Preparing to do your taxes

Personal information

When you are doing your taxes, a key piece of personal information to have ready is your social insurance number (SIN). Service Canada issues this 9-digit number (ex. 111 111 111) and the government uses it to identify you.

The Canada Revenue Agency (CRA) uses your SIN to connect your income tax and benefit return to your account. If you have a spouse or a common-law partner, you will also need their SIN and net income.

If you have done your taxes before, you may need to gather some more information about your tax account with the CRA.

This could include:

• your NETFILE access code
• your carryforward amounts
• your registered retirement savings plan (RRSP) details

These pieces of information can be found:

• online in My Account
• on your notice of assessment from the previous tax year
• by contacting the CRA

Information slips

An information slip, commonly referred to as a slip, is a tax document that gives you details about your income and related deductions for a particular tax year. These slips are given to you by whoever paid you the income, known as the issuer.

The issuer is most often your employer, but other examples include:

• your financial institution
• your school
• a government department such as Service Canada

The issuer of your slip must generally give you the slip before March 1 of the following year. They will also send a copy of the slip to the CRA. You may receive multiple slips, depending on what your income situation was during the year.

Many of these tax slips are available in My Account or through the Auto-fill my return service.

Information slips and your taxes

Your income information is reported on the slip in numbered boxes that refer to a specific line on the tax return. Each slip will have instructions about where to report this information on your tax return.

To do your taxes, you will need all of your information slips for the income you earned during the year. If you cannot get a copy of your slip to do your taxes by the income tax deadline, you can estimate your income by using your pay stubs or financial statements.

Common information slips

T4 slip: Statement of Remuneration Paid

This slip shows your employment income earned as an employee. The boxes on the T4 slip should show the same year-to-date amounts as on the last pay stub you received at the end of the year.

Compare your T4 slip to that paystub to make sure the amounts are the same. If you notice any differences, you should discuss them with your employer and resolve the situation before contacting the CRA.

Example of a T4 slip

Is this slip hard to read? Don't worry, we will provide you with a link to the PDF (hi-res) version after this lesson.

T4A slip: Statement of Pension, Retirement, Annuity, and Other Income

This slip shows several different types of income, such as:

• scholarships
• payments from a registered education savings plan (RESP)
• pensions
• fees or commissions for self-employed individuals

Registered education savings plan (RESP)

Registered education savings plan (RESP)

Self-employed

Self-employed

Example of a T4A slip

Is this slip hard to read? Don't worry, we will provide you with a link to the PDF (hi-res) version after this lesson.

T4E slip: Statement of Employment Insurance and Other Benefits

Service Canada uses this slip to report benefits they send, such as employment insurance (EI) benefits and tuition assistance.

Example of a T4E slip

Is this slip hard to read? Don't worry, we will provide you with a link to the PDF (hi-res) version after this lesson.

T5007 slip: Statement of Benefits

This slip shows the following types of income:

• workers’ compensation benefits
• social assistance payments
• provincial or territorial supplements

Example of a T5007 slip

Is this slip hard to read? Don't worry, we will provide you with a link to the PDF (hi-res) version after this lesson.

T5018 slip: Statement of Contract Payments

• This slip shows: construction subcontractor payments.

Example of a T5018 slip

Is this slip hard to read? Don't worry, we will provide you with a link to the PDF (hi-res) version after this lesson.

If you are a resident of Quebec

If you work and live in the province of Quebec, you will also receive Relevé slips. You cannot access your Relevé slips through My Account with the Canada Revenue Agency. The provincial taxes for the province of Quebec are governed by Revenu Québec.

Resources are available

After you finish this lesson, this resource link will be available:

• Types of information tax slips

Information about income not reported on a slip

Some income will not be reported on an information slip, such as:

• tips paid directly by the client while working in service industry jobs such as waiter, housekeeper, or taxi driver
• payments from work as a driver for a food delivery service, such as DoorDash, SkiptheDishes, or Uber Eats
• payments for self-employed work in the trades, such as carpentry, plumbing, or auto service
• income from work as an influencer on social media platforms like YouTube, Instagram, TikTok, or Twitch

You are responsible for reporting any income you earn on your tax return, even if it is not shown on a slip.

To report this income, you will need to gather supporting documents such as:

• financial statements
• invoices
• other records

Even if the CRA does not ask you to submit these documents when you file your taxes, it is important to keep them as evidence of income earned in case the CRA asks for verification at another time.

