Your Simple Guide to Tax Season in Canada

Tax Planning

Feb 28

It’s that time of year again! Whether you’ve filed taxes dozens of times or this is your first go-around, getting organized is the best way to make the process quick and painless. Use this guide to help you gather everything you need to get your maximum refund.

Start With Last Year’s Paperwork

Before you look forward, look back. Having your 2023 Tax Return and your Notice of Assessment (NOA) from the CRA handy is a huge help.

Why? Last year’s return acts as a roadmap for what slips you’ll need this year.
The NOA: This letter from the CRA tells you important numbers, like how much you’re allowed to contribute to your RRSP and if you have any "carry-forward" amounts (losses or credits from previous years) that can lower your taxes this year.

Common Tax Slips (The "T" Forms)

Most of these will arrive in your mail or show up in your "My Account" on the CRA website. Here is a breakdown of what they are:

T4: Your proof of employment income (shows what you earned and the tax your boss already took off).
T4A: Money from pensions, scholarships, or other income.
T4A (OAS) & T4A(P): Your Old Age Security and CPP benefits.
T4E: Money received from Employment Insurance (EI).
T3 & T5: Income earned from investments, bank interest, or mutual funds.
T4RSP & T4RIF: Money you took out of your RRSP or RRIF.
T2202: Tuition fees paid for college or university.

Receipts and Expenses (To Lower Your Bill)

Keep these documents to claim deductions or credits:

RRSP Contributions: Receipts for money you put into your RRSP during 2024 or the first 60 days of 2025.
Medical & Family: Receipts for medical expenses, childcare costs, or support payments (alimony).
Donations: Receipts for money given to registered charities or political parties.
Work & Professional: Union dues not on your T4, moving expenses (if you moved for a job), and digital news subscription fees.
Self-Employed/Rental: Records of what you earned and what you spent to run your business or rental property.

Working From Home

If you work from home, the rules have changed. The "Flat Rate Method" (where you could just claim $2 per day during COVID) is gone.

The New Way: You must now use the "Detailed Method." This means you need to track your actual expenses and have your employer sign a form (T2200) to prove you were required to work from home.

Big Update: Capital Gains (Selling Assets)

You might have heard news about the "Capital Gains Inclusion Rate" increasing. This usually applies when you sell things like a second home or stocks for a profit.

The Update: The government originally wanted to raise the tax on these gains starting in mid-2024. However, they recently announced a delay.
What this means: The tax increase is now pushed back to January 1, 2026. If you sold assets in 2024, the old rules generally still apply, but it is a very good idea to talk to a tax pro if you sold a property or large investments this year.

This list covers the basics for most Canadians, but everyone’s situation is a little different. If your taxes feel complicated, don’t guess! Talking to a professional accountant or tax preparer can help ensure you don't miss out on any credits that could put more money back in your pocket.