The Canadian tax system has more than 400 different credits and deductions. You would be forgiven, then, if you miss something when preparing your taxes each year. It can already be complicated for a single person, but once you add in family members, or situations like self-employment, it just grows more complicated.
It doesn’t really matter if this is your first time or your tenth time doing your taxes. Whatever the case may be, you will benefit from being organized and that includes making a list to ensure that you are not forgetting anything. To help you do that, we offer some tips below.
You already know the basics of what you should be including, such as your date of birth and social insurance number. You will also need this same information for your spouse and any dependents you might have.
Certain credits might require additional information, such as the Canada Caregiver Amount, which will require you to provide your dependent’s net income. Also, if you are claiming a tuition transfer from your spouse or child, you will need certain figures from their completed returns.
It is also worthwhile to keep the previous year’s Notice of Assessment handy, as it not only serves as a useful guide, but because it can show you any unused amounts from tuition, capital losses and refund interest. This and more information is available through your CRA MyAccount.
INCOME AND DEDUCTIONS
Gather all necessary information pertaining to your income. If you worked a traditional job under an employer, then you will need your T4. If you earned your income by running your own business or through ride-sharing, be sure to have all the details of your income and related expenses.
There are other types of income to consider as well. These include:
- Dividends or income from investments
- Spousal support
- Pension income
- Social assistance
- Workers compensation benefits
- Income from rental properties, or the rental of rooms in your home
- Employment insurance
- RRSP withdrawals
- Tips and gratuities
You may have any number of a wide range of deductions and credits available to you, depending on your particular situation. For example, if you are required to relocate for your job, you may be able to claim your moving expenses. If you are caring for a disabled relative, you may get a break through the Canada Caregiver Amount.
Take the time to gather and prepare all the information required for potential deductions. This would include such things as RRSP contributions, medical expenses, daycare costs, charitable donations, and tuition payments.
To give you some idea of what you might need, our personal tax checklist will help guide you. You will also find checklists for rental income, self-employed and those with employment expenses.
Keeping a checklist will help to ensure that you don’t overlook anything. There is a great deal to keep track of when it comes to your taxes, so being prepared and organized is in your best interest.
***This blog is for information only and not to be used as tax advice or planning without first seeking professional advice. Information is subject to change without notice.