Supporting documents

You can claim certain deductions and tax credits , such as union dues or EI premiums, by using amounts shown on your information slips. Others require receipts, certificates, or additional documents. You are responsible for confirming what supporting documents you need to claim an amount on your tax return.

Using certified tax software

If you are using certified tax software, you do not need to submit any supporting documents to submit your return to the CRA. If you are doing your taxes on paper, you may need to attach your supporting documents. Whichever method you choose to do your taxes, the CRA may ask to see your supporting documents later. It is the same as when you are bringing an item back to get a refund or a credit. You need proof that you bought this item!

Filing electronically

The fastest and easiest way to do your taxes is electronically. Once received, it usually takes about 2 weeks for the Canada Revenue Agency (CRA) to process your taxes.

How electronic filing works

You must use NETFILE-certified tax software to do your taxes online. There are a variety of software products to meet your needs, some of which are free.

There are 2 types of software products:

• Forms-based software will guide you through the process of completing a tax return much like you do on paper.
• Interview-based software will guide you through the process by asking you questions about your tax situation. This process can assist so that you don’t miss out on any benefits and credits you may be eligible for.

Whether you use interview or forms-based software, both will do the calculations for you!

The software will send your income tax and benefit return directly to the CRA through an online service called NETFILE. Once you have submitted your tax return, you will receive a confirmation number to keep for your records.

Choosing NETFILE-certified tax software

You can choose from any of the available NETFILE-certified tax software approved by the CRA. The software is available on the following platforms:

• online (web-based)
• desktop download options
• mobile applications

The CRA has lists of available software you can choose from. These lists show what tax years you can file a tax return for and describe what platform each software uses. If you click a link, you will be directed to the software developer’s web page.

From the NETFILE web page, you can find:

• Free or pay-what-you-want tax software
  • Free tax software
    Some options are completely free to use.
  • Pay-what-you-want tax software
    Some free tax software give the option to pay what you want, but this is optional.
• Paid tax software with free offerings
  • Paid tax software
    You must pay to use certain software.
  • Paid tax software with free offerings
    Some paid tax software allow you to use their services for free depending on your tax situation or income level.

The CRA does not provide detailed information about each software product. You can find out more information, like how to use the software or whether it has free offerings, from the software provider or in the software itself.

What you need to file online

Most people can do their taxes electronically, even if it’s their first time doing their taxes, but there are some restrictions.

For example, the CRA needs your complete date of birth on file. If you aren’t sure what information is on file, you can contact the CRA before doing your taxes electronically.

Updating your personal information before filing electronically

You cannot update certain personal information on file with the CRA, such as your address or name, by entering the new information into the certified tax software. Be sure to update this information with the CRA before you use the software.

You may be able to update this information using My Account. By registering for My Account, you can have access to helpful services to complete your tax return more easily.

You can also contact the CRA to make changes to your personal information.

Using Auto-fill my return to simplify the electronic filing process

Auto-fill my return is a secure CRA service that makes doing your taxes simpler. To use this service, you must be registered for My Account and use certified tax software. You must have filed your taxes for the first time before you can register for My Account.

The Auto-fill my return service uses the same login credentials you use for My Account. The service uses information the CRA has on file to quickly and easily fill in parts of your tax return. This includes details from your tax information slips as well as other tax-related information, such as your tuition carryforward amounts. You save time by not entering the information manually, and you also reduce the risk of entering the information incorrectly. Certain amounts, such as tips and occasional earnings not reported on a slip, are not available through Auto-fill my return.

Keep in mind that this service is able to fill in only the information the CRA has available when you use the service. It is your responsibility to enter any information that may be missing or incomplete. You are also responsible for making sure the information on your tax return is complete and accurate.

Authorizing a representative

If you are uncomfortable doing taxes yourself, you can authorize a representative to do them for you, such as:

• a family member
• a friend
• an accountant

You can find an approved tax preparation service provider to do your taxes for a fee. Tax preparation service providers will do your taxes using EFILE certified tax software and will send your tax return electronically to the CRA through an online service known as EFILE.

The CRA usually takes 2 weeks to process tax returns filed electronically through the EFILE service.

Attending a free tax clinic

The Community Volunteer Income Tax Program (CVITP) allows community organizations to partner with the CRA to organize free tax clinics where eligible people can get their tax returns done for free by volunteers. Most volunteers use EFILE certified software to submit your tax return electronically. Once received, the CRA usually takes about 2 weeks to process your taxes.

To be eligible, you must have both a modest income and a simple tax situation.

