Tax season comes with deadlines, documentation, and opportunities to optimize your refund. Here’s a practical overview to help you stay organized, avoid costly mistakes, and make the most of available deductions and credits.
Important Deadlines to Remember
Did you know?
- RRSP contributions must be made within the first 60 days of the year to be deductible on the previous year’s tax return
- FHSA contributions must be made by December 31 of each year
- You must file both a federal and a provincial income tax return
- You are required to keep all supporting tax documents for six years
Tip
Mark key tax deadlines in your calendar early in the year to avoid missing out on deductions.
Employment Expenses: What You Can Deduct
If you worked from home or incurred job-related expenses, you may be eligible for deductions using the detailed method.
Key Requirements
- You must have a T2200 form signed by your employer
- Expenses must not be reimbursed by your employer
Eligible Expenses Include:
- Office supplies used for work (paper, ink, etc.)
- A reasonable portion of home expenses, such as
- Utilities
- Internet access
- Rent (for tenants only—not mortgage payments for homeowners)
- Maintenance and minor repairs
To calculate your deductible amount, you’ll need:
- The size of your workspace
- The percentage of time the space is used for work
The Canada Revenue Agency (CRA) website provides guidance on how to calculate this proportion.
Tip
Keep receipts and records throughout the year—it makes calculating and supporting your claim much easier.
What Information Do You Need to File Your Tax Return?
To ensure an accurate and complete return, gather the following documents:
Income and Investment Documents
- Employment income (T4, RL-1)
- Employment insurance benefits (T4E)
- Pension and annuity income (T4A, RL-2)
- Investment income (T5/RL-3, T3/RL-16, T5008/RL-18)
Savings and Retirement
- RRSP contribution receipts
- FHSA contribution receipts
- RRSP or RRIF withdrawals (T4RSP, T4RIF)
Deductions and Credits
- Medical expenses (dental, prescriptions, eyewear, etc.)
- Charitable donation receipts
- Political contributions (federal or provincial)
- Union and professional dues
- Deductible student loan interest
- Deductible financial costs
Housing and Homeownership
- Information about a leased dwelling (Relevé 31)
- Homebuyer’s credit (federal and provincial)
- Home Buyer’s Plan (HBP) repayment information
- Declaration of sale of a home
Notices
- Federal and provincial Notices of Assessment from the previous year
Do You Have Children?
You may need to provide additional documents, such as:
- Amounts transferred to an adult child for post-secondary education (provincial)
- Childcare receipts (Relevé 24)
- Revenu Québec advance childcare payments (Relevé 19)
- Québec Parental Insurance Plan (QPIP) benefits (Relevé 6)
Are You Self-Employed?
If you are self-employed, you may deduct:
- Business expenses and purchases
- Capital assets through amortization (capital cost allowance)
For detailed rules and eligible expenses, consult the CRA and Revenu Québec websites.
Tip
Keeping separate personal and business accounts can greatly simplify tax preparation and recordkeeping.
Optimize Your Refund with Deductions and Tax Credits
There are many refundable and non-refundable tax credits available that can significantly reduce your tax bill or increase your refund. Taking full advantage of them can make a meaningful difference.
A Helpful Tip for Families
It’s often beneficial to prepare tax returns for your entire family at the same time. Why?
Some deductions or credits may not benefit one person but can be transferred to another family member who can use them more effectively—helping your household save more overall.
How to Maximize Your Refund (and Use It Wisely)
In 2025, the federal government paid an average tax refund of approximately $2,000 to eligible individuals. Whether your refund is large or small, knowing which deductions and credits you can claim can make a meaningful difference.
Here’s a clear overview of what you may be able to claim—and smart ideas for putting your refund to work.
1. Tax Deductions: Reduce Your Taxable Income
Tax deductions lower your taxable income, which may move you into a lower tax bracket and reduce the overall tax you owe.
RRSP and FHSA Contributions
Contributions made to a Registered Retirement Savings Plan (RRSP) or a First Home Savings Account (FHSA) are tax deductible.
Important:
If you withdraw funds from your RRSP or FHSA (except for an eligible first-home purchase from an FHSA), the withdrawn amount is added to your taxable income for the year.
Tip
If your income is expected to increase in the future, you may want to carry forward your RRSP or FHSA deduction to maximize its tax-saving impact.
Moving Expenses
If you moved at least 40 km closer to your new place of work or school, you may be able to deduct eligible moving expenses.
Childcare Expenses
If childcare was required so you could:
- Work
- Operate a business
- Attend school
You may deduct eligible childcare costs from your income.
Pension Income Splitting
If you receive eligible pension income, you may be able to transfer a portion of that income to your spouse if they earn less than you. This strategy can significantly reduce your household’s total tax bill.
Tip
Income splitting can be one of the most effective ways for couples to lower their combined taxes.
2. Tax Credits: Directly Reduce Your Tax Payable
Tax credits reduce the amount of tax you owe, dollar for dollar.
- Refundable credits can result in a refund even if you owe no tax
- Non-refundable credits reduce your tax owing to zero, but not below
Some non-refundable credits can be transferred between spouses, parents, or grandparents, or carried forward to future years.
Medical Expenses
Eligible medical costs—such as prescription drugs, dental care, eyeglasses, and certain insurance premiums—may qualify for a tax credit.
Important:
Any portion reimbursed by insurance is not eligible. Be sure to subtract those amounts and keep your receipts.
Charitable Donations
Giving back feels good—and it pays off. Donations made during the year may entitle you to a charitable donation tax credit.
Tip
Pooling donations for one spouse can often increase the total credit received.
Tuition Fees
Post-secondary students may be eligible for a tuition tax credit. Educational institutions provide official tuition statements to help students prepare their tax returns.
Unused credits may often be transferred to a parent, grandparent, or spouse.
Home Purchase Costs
First-time home buyers may be eligible for a federal and provincial (Quebec) tax credit of up to $1,500, helping offset some of the costs of entering the housing market.
Work-From-Home (Telework) Expenses
If you worked from home during the year, you may be able to deduct certain work-related expenses.
Tip
Eligibility and calculation methods vary—keeping receipts and documentation is key.
3. Make It Count: Smart Ways to Use Your Tax Refund
After applying deductions and credits, you may receive a refund. Instead of letting it disappear, consider using it to strengthen your financial future:
- Contribute to an RRSP or FHSA to create future tax savings
- Add to your TFSA for flexible, tax-free savings you can access anytime
- Pay down high-interest debt, such as credit cards
- Invest in a Registered Education Savings Plan (RESP) and benefit from government grants of up to 30%
- Protect your goals with disability or critical illness insurance
Tip
Using your refund strategically can create benefits that last far beyond this tax year.
And Finally… Enjoy a Little Balance
Being financially responsible doesn’t mean skipping all the fun. If your situation allows, don’t forget to treat yourself a little—balance is part of a healthy financial plan.
