Five Tax Tips for a Stress-Free Filing
Ahh, tax time. It’s the most wonderful time of the year, isn’t it?
Ok, well, maybe if you’re an accountant. Or the CRA.
This tax season, we’re here to help with some tips on a stress-free filing experience.
1. Know the important dates for filing.
Mark your calendars: these are the important dates and deadlines you’ll need to pay attention to for filing your taxes this year.
March 1, 2023: RRSP contribution deadline
May 1, 2023: Deadline to file your taxes
May 1, 2023: Deadline to pay your taxes
June 15, 2023: Deadline to file if you or spouse/common-law partner are self-employed
2. Get prepared.
Dig up your receipts, get out your SIN and track down those T4s. Here’s what you’ll need to file your taxes.
- Your social insurance number, address, and other personal data.
- Income T-slips such as T4s and T5s. If you’re an employee with a company, your T4 should have been sent to you.
- Records of any other income—including self-employment income. Side-hustlers, we’re looking at you!
- Any receipts you may be able to use for tax deductions, such as medical expenses, charitable donations, childcare expenses or transit passes.
- Your Canada Revenue Agency (CRA) access code to file online or by telephone
3. Decide how to file
Wondering if you should do your own taxes, or hire someone to do it? There are a few things to consider.
First, how complex is your financial situation? If you have been employed by the same company for the last year and only have one T4, for example, and no major deductions or credits, you may find it easiest to file your taxes on your own. There are a number of online tools to help you file, and the CRA even offers its own filing tool.
However, if you have a more complicated situation, such as multiple income sources (like self-employment, rental income, investments, or business expenses), then you might want to consult a professional to make sure you file correctly.
Second, how computer-savvy are you? Most online filing tools are user-friendly and walk you through each step of filing your tax return, but if you’re not familiar with navigating computer programs, consider hiring an accountant to get the job done.
Third, how much time do you have? Filing your taxes, particularly if you haven’t done it yourself before, can be time consuming. And the last thing you want to do is rush the process and make an error. So, if you don’t have the time or simply would rather be doing something—anything—else than filing your taxes, enlist some help!
4. Know your contribution limits.
As part of your filing, you’ll need to know your RRSP deduction limit for the 2022 tax year. You can find this information by going to your most recent notice of assessment, or logging into your myCRA account. Or, you can call the CRA at 1-800-959-8281.
(And hey, if you’re reading this before March 1 — you’ve still got time to make a last-minute contribution to your RRSP).
5. Maximize your tax return.
At the end of the day, you want to make sure you’re getting your money’s worth out of, well, your money—so take advantage of all the deductions, expenses and credits you can.
If you’re not sure where to start, let’s talk. Book an appointment with us to review your financial situation—we’ll be happy to help you figure out your next move.