A modest income

Your family income should generally be less than the suggested income levels, based on the size of your family. Family size includes an individual or a couple and their dependants.

Note: Organizations can modify the total family income levels based on the local economic environment, the population they serve, and their resources.

A simple tax situation

In general, your tax situation is considered simple if you have no income or if your income comes from sources like:

• employment
• pension
• social assistance
• scholarships

Volunteers can do your taxes by videoconference, by phone, in person, or using a drop-off and pick-up option.

Filing a paper return

You can do your taxes on paper by filling out a tax package for your province or territory and mailing the completed forms to the CRA. Once received, the CRA usually takes about 8 weeks to process your taxes.

If you were a resident of Quebec on December 31 of the tax year, you have to file 2 tax returns. You must file your provincial income tax return separately through Revenu Québec and your federal tax return with the CRA.

The federal forms are available online and can be:

• printed and filled out by hand
• completed on the computer before being printed

You can also ask the CRA to mail you a tax package, free of charge, by:

• using the online order form
• contacting the CRA

If you choose to do your taxes on paper, you are responsible for completing all the necessary calculations and attaching all the required documents to support reported income, deductions, and credits claimed on your tax return.

SimpleFile by phone (Automated phone service)

The SimpleFile by Phone allows eligible individuals to auto-file their income tax and benefit return over the phone. It’s free, secure, and easy to use. There are no paper forms to fill out or calculations to do.

This service is for eligible individuals with a low or fixed income and a simple tax situation that remains unchanged from year to year. If you are invited to use this service, you will be asked to verify some personal information and answer a series of short questions through the automated phone line.

The CRA will send you an invitation letter in February if you are eligible to do your taxes through SimpleFile.

Filing due date

When you do your taxes, you complete an income tax and benefit return for a particular tax year. The tax-filing season opens in mid-February of the following year. This means that individuals and their representatives can start filing electronically, and the Canada Revenue Agency (CRA) can start processing returns filed for the previous year in mid-February.

Your tax return is usually due on or before April 30 of the following year. However, if you or your spouse or common-law partner were self-employed during the tax year, your tax return is usually due by June 15 of the following year.

Note: If you know you have an amount of taxes to pay on your income (employment or self-employment), you must pay before April 30 to avoid interest or penalty amounts.

Exception to the due date of your return

When the due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, your return is considered on time if the CRA receives it or it is postmarked on the next business day.

Do your taxes every year, even if you have no income

Your benefit and credit payments are calculated using information from your taxes. So, it is important to do your taxes on time every year to avoid payment interruptions. This is true even if you have no income in the year or if you are earning tax exempt income. If you have a spouse or a common-law partner, they must also do their taxes on time every year.

Penalties and interest

If you file your taxes after the due date and have a balance owing, you will be charged a late-filing penalty. The CRA won’t charge you a late-filing penalty if you are entitled to a refund. The penalty is 5% of your balance owing for the year, plus an additional 1% of your balance owing for each full month the return is late, to a maximum of 12 months. The late-filing penalty might be higher if the CRA charged a late filing penalty for any of the 3 previous years.

The CRA charges interest on both the balance owing and any penalty.

Payment deadline

If you have a balance owing when you do your taxes, it is due no later than April 30 of the year following the tax year. This date applies to both employed and self-employed individuals.

When the due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, your payment is considered on time if the CRA receives it on the first business day after the due date. You should pay any amount you owe on or before this date to avoid paying interest on the unpaid balance.

Tax Instalments

If you are employed, your employer normally deducts the taxes you might owe directly off your pay. This is called withholding taxes at source.

If you earn self-employment income or occasional earnings, taxes are not automatically withheld at source. You will likely have to pay a lump sum when you do your taxes.

Tax instalments are smaller payments you make throughout the year to cover that lump sum.

If you owe more than $3,000 of income tax, or $1,800 for residents of Quebec, in one of the two previous years, you may have to pay tax instalments for next year’s taxes.

Tax instalment payments are due by the following dates:

• March 15
• June 15
• September 15
• December 15

The CRA sends instalment reminders with suggested payment amounts to people who will likely have to pay tax instalments.

Interest on unpaid balances

If you do not pay your balance by April 30 or miss your required tax instalment payments, the CRA will start charging you compound daily interest on any balance owing or outstanding tax instalment payment(s).

Interest charges will start the day after the due date, and continues until you pay your balance in full. The CRA charges interest on your total account balance, including any penalties that may have been charged and amounts owed from previous tax years.