The holidays are just around the corner, and that means we’re only a few months away from filing 2022 personal income tax returns!
While tax season may not be the most wonderful time of the year, there are a few steps you can take now to remove some of the stress of filing your taxes when the time comes.
If you, like many, have a little extra time off over the holidays and want to get ahead, here’s everything you need to know.
When to file your 2022 taxes
The deadline to file your 2022 tax return is May 1, 2023.
T4 slips (Statement of Remuneration Paid), T5 slips (Statement of Investment Income) and other information slips (T4A, T4AP, T4RIF, T4RSP etc.) should be sent to you before February 28, 2023. T3 slips (Statement of Trust Income Allocations and Designations) and T5013 (Statement of Partnership Income) slips will be made available by March 31, 2023.
Once you have everything you need to file, it’s a good idea to get started on your return as soon as possible.
What you can do in advance of receiving your tax documents
While you won’t be able to file until at least February, there are some steps you can take over the holidays to set yourself up for a stress free tax season.
Dig out “the shoebox.”
Start getting all your receipts and relevant documents together in one place. Group documents of the same type together (e.g. medical expenses, charitable donation slips, etc.).
If you’re hiring an accountant to file on your behalf, follow our organizational tips for saving money on your bill. If you’re filing yourself, these tips will also make it easy to find documents again in the event that your return is reviewed by the CRA.
Determine which documents you need before filing
Create a list of all the slips you’re expecting to receive before you file your taxes. How many employers are you expecting T4s from? How many donation slips are you waiting on? Are you expecting slips or documents from any other entities?
Refer to our Personal Tax Checklist for a comprehensive list of all the documents you may need to file your return.
Make a decision about RRSP contributions
Check your RRSP contribution limit and decide whether and how much to contribute before the March 1 deadline. Make sure you’re not over contributing.
Check your MyCRA account
Check that you have access to MyCRA. This is where you can easily view all your previous tax returns, update your personal information and view any mail you receive from the CRA.
Double check the address and other personal information you have on file with the CRA is correct. You can do this by logging into MyCRA. Having incorrect information could cause issues down the road.
When is it too early to contact your accountant about income tax returns?
You can always call your accountant with questions as they come up, but there is such a thing as too early to ask your accountant to start on your taxes.
While you might be eager to get started once you have some of your documents ready to go, there isn’t really value in an accountant starting your return until you have everything you need. If anything, bringing documents in in piecemeal will make the process more time-consuming, which will incur a higher cost on your bill.
Call your accountant once you have everything you need to complete your return. That includes T3, T4 and T5 slips, donation slips, records of your expenses and relevant financial documents.
Questions about tax returns?
If you have questions about preparing for tax season, our personal tax team is here to help.
Contact us any time to discuss how we can help take the stress out of your taxes.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.