Taxes in Canada can be confusing and stressful, especially if you don’t know where to start. With multiple forms, rules, and deadlines, it’s easy to get confused or anxious about doing something wrong. No matter if you’re filing for the first time or just want to avoid issues with the CRA, you’re not alone.

The good news is that your tax return doesn’t have to be difficult. By following the right steps and with some guidance, you can get your return completed confidently.

In this guide, we’ll walk you through everything you should know: who must file, which forms to gather, how to file, and when to call in the pros. Let’s make tax time less stressful and even save you a few bucks.

Who Needs to File a Tax Return in Canada?

Not everybody knows if they need to file a tax return. Some believe it’s only for individuals who have full-time jobs or big incomes. However, in Canada, many individuals have to file, even if they do not have a lot of income.

Filing a tax return is how you report your income to the government (CRA – Canada Revenue Agency). It’s also how you get money by claiming tax credits and benefits.

Here are the usual reasons that you have to or ought to file a tax return:

1. You earned income during the year

You worked, had a part-time job, or ran a small business. You should file. This includes:

• Full-time or part-time work (you’ll get a T4 slip)
• Freelance or self-employment
• Tips, commissions, or rental income

2. You want to claim tax credits or benefits

Even if you had little or no income, filing a return means you can get money like:

• GST/HST credit
• Canada Child Benefit
• Climate action incentive
• Disability tax credit

You can only get these if you file a return.

3. You’ve paid income tax and would like a refund

If tax was withheld from your salary, you could get some of it back if you submit a return.

4. You’re a student

Students may not make much, but they can still file to:

• Claim tuition credits
• Get GST/HST credit
• Carry forward unused credits for the future

5. You’re a newcomer or immigrant

If you moved to Canada, you may need to file even in the first year. It opens your file with the CRA and gives you access to credits and benefits.

6. You’re self-employed or own a small business

You must report all business income, even if it was from a part-time or side hustle.

What Documents do You Need Before Filing?

Before you start your tax return, it’s important to gather all the right papers. This makes the process smoother and helps you avoid mistakes or delays. You don’t need anything fancy,  just the basic documents that show how much money you earned, what you spent, and what you can claim.

Here’s a simple list of the documents most people need:

1. Income Slips

These show how much money you earned in the year. Some common income slips include:

• T4 – from your job
• T5 – for interest from a bank
• T3 – for trust income or investments
• T4A – for pension, scholarships, or freelance income
• T5018 or invoices – if you’re self-employed

2. Receipts for Tax Deductions and Credits

These help lower the amount of tax you owe or increase your refund. Keep receipts for:

• RRSP contributions
• Medical or dental expenses
• Childcare costs
• Tuition or school fees (T2202 form for students)
• Moving expenses (if you moved for work or school)
• Charitable donations

3. Personal Information

Make sure you have:

• Your Social Insurance Number (SIN)
• Your bank account info for direct deposit
• Your spouse’s income info (if married)
• Info about your dependents or children

4. Last Year’s Tax Return (if available)

This helps carry over any unused credits and makes filing easier.

5. Notice of Assessment from Last Year

This is a letter from the CRA that confirms what they processed from your last return. It can help you check your RRSP and TFSA limits.

Once you have these documents ready, filing becomes much easier. If you’re unsure what you need, MPCPA can guide you step by step, so you don’t miss anything important.

Step-by-Step: How to File Your Tax Return?

It might look complicated to file your tax return initially, but it’s much easier if you do it step by step. Whether online or paper filing, the key is to stay organized and divide it into smaller steps.

The following is an easy step-by-step guide to help you file your return in 2025:

Step 1: Get All Your Documents

Get your income slips, receipts, and other records out before you begin (list above). Time is saved, and mistakes are minimized.

Step 2: Choose How You’d Like to File

You have three options in general:

• Online (using certified software) – Fastest and most used method
• On paper (mailing to CRA) – Longer to process
• Use a tax professional – Better if your taxes are more complex

Note: Software approved by CRA will typically review for errors and can help you claim all your credits.

Step 3: Report All Your Income

Report your income based on the amounts on your T4, T5, and other slips. If you are self-employed, report your gross income and any business expenses.

Step 4: Claim Deductions and Tax Credits

Enter figures for any credits or deductions (like RRSP, tuition, medical expenses, etc.). They will decrease the amount you owe or increase your refund.

Step 5: Verify and File

Double-check to avoid mistakes. Then, file your return online with NETFILE, by mail, or with your accountant.

Step 6: Wait for Your Notice of Assessment

When you file your return, the CRA will send a summary called a Notice of Assessment. It shows whether or not you owe tax, or if you get a refund.

