investment accounts, allowing you to increase your savings instead.
Why Choose Clearwealth for this Tax Season 2025?
When you decide to join Clearwealth, you are not hiring a mere tax preparation service provider; instead, you are hiring a team of professionals who are passionate about helping you save more. Whether you are looking for some tips before filing your tax returns or you require a detailed financial planning service, we are here for you to make the best use of the opportunities. It is our pleasure to assist you by taking care of the complications that you may encounter so that you can attend to other important issues.
Get in touch with us at (437) 290-5117 or email us at info@clearwealth.tax and find out how we can assist you in reaching your financial targets with confidence!
