File Taxes? Canada Tax Checklist this Tax Season

Canada Tax Checklist has been updated for 2023.  Stay organized and get a head start on this tax season with this list of forms and receipts you’ll need to file your taxes.

What documents do I need to file my taxes?

Imagine this. You have to file your taxes in time.  If you think you owe taxes, you have to file in order to avoid interest and penalties.  If you think you will be getting a refund, having the money in your pocket is better than having CRA hold it, interest free!

In this article, we’ll go through everything you need to have handy when filing your taxes.

What's new in 2024?

Personal Information

To get started, you will need to have the following on hand to prepare a tax return:

• Social Insurance Numbers for you, your spouse, and any dependents (if applicable)
• Notice of Assessment from last year’s return. Along with acting as a guide for this year, you’ll also find your unused amounts for tuition, losses, moving expenses, and capital cost allowance.
• 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, which is one of many you may be entitled to.
• If you’re claiming a tuition transfer from your spouse or child, keep a copy of their completed return handy as you’ll need to enter a few different amounts from it.
• The total amount of installment payments made to CRA
• If you traded crypto currencies, you need to have transactions records.  

Crypto Taxes

If you have been trading and holding crypto since 2016, Canadian resident taxpayers must file Form T1135 with CRA if the total cost of all of their specified foreign property (including cryptocurrency) is more than $100,000 and a failure to do so could result in a tax assessment with significant penalties being issued to the taxpayer by CRA.

Talk to us about calculating and analyzing your preview tax returns and records in order to be tax compliant. To learn more about what records you need, read our article: Here's Why You Need Records to File Taxes

Generally speaking, holding (HODL) crypto currency does not incur a tax event.  However, as soon as you trade or stake or invest it in DeFi, there may be a taxable event. 

Read More: Cryptocurency Myths. Reduce your Frustrations

Check out our Ultimate Guide to Filing Crypto Taxes

Income Slips

Every taxpayer is different, below is a list of documents that you may need to gather. 

Employment

• T4 Statement of Remuneration Paid
• RL-1 Employment and Other Income (QC only)
• Other Income

Self-employment

• T2125 Statement of Business or Professional Activities

• T5013 Statement of Partnership Income
• Rental income (and expenses as a part of your T776- Statement of Real Estate Rentals form)

Savings and Investments  

• T5 Statement of Investment Income
• T3 Statement of Trust Income Allocations and Designations
• T5008 Statement of Securities Transactions
• Capital Gains including the sale of your principal residence.
• Amounts for carrying charges and interest expenses related to your investments. This includes fees for managing your investments.
• Home Buyers’ Plan, and Lifelong Learning Plan repayment amounts.

Retirement

• T4A Statement of Pension, Retirement, Annuity, and Other Income
• T4RIF Statement of income from a Registered Retirement Income Fund
• T4A(OAS) Statement of Old Age Security
• T4A(P) Statement of Canada Pension Plan Benefits
• T4RSP Statement of RRSP Income

Social Benefits and Employment Insurance

• T5007 Statement of Benefits – Workers Compensation or Social Assistance benefits
• T4E Statement of Employment Insurance and Other Benefits
• T4A COVID-19 Benefits received – CERB, CRB, CRCB, etc.

Expense Receipts for Credits and Deductions

Work-related Expenses

• Union dues not included on your T4 slip
• T2200 Employment Expenses (signed by your employer)
• In-home office expenses
• Tool expenses

For Families

• Support payments made
• Childcare expenses
• Adoption expenses

For Students

• Tuition slips
• Student loan interest amounts

For Homeowners and Landlords

• Capital Cost Allowance (CCA)
• Home accessibility expenses
• Moving expenses

Other Common Expenses

• Charitable donations
• Medical expenses
• Personal attendant/facility care expenses
• Political contributions
• Exams for professional certification
• Digital News subscription expenses
• Receipts for classroom/school supplies (teachers and early childhood educators)

Each province may have different refundable and non-refundable credits. 

Does CRA need original receipts?

When filing a tax return it’s important to keep all your receipts and documents in case the CRA requests to see them at a later time. 

Other Documents/Information

It’s also important to keep tax documents from previous years for 7 years. Prior year documents may be needed to check prior carry-forward amounts gains and losses. For example:

• Last year’s notice of assessment from the CRA
• RRSP deduction limit and unused amounts
• Tuition carry forward amounts
• Loss carry forward amounts
• Other CRA correspondence
• Other carry forward amounts (business-use-of home, donations, etc.)

What’s are the next steps for taxes? 

The key to having a successful tax season is to be organized. Open a file for each year.  Put all your documents into that folder.  If you think that you may lose it in your inbox, consider printing it out and place it in the tax folder.  

If you’re someone who may forget where the money came out from, use highlight and symbols to circle the amounts.  For example, if you’re a crypto currency investor or trader, you can circle the amount and the exchange that it went into.  This way, as time goes by, you can easily reference it later should CRA want to audit your return and your documents backup.  

Above all, talk to a team of tax experts because when you pay someone for advice, that advise will be customized for your particular, and unique needs. This ensures that tax season is as efficient as possible for you, while getting the best refund possible.