The official opening of tax-filing season gets underway with electronic filing service Netfile set to open on Monday, Feb. 24, 2025. Canada Revenue Agency (CRA) national headquarters is seen in Ottawa on Friday, June 28, 2024.
It's that time of year again—gather your receipts and get ready to file your taxes! The Canada Revenue Agency’s (CRA) electronic filing service, Netfile, officially opens on Monday, marking the start of the Canada tax season 2025.
Get Organized: Start with the Messy Part
Before you begin filing, tax expert Brian Quinlan, a partner at Allay LLP, suggests tackling the "messy part" first. This means gathering receipts and documents not readily available on the CRA website, such as:
- Medical expenses
- Charitable donations
- Child-care costs
- Union dues
On the other hand, T4 (employment income), T4A (pensions), T5 (interest and investments), and T3 (trusts) are usually accessible through your CRA MyAccount. Many of these forms now come electronically from banks or employers, making it easier to retrieve them even if they were misplaced.
"Even if you moved or didn’t receive a slip, chances are it’s on CRA’s website," says Quinlan.
Key Tax Deadlines
- April 30 – Tax filing deadline for most Canadians
- June 16 – Extended deadline for self-employed individuals (since June 15 falls on a weekend)
- March 3 – Last day to contribute to an RRSP for the 2024 tax year
Self-employed individuals should keep in mind that interest on any taxes owed starts accumulating after April 30, even though the filing deadline is in June.
Major Changes This Tax Season
Capital Gains Inclusion Rate Delayed
A significant change this year is the postponement of the capital gains inclusion rate hike. Originally planned for 2024, the increase would have taxed two-thirds of capital gains over $250,000. However, the government has deferred the change to 2026, meaning for now, 50% of all capital gains remain taxable, the same as in 2023.
Due to this adjustment, the CRA will not accept tax returns that include capital gains or losses until late March. To accommodate the delay, the agency is granting interest and penalty relief until June 2.
Extended Deadline for Charitable Donation Receipts
Another change involves charitable donations. Because of last year’s Canada Post strike, many charities experienced lower donations in December. To compensate, the federal government has extended the donation receipt deadline by two months.
This means any donation made in January or February 2025 can be claimed on either the 2024 or 2025 return, offering greater flexibility to taxpayers.
Maximize Your Return with Smart Tax Planning
When claiming tax credits, some can be grouped or transferred between spouses and dependents. For example:
- Charitable donations – Combining them into one tax return can increase the deduction.
- Medical expenses – Pooling them together may lead to a higher claim.
- Tuition credits – Can be transferred from a student to a parent with a higher income.
According to Quinlan, tax filing should be a family strategy rather than an isolated process. "Don’t be a selfish tax planner—look at the entire family’s returns to maximize refunds," he advises.
Don’t Miss Out on Benefits
Tax specialist Yannick Lemay from H&R Block warns that there are over 400 tax credits and deductions available, making it easy to overlook some.
One common misconception is that filing late doesn’t matter if you don’t owe taxes. However, Lemay stresses that even those with zero income should still file, as it determines eligibility for key government benefits such as:
- Canada Child Benefit
- GST/HST Tax Credit
- Canada Carbon Rebate
"Missing the deadline could result in lost benefits or penalties, even if you don’t owe taxes," Lemay explains.
Final Thoughts
With tax season officially here, early preparation and smart planning can help you avoid last-minute stress and maximize your refund. Stay updated on new tax rules, organize your receipts in advance, and file on time to take full advantage of available credits and benefits.
