Are You Ready for Taxes?

Written By Ronika Khanna

Hello All,

It's almost official - CRA will open up its efiling portal and start to allow you to file your tax return starting February 24th.

Most of you have until April 30th this year to file your tax return (unless you have business income - see below). If you owe tax and don’t file by the deadline, CRA will charge you a penalty plus interest on the amount of tax payable.

If you don’t owe tax or are expecting a refund, you won’t incur penalties, but your benefits (like the GST credit or child care benefits) could be delayed. There are a number of other reasons that every Canadian should file a return which I cover in this post.

Types of Tax Documents Before Filing:

Some of the more common tax documents/slips that you will need for your filing:

  • T4 (RL1 in Quebec) – If you earned a salary

  • T5 (RL3) – Investment income for non registered account (no income slips for TFSA or RRSPs)

  • RRSP contribution receipts

  • Medical expenses & donation receipts

  • T5008 – Shows capital gains and losses on sale of investments

  • Childcare expenses – Receipts from daycare or babysitters

  • Professional dues

  • Tuition receipts (T2202A)

If you’re missing a tax slip, check with your provider—it may have gotten lost in the mail or buried in your emails.

CRA also has a tool called AutoFill My Return, where you can download info they already have on file, like your T4 and T5. Most tax software will allow you to access this feature, thereby simplifying the return preparation and reducing input errors.

Getting Organized

Even if you aren’t ready to file yet, now is the time to gather your documents. I always recommend setting up a physical folder and a tax/accounting folder on your computer for anything that might be relevant to your taxes.

Guidance for Unincorporated Small Business/Self-Employed

If you're self-employed or run an unincorporated small business, your tax return is a little different than if you are simply an employee or retired. Here’s what you need to keep in mind:

Income Tax Deadline

The deadline to file your return is usually June 15 (although this year it is June 16th since June 15th falls on a weekend).
But if you owe tax, interest starts accruing on May 1—so it’s still best to file and pay early.

GST/HST

If you're registered for GST/HST, note that this is a completely separate return from your income tax return.

Filing the GST/HST can be done via your CRA my business account or GST/HST/QST via RQ my account for business (clic sequr) or by using online business banking.

Your filing deadline depends on your reporting period:

  • Annual filers (most self-employed people) – Return is due June 15th, but payment is due by April 30th.

  • Quarterly/monthly filers – Due dates are one month after the end of your period.

Not paying your GST/HST can result in significant penalties so make sure that you pay this on time.

Business Accounting

Unlike employees, self-employed individuals don’t get a T4—you’re responsible for reporting your own income and expenses.

Make sure you have:

  • Total sales for the year (invoices, QuickBooks reports, Stripe/PayPal summaries)

  • Business expenses categorized (home office, vehicle, supplies, software, etc.)

  • Receipts for deductible expenses (even digital copies work)

It helps to have separate business bank and credit cards so that all expenses and sales are in one place.

DIY or Hire Someone?

Many Canadians have fairly straightforward tax returns, and I’m a big believer in doing your own taxes if they’re simple and the thought of it isn't overwhelming.

If you are contemplating doing it yourself, I recommend entering your info into a tax software first. Since you only pay when you submit the return, there's no risk to seeing how it all looks. Doing it yourself is an achievement, helps you better understand your finances and you won’t be left wondering if your tax preparer missed something.

That said, if your return feels complicated (especially if you’re self-employed) or overwhelming in any way, it certainly makes sense to hire a tax preparer or accountant.

tax season Content

📖 Small Business Tax Facts – A straightforward guide to navigating small business taxes in Canada, covering key rules, common mistakes, and must-know tax essentials for sole proprietors/self employed owners.

📚 GST/HST (and QST) Made Simple (Course) – A comprehensive, step-by-step course that walks you through everything you need to know about GST/HST—when and how to register, how to charge it correctly, claim input tax credits, and file your returns with confidence.

🎥 GST/HST (and QST) Masterclass – A clear, practical breakdown of GST/HST essentials, including when to register, how to calculate and file correctly, and how to avoid costly mistakes. Plus, guidance on the Quick Method and record-keeping best practices to simplify compliance.

📊 Small Business Guide to Maximizing Tax Deductions Masterclass – Learn how to maximize your tax deductions, reduce your tax bill, and avoid common mistakes when claiming business expenses.

Related content

Article: Detailed guide for your taxes: A simple guide to organizing your taxes

Video: How to get your CRA Web Access Code

Video: How to quickly adjust/writeoff inventory in QBO

Video: How to Navigate CRA My Business Account

** Help me reach 1,000 subscribers! If you find my videos helpful, subscribe to support the channel and stay updated on new content.

articles of Interest

AutoFill Your Return: CRA has more information about prepopulating your return with information it already has. This can be a huge timesaver.

T4/T5 Submission Issues - deadline extension: Those of you doing T4/T5 submissions for yourself or clients may have encountered some issues (there are a number of changes this year that have been badly implemented by CRA). Consequently, they have extended the deadline to file slips to March 17th instead of February 28th.

Carbon rebate are taxable: Despite a comment from the former finance minister that small businesses would not have to pay tax on carbon rebates, no action has been taken. Consequently, these are still taxable.

What you need to know about tax season this year: From deadlines to capital gains and CPP, some key pieces of information to help with taxes.

Charitable Donations Extension: Due to the postal strike which impacted charities ability to send out year end donation drives, CRA has extended the deadline for individuals to claim eligible donations made up to February 28 on their 2024 personal income tax return. They can also still claim them on their 2025 return, or during the normal five-year carryforward period.

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Ronika Khanna

Ronika Khanna is a Chartered Professional Accountant (CPA), Chartered Financial Analyst (CFA), and the founder of Montreal Financial. Her previous experience includes roles at PwC and ING both in Montreal and Bermuda.

She started her business 15 years ago with a focus on accounting, finance and tax for small business owners, startups, freelancers, and the self-employed. As a small business owner herself, Ronika leverages her firsthand experience to offer practical advice and bring clarity to complex financial concepts.

She has been featured in media outlets such as CBC, the Toronto Star, and The Globe and Mail and has authored several books to help small businesses with their finances.

You can connect with her via her biweekly newsletter, Twitter, YouTube, and Linkedin.

She also offers consultations to small business owners and individuals who want personalized guidance.

https://www.montrealfinancial.ca/about
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