10 essential tax tips to help you prepare for tax season in Canada

Filing your taxes doesn’t have to be daunting. With the right approach and preparation, you can turn it into a smoother, more rewarding experience. From organizing financial documents to maximizing RRSP contributions and claiming work-from-home expenses, this guide offers actionable tax tips to help you prepare for filing your Canadian income tax return.

Whether you’re filing income tax on your own using software or enlisting professional help, these tax tips for Canada in 2024 can help ensure you make the most of your return. However, it doesn’t provide specific tax advice, as filing depends on your unique financial situation.

1. Organize your financial documents year-round

Preparation is key. Start by creating a system for categorizing receipts, bills, mortgage papers, and credit card statements, whether using an accordion file or accounting software. Keeping and organizing all financial documents ensures you have the necessary proof to substantiate claims and deductions. This practice reduces stress during tax season and minimizes the risk of overlooking important details that could impact your tax result.

Staying proactive year-round prevents the dreaded last-minute scramble. Reviewing and updating your financial records regularly ensures accuracy and reduces the risk of errors when filing. It also gives you more time to explore and claim eligible credits and deductions, while maximizing your tax savings.

If you’ve done this already, you’re well on your way to a much easier, painless process. If you missed out this year, don’t sweat it. Keep this in mind for next year and start now as you prep for the next tax filing season.

2. Know your tax deadlines

Mark your calendar with key dates. For most Canadians, the 2024 income tax filing deadline is April 30^th, 2025 and any balance owed is also due on that date. If you or your spouse/common-law partner are self-employed, you have until June 15^th, 2025 to file your return.

Set reminders to give yourself ample time to prepare. Most people aim to file their taxes as early as February to secure quicker refunds and avoid last-minute stress. Others, who wait until April, risk a rush to meet the deadline. Filing early not only ensures peace of mind but also provides ample time to address any issues or missing documents that may arise. Make sure to file your return before the deadline to avoid late filing penalties.

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3. Research available tax credits and deductions

Tax credits and deductions can significantly impact your tax outcome. They can help reduce the amount of taxes you owe and may increase your refund by accounting for qualified expenses incurred within the year. Understanding and utilizing these opportunities ensures you retain more of your income while meeting Canada Revenue Agency (CRA) requirements.

Some highlights for the 2024 income tax return include:

• Canada workers benefit (CWB): A refundable tax credit for low-income workers.
• Canada Child Benefit (CCB): Provides tax-free monthly payments to eligible families to help with the cost of raising children under 18.
• Canada training credit: If you are between 26 years old and 64 years old at the end of 2024, you can claim eligible tuition fees paid to select educational institutions providing courses at a post-secondary level or occupational skills courses.
• Disability Tax Credit (DTC): A non-refundable tax credit designed to help people with disabilities or their supporting family members to reduce the amount of income tax they may owe.
• Provincial and Territorial Benefits: Additional credits and benefits that vary by province, such as rent or property tax credits.

Maximizing credits requires staying informed on what’s available in your province and your unique circumstances. Remember these tax credits and deductions have eligibility requirements and don’t apply to everyone. Learn more about the Canada tax credits and benefits you may be eligible for.

4. Leverage medical expense claims

While you might have insurance through an employer or parent, many still have to pay at least a portion out of pocket for certain procedures or prescriptions. Maybe your dental plan, for example, covers 80% of the cost, but you need to pay the remaining 20% yourself. For major dental work, that could equate to hundreds, even thousands, of dollars.

Eligible medical expenses can reduce your taxable income. These expenses must exceed the lesser of 3% of your income or $2,635 (in 2024). Keep receipts and detailed records to substantiate claims. Review the CRA’s list of eligible medical expenses, which includes travel costs for medical care unavailable locally. Even partial reimbursements can result in meaningful tax savings.

5. Maximize RRSP contributions

Contributing to your Registered Retirement Savings Plan (RRSP) is one of the most effective ways to lower your taxable income, reducing the overall taxes owed and allowing your investments to grow tax-deferred until withdrawal. Contributions made before the deadline, March 3^rd, 2025, apply to your 2024 tax return.

6. Claim work-from-home expenses

Claiming work-from-home expenses can provide valuable tax savings, especially for employees who meet the eligibility criteria. The CRA allows you to deduct a portion of home expenses directly related to employment using the detailed method. You can claim certain expenses related to the use of a workspace in your home, as well as office supplies and utilities. While salaried employees can deduct specific work-related costs, commission employees may also claim additional eligible expenses, like home insurance and property taxes.

Work-from-home tax claims help offset the financial impact of maintaining a home office, ensuring employees are not overburdened by work-related costs. There are however limitations to this tax claim. Learn more about work-from-home expenses you can claim.

7. Don’t overlook side hustles and business deductions

If you’ve ventured into the gig economy in 2024, remember to claim deductions for business expenses. Eligible costs include home office expenses, supplies, advertising, and travel for client meetings. You shouldn’t start a business because of the tax benefits. But if you have done so, make sure you benefit from the tax deductions that come with being a small business owner or sole proprietorship.

Ensure accurate reporting, as side hustle income is taxable, but strategic deductions can significantly offset it. Take advantage of CRA guidelines specific to sole proprietors. Use accounting software to track income and expenses throughout the year.

8. Optimize filing with your spouse

Sometimes it’s best to do your taxes together with a spouse and pool expenses. And other times, it might make more sense to do them on your own. But really, no matter your marital status, everyone must file their taxes individually. That said, if you are married or in a common-law relationship, make sure to divide up the expenses appropriately. Filing strategically as a couple can unlock significant tax advantages. Discuss your financial situation with your partner to ensure you’re maximizing available benefits.

9. Use tax software or get professional help

Tax software is an excellent choice for straightforward filings, especially for individuals with simple returns. It offers user-friendly guidance and ensures no deduction is overlooked. Most software providers have customer service personnel and help tools that can provide assistance, answering questions or clarifying things you might not be sure about. Help is usually just a click or phone call away, and the answer is often simple enough that you can solve the issue in mere minutes.

Using a tax software is particularly beneficial for those comfortable navigating digital platforms and looking to integrate features like the CRA’s Auto-Fill My Return for added convenience.

For more complex tax situations—such as managing investments, multiple income streams, or rental properties—it’s wise to seek professional help. Tax professionals can offer tailored advice, ensure compliance with evolving tax regulations, and uncover savings opportunities that software might miss. Many advisors provide free consultations to evaluate your needs, making it easier to decide whether their services are a good fit for your situation.

10. Prepare for next year with tax planning

Planning ahead is the best way to avoid stress. Create a digital or physical folder to organize receipts and statements as you receive them. Schedule quarterly reviews to track income, deductions, and tax credits. This habit keeps you informed about your tax position and prevents surprises. Staying proactive ensures smoother filings year after year.

File your 2024 income tax return with ease

With these tips for taxes, you’ll be well-prepared to file accurately and maximize your eligible benefits. Remember to start early to avoid last-minute stress, and stay organized to ensure no important details are overlooked. Use tax tools and software to simplify the process. Visit Best Buy Canada to explore tax software options that can streamline your filing experience and help you maximize your return.