Tax season 2025 is just around the corner, and while filing your taxes can feel overwhelming, it’s also an opportunity to take control of your financial situation. For Canadians dealing with debt, tax season is more than just a time to file returns – it’s a chance to explore ways to alleviate financial strain and potentially find debt relief. This guide will cover everything you need to know about tax season 2025, including deadlines, updates, and how tax planning can intersect with debt relief strategies to help you achieve financial stability.
Key dates for tax season 2025
Here are some tax-related deadlines to add in your diary in 2025:
- January 1, 2025: the tax year officially begins. Make sure you’ve received all relevant documentation from 2024, such as T4s and T5s.
- February 28, 2025: deadline for employers and financial institutions to issue T4s, T5s, and other tax slips.
- April 30, 2025: the deadline for filing your personal income tax return and paying any taxes owed.
- June 15, 2025: filing deadline for self-employed individuals (but taxes owed must still be paid by April 30).
Changes to be aware of for the 2024 tax year
The Canadian tax system evolves annually, and 2024 is no exception. Here are some updates to keep in mind when filing in 2025:
Enhanced tax credits
- Canada Workers Benefit (CWB): this refundable tax credit for low-income workers has been enhanced, offering higher payments for eligible individuals and families.
- Home Accessibility Tax Credit: seniors and people with disabilities may claim up to $20,000 for home renovations that improve accessibility.
Increased contribution limits
- RRSP Contribution Limit: the 2024 RRSP contribution limit is now $32,560. Contributions can reduce your taxable income and maximize your refund.
- TFSA Contribution Room: the Tax-Free Savings Account (TFSA) limit has increased to $7,000 for 2024.
New climate incentive payments
The federal government’s Canada Carbon Rebate (CCR) continues, offering quarterly payments to eligible residents of participating provinces, such as Ontario, Alberta, and Manitoba. Ensure your direct deposit information is up-to-date to receive these payments promptly.
Tips for a stress-free tax season
Here are our top tips and recommendations for keeping tax season as stress-free as possible:
Gather your documents early
Ensure you have all your necessary tax slips and receipts, such as:
- T4 (employment income)
- T5 (investment income)
- RRSP contribution receipts
- Charitable donation receipts
- Medical expense receipts
Using our budget template can help you keep everything in one place.
Take advantage of tax credits and deductions
Don’t leave money on the table! Ensure you claim eligible credits and deductions, such as:
- Childcare expenses
- Moving expenses (if eligible)
- Tuition tax credits
- Digital news subscription tax credit
File electronically for faster refunds
Using the CRA’s NETFILE-approved software allows you to file your return quickly and receive refunds faster via direct deposit.
How to avoid common tax filing mistakes
Keep filing your taxes as simple as possible by sticking to the following guidelines:
- Report all income: forgetting to report income, such as gig work or investment earnings, can lead to penalties.
- Double-check your deductions: ensure deductions are accurately calculated and supported by receipts.
- Update your personal information: make sure your address, marital status, and direct deposit details are current with the CRA.
- Beware of scams: the CRA will never ask for personal information or payments via email, text, or phone calls.
Should you use a tax professional?
Filing taxes can be complicated, especially if you’re self-employed, own rental properties, or have significant investment income. Hiring a tax professional or accountant can:
- Maximize your deductions and credits.
- Ensure compliance with current tax laws.
- Save you time and reduce stress.
If your financial situation is straightforward, online tax software is a reliable and affordable alternative for filing.
How Spergel can help during tax season
At Spergel, we specialize in helping Canadians navigate complex financial situations, including tax preparation and debt management. Whether you’re dealing with unpaid taxes, CRA collections, or need guidance on how to file your return, our team is here to support you. With over 35 years’ experience and a personalized approach, we ensure you stay compliant with tax laws while making the most of available credits and deductions.
Tax season 2025: FAQs
Here are some of the most common questions we’re asked about tax season 2025:
When can you start filing taxes in 2025?
In Canada, you can start filing your 2024 taxes as soon as the Canada Revenue Agency (CRA) opens its electronic filing system, typically in mid-February 2025. This is when the CRA begins accepting returns filed through NETFILE-certified software. To ensure a smooth process, gather all your tax slips and documentation, which employers and financial institutions must provide by February 28, 2025. Filing early can help you avoid last-minute stress and receive your refund sooner if applicable.
What will the new tax rates be in 2025?
In Canada, federal income tax rates are adjusted annually to account for inflation and other economic factors. For the 2025 tax year, the federal tax brackets are as follows:
- 15% on the first $57,375 of taxable income.
- 20.5% on the portion of taxable income over $57,375 up to $114,750.
- 26% on the portion over $114,750 up to $177,882.
- 29% on the portion over $177,882 up to $253,414.
- 33% on taxable income over $253,414.
These rates apply to income earned in 2025, which will be reported when you file your tax return in 2026. It’s important to note that provincial or territorial tax rates also apply and vary across Canada. For the most accurate and up-to-date information, consult the Canada Revenue Agency’s official resources or a tax professional.
Make tax season 2025 your smoothest yet
Tax season doesn’t have to be stressful. By staying organized, understanding the latest updates, and seeking professional help when needed, you can file with confidence. Start preparing now to meet the April 30, 2025, deadline and avoid last-minute stress. Need help with your taxes or financial situation? Contact Spergel today for expert advice and personalized support.