Over 16 million income tax returns had been filed for the 2025 tax year as of April 12.
According to the Canada Revenue Agency (CRA), 9.9 million refunds totaling over $22 billion have already been issued.
For most who haven’t filed yet, the deadline is April 30. That’s when the meter starts running for those who owe money, even the self employed and their spouses, whose formal filing deadline is June 15.
The penalty is five per cent of any balance owing, plus one per cent of the balance owing for each full month the return is late. After a year the penalties increase.
There’s still time left but here are some key last minute tax tips compiled by tax experts:
File on time even if you can’t pay your tax bill.
- The rules say April 30 is the deadline regardless of who owes who, what. The CRA wants to know what you’re up to and it tells them you are aware of the situation.
File a tax return even if you don’t think you have to.
- There are many reasons why you must file a tax return but benefits like the Canada Child Benefit, Guaranteed Income Supplement (GIS) and the GST/HST tax credit, are based on your tax return and you can only qualify if you file a return. Also, you might have a refund coming your way if your earnings were such that you overpaid with your tax withholdings from your paycheque. This often happens with students, especially with tuition tax credits.
Make sure that you are maximizing all of the allowable deductions and tax credits available to you based on your personal situation. This includes registered retirement savings plan (RRSP) contributions and childcare deductions, or medical and tuition non-refundable tax credits.
- Medical expenses, for example, can span any 12-month period as long as it ends during the tax year. Depending upon your situation in 2025, or even the current year, you can plan your claim accordingly to maximize your return.
- If your kids are attending an eligible education institution, such as college or university, remind them to log into their student account at their school and download their T2202 forms. Even if they are not earning money now, they must file their return to declare tuition expenses. They can either carry forward the unused amounts to another tax year or transfer up to $5,000 to parents or even grandparents.
Make sure you have your direct deposit information on your CRA My Account so you can get your refunds and any other paid benefits quickly. If you don’t have a CRA My Account, sign up.
- If you are self-employed don’t forget your business use-of-home expenses. You can also claim work-related vehicle expenses. Remember to maintain a mileage log to validate the use. It’s important to understand that a side gig is considered a business entity for tax purposes and requires a separate filing in addition to your basic T1 personal return.
In most cases, the CRA requires a T2125 Statement of Business or Professional Activities, which includes a tally of total income generated from the business during the year and direct business expenses that qualify as deductions such as office expenses, tools and equipment, advertising, meals and travel.
CRA provides specific industry codes that should match your primary business activity. If you have more than one distinct business, a separate T2125 must be filed for each.
If you file your return and realize you’ve made a mistake, don’t panic. The CRA allows for adjustments on returns, which can be done through your CRA My Account under “Change My Return” or using a refile option on your tax solution if it is available. You can also complete the T1-ADJ request form and mail it in but you need to wait until you get your notice of assessment first.
