How to Prepare and File Personal Tax in Canada

By dellendoOn October 5, 2023October 5, 2023

How to Prepare and File Personal Tax in Canada

Filing personal taxes in Canada can be a daunting task, but with the right information and preparation, it can be a smooth process. Here are the steps to prepare and file personal tax in Canada:

Step 1: Gather all the necessary documents.

Before filing your taxes, you need to gather all the necessary documents such as T4 slips, receipts, invoices, and other supporting documents. You can use a tax checklist to make sure you have all your information in one place, which will make filing taxes fast and accurate.

Step 2: Determine your tax filing obligations

You need to determine your tax filing obligations and income tax status in Canada. If you are a resident of Canada for income tax purposes, you’ll need to file tax returns for any tax year in which you have to pay taxes.

Step 3: Choose how you want to file your taxes

You can file your taxes online or by paper or find other options such as having someone else complete them for you. Options include:

NETFILE-certified tax software (electronic filing)
Through a tax preparer using EFILE-certified tax software (electronic filing)
Community volunteer tax clinic
Paper tax return
File my Return
Automated phone line (by invitation only)

Step 4: File your taxes

You can file your taxes online or by mail. If you want to mail your tax return, request a copy of the paper filing package from the CRA. If you want to file your taxes online, create an account with a tax preparation tool like TurboTax. If you’d prefer to hire an accountant, ask for an appointment.

Step 5: Pay any taxes owed

If you owe income tax, you must pay it by April 30 for the previous tax year. If you are employed in Canada, your employer must withhold and remit to the CRA statutory deductions from your wages.

Step 6: Keep your CRA information up-to-date

Update your CRA information such as your address, marital status, name, or other personal information with the CRA. Register for direct deposit and keep it up-to-date to get your payments and refunds faster.

Frequently Asked Questions

Do you have to file an income tax and benefit return?

You should file an income tax and benefit return if you have to pay tax, want to claim a refund, or receive benefits1.

What documents are required to file personal taxes in Canada?

To file personal taxes in Canada, you need to gather all the necessary documents such as T4 slips, receipts, invoices, and other supporting documents. The documents required vary depending on the individual, but the following are a good place to start the gathering process:

Social Insurance Numbers for you, your spouse, and any dependents (if applicable)
Dates of birth for family members
Net income amounts for your spouse and any dependents for whom you’re claiming credits such as the Canada Caregiver Amount
The total amount of installment payments made to CRA
Notice of Assessments from last year’s return
Any US federal or state filings for the year
Your T4 slips (Employment income) for the year(s) in question
Employment insurance benefits (T4E)
Interest, dividends, mutual funds (T3, T5, T5008)
RRSP contribution receipts
Calendar showing dates you were outside of Canada that year
Bank interest received in Canada that year
Any capital gain statements
Any rental income and expenses

How to obtain a T4 slip in Canada?

To obtain a T4 slip in Canada, you have several options:

Ask your employer: Your employer is required to provide you with a T4 slip by the end of February for the previous tax year. If you have not received your T4 slip, contact your employer to request a copy.
Request a copy from the Canada Revenue Agency (CRA): If you need a copy of your T4 slip for the current or previous tax year, you can request it from the CRA. You can do this by calling the CRA at 1-800-959-8281 or by using the CRA’s My Account service online.
Use the “Auto-fill my return” service: The CRA’s “Auto-fill my return” service allows you to access many of your tax forms, including T4 slips, online. To use this service, you need to have a CRA My Account and a NETFILE-certified tax software account.
Check your email: Some employers may provide T4 slips electronically, so check your email to see if your employer has sent you a digital copy.

It is important to keep your T4 slip as it contains important information that you will need to file your taxes.

What happens if I don’t file my taxes?

If you don’t file your taxes, you may face penalties and interest charges. The CRA may also take legal action to collect the taxes owed. It is important to file your taxes even if you have no income, as doing so will provide you with access to information and benefits.

What if I make a mistake on my tax return?

If you make a mistake on your tax return, you can correct it by filing an adjustment request with the CRA. You can do this online using the CRA’s My Account service or by mail. It is important to correct any mistakes as soon as possible to avoid penalties and interest charges.