Can I File Taxes on My Own?

Yes, most Canadians can fill out their taxes themselves, especially if their situation is simple. If you receive only one income, don’t have a business, and don’t have many deductions, filling out your return may be quick. The CRA has certified free and affordable software packages that guide you step by step through the process. These programs guide you through recording your income, claiming tax credits, and electronically filing your return.

But doing your own taxes isn’t the answer for everyone. When you have self-employment income, rental homes, investment income, or major life changes (like moving or a divorce), it can become tricky. It’s easy to miss deductions or make mistakes, and that might cost you money or lead to CRA problems. Even if your case is easy, you might be unsure or want to double-check.

That’s where MPCPA comes in. We provide a complete taxation service in Brampton and the surrounding Greater Toronto Area. Also, we guarantee your tax return is done right, help you find all the credits you qualify for, and save you time and stress. So yes, you can do it yourself, but you don’t have to do it alone.

When is it Best to Hire Professional Tax Accountants?

Filing taxes may be easy for some, but for others, it gets complicated. That’s when it is advisable to hire a professional tax accountant. A tax professional is aware of the regulations, can help you save money, and prevent costly mistakes.

The following are some situations when it is advisable to employ a tax accountant:

1. You Have a Complicated Tax Situation

If you are self-employed, have a small business, or receive rental or investment income, your tax forms and rules will be more complex. An accountant can help make sure everything goes right.

2. You’ve Had Significant Life Changes

Major changes like marriage, divorce, buying a home, or giving birth can affect your taxes. A professional will let you know what deductions or credits you are now qualified for.

3. You Want to Save Time and Stress

Doing your taxes yourself can be stressful and time-consuming. An accountant will do it for you in a flash and address any questions you may have along the way.

4. You’ve Made Mistakes Before

If you have previously had tax problems or received notices from the CRA, it is best to seek professional assistance this time so that you don’t make the same mistakes again.

Common Tax Filing Mistakes and How to Avoid Them

Even small mistakes can hold up or reduce your refund. These are some of the most typical errors people make when filing their taxes, and how you can avoid them easily:

1. Missing or Wrong Personal Information

Most people make errors when filling in their name, Social Insurance Number (SIN), or financial information. Such small errors can lead to your refund or tax return being delayed. Check over your personal details before submitting. In case of doubt, verify it with your official ID or CRA documents.

2. Not Reporting All Income

You have to report everything you earned throughout the year. This may be your main work, side work, investments, or government retirement. If you leave out a single slip, the CRA will pick it up and may issue a notice subsequently. Gather all your T4, T5, or any other income slips before filing.

3. Failing to Claim All Deductions and Credits

Most people forget about RRSP contributions, child care, or medical expenses. These claims can reduce the amount of tax you owe or even increase your refund. Save receipts and document your expenses throughout the year. Consult tax credits on the CRA site or with an expert.

4. Filing Your Return Late

Late filing will incur penalties, especially if you have taxes to pay. The CRA also applies interest daily until you settle your account balance. The deadline is usually April 30 of every financial year. Create a reminder in advance or file as soon as you get your tax slips.

5. Math or Entry Errors

Small errors in arithmetic or data input can produce erroneous results. That could result in your refund being processed incorrectly or rejected. Utilizing tax preparation software minimizes the potential for errors. Alternatively, a professional tax preparer can check all of it to ensure it is correct.

How MPCPA Can Help You File With Confidence?

Filing your taxes doesn’t have to be stressful or confusing. At MPCPA, we take the pressure off by offering clear, friendly, and expert tax services. From organizing your documents to submitting your return, we guide you through every step with care and accuracy.

Our team stays up to date on CRA rules, credits, and deductions, so you don’t miss out on any savings. We help you avoid common mistakes and make sure your return is correct and complete. Whether you’re an individual, self-employed, or a small business owner, you can rely on us for accurate and on-time filing.

We proudly offer tax return services for businesses and individuals in Brampton and the surrounding Greater Toronto Area, helping clients feel confident and worry-free during tax season. With MPCPA, you’ll always have a trusted partner by your side.

Conclusion

Filing a tax return in Canada doesn’t have to be overwhelming, but with the right approach and planning, it can be quick and easy. Whether on your own or seeking professional assistance, being aware of steps, deadlines, and common mistakes can make all the difference. Although some people self-manage, others prefer peace of mind by consulting experienced professionals.

With MPCPA, you get a full-service tax in Brampton and the surrounding Greater Toronto area designed to spare you stress, money, and time. Submit confidently, avoid errors, and maximize your refund with us. Tax time does not have to be a drag when you make good use of quality assistance.

Frequently Asked Questions