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As the 2025 personal tax season approaches, Canadians must prepare to file their 2024 income tax returns. We know this period can be stressful for many, and as a result, we wanted to share a few helpful tips that can streamline the process and reduce stress.
1. Be Aware of Key Tax Deadlines
The first thing we suggest doing is marking important dates in your calendar is crucial to avoid late penalties and interest charges. For 2025, these dates would be:
- February 24, 2025: The CRA begins accepting online tax returns for the 2024 tax year.
- April 30, 2025: Deadline for most individuals to file their income tax and benefit return and pay any taxes owed. Filing and paying on time helps avoid late-filing penalties and interest.
- June 15, 2025: Deadline for self-employed individuals and their spouses or common-law partners to file their returns. However, any taxes owed must still be paid by April 30, 2025, to avoid interest charges.
2. Stay Informed About Tax Changes for 2025
There are a few tax changes that may impact your personal tax filing. The most common of these are:
- Basic Personal Amount (BPA): For 2025, the BPA has increased to $16,129, allowing individuals to earn this amount before paying federal income tax.
- Home Buyers' Plan (HBP) Withdrawals: The HBP withdrawal limit has increased from $35,000 to $60,000 for withdrawals made after April 16, 2024.
3. Organize and Review Your Financial Documents
With your calendar marked and an understanding of all recent changes, its time to gather all necessary documents before filing can prevent errors and omissions. These documents include:
- Income Slips: Collect all T4 slips from employers, T5 slips for investment income, and any other relevant income statements.
- Deduction and Credit Receipts: Compile receipts for RRSP contributions (deadline was March 3, 2025, for the 2024 tax year), medical expenses, charitable donations, and other eligible deductions.
- Investment Records: Document any capital gains or losses from the sale of investments, as these must be reported on your return.
Navigating the 2025 Tax Season Successfully
By staying informed about deadlines, understanding recent tax changes, and organizing your financial documents, you can approach the 2025 personal tax season with confidence.
Taking these steps not only ensures compliance with the CRA but also positions you to maximize potential refunds and benefits.
If you have complex tax situations or require further assistance, consulting with a tax professional can provide personalized guidance tailored to your circumstances.
Located in Surrey (Cloverdale), British Columbia, since 1971, HWG, Chartered Professional Accountants proudly helps clients throughout the Lower Mainland and across Canada.
Our team of chartered professional accountants provides helpful business and personal tax services. Our continued growth proves the success of our client relationships.