Personal Tax Checklist: Get Organized for Tax Season

Tax season can often feel overwhelming, but with proper preparation, you can simplify the process and ensure that you’re claiming all the deductions and credits you’re entitled to. At Red Deer Accounting Firm, a division of BOMCAS Canada, we’re committed to making tax preparation as easy and stress-free as possible. This comprehensive personal tax checklist is designed to help you gather all the necessary documents and information you’ll need for accurate and efficient tax filing. By using this checklist, you can save time, avoid common errors, and maximize your tax return. Let’s get organized!

Essential Information & Documents

Before you begin preparing your tax return, gather the following essential information and documents. These are the foundation of accurate tax filing and will allow your tax preparer to effectively complete your return:

• Personal Information:
  • Your Social Insurance Number (SIN)
  • Your full name, date of birth, and current address
  • Spouse or common-law partner’s SIN, name, date of birth, and address (if applicable)
  • Contact information, including phone number and email address
• Income Slips:
  • T4 Slips: Employment income from all employers
  • T4A Slips: Pension, annuity, self-employment, or other income
  • T4E Slips: Employment Insurance benefits
  • T4RIF Slips: Income from Registered Retirement Income Funds (RIFs)
  • T4RSP Slips: Income from Registered Retirement Savings Plans (RSPs)
  • T5 Slips: Investment income (interest, dividends, etc.)
  • T3 Slips: Income from Trusts
  • Other Income Statements: Any other income statements or documentation
• Self-Employment Income: If you’re self-employed, collect all the income you have from your business activity including invoices issued and payments received. You will need information to identify your income and expenses.
• Rental Income: If you have rental income, gather all the documentation for the rental income and expenses including mortgage interest paid and property taxes.
• Foreign Income: If you have income earned from outside of Canada you will need to gather all documents.
• Prior Year Tax Return: Have a copy of last year’s tax return handy, which can be useful for referencing information and identifying any carryforward amounts.

Tax Deduction and Credit Documents

Take advantage of all available tax deductions and credits to reduce your tax liability. Gather the following documents:

• RRSP Contributions:
  • Official receipts for RRSP contributions made during the tax year and the first 60 days of the following year.
• Medical Expenses:
  • Receipts for all medical expenses paid that are over a certain amount. It is important to be organized and keep all receipts. Ensure you have the name of the person who paid the expenses and when they were paid.
  • Note that you are allowed to include medical expenses paid for you, your spouse or common law partner, and your children who are under age 18.
  • Ensure that you keep track of out-of-pocket expenses as well such as glasses, prescription medication, hospital stays, and dental expenses.
• Childcare Expenses:
  • Receipts for childcare expenses paid to a registered childcare provider to deduct these expenses
  • Ensure that all the receipts identify all the required information, such as the provider information and the child information.
• Charitable Donations:
  • Official receipts from registered charities for any monetary or in-kind donations made. Keep track of all charitable donations for all receipts.
• Moving Expenses: If you moved more than 40 km closer to your work or school you may be eligible to deduct your moving expenses.
  • Keep receipts for all expenses that you incurred during your move, including packing, transporting, lodging, and meals.
• Tuition and Education Amounts:
  • T2202A slips for tuition fees paid to eligible educational institutions and keep your education records
  • Form T11A if you are transferring tuition to a spouse or parent.
• Interest paid on student loans:
  • You can claim the interest you paid on your Canada student loan. Ensure that you have the proper documentation.
• Employment Expenses: If you have an employment condition form T2200 that you can claim employment expenses.
  • Keep proper documentation and receipt for all your employment expenses.
• Union and Professional Dues:
  • Receipts for union or professional dues paid.
• Other Deductions and Credits: Ensure that you look at all the possible deductions available. Here are some extra items that may apply to you.
  • Home Office expenses: If you worked from home you may be able to claim home office expenses. Keep track of all expenses incurred for your home office.
  • Disability Credit: Ensure that you keep your certification for disability to apply for the credit.
  • Adoption Expenses: Keep all documents and receipts for adoption expenses.
  • Volunteer Firefighter Credit: Keep all documents and receipts that are related to the volunteer firefighter credits.

Organize Your Documents

Proper organization is key to a smooth tax preparation process. Consider using these methods:

• Physical Folders: Keep all receipts and documents organized by category in separate folders. Use labels to ensure you can find them quickly.
• Digital Folders: Scan all your documents and save them in a well-organized digital folder on your computer. Use appropriate naming conventions for your files so you can easily search for them.
• Spreadsheet or Digital Tracking: Use a spreadsheet to track your expenses and deductions to help you track your information.
• Tax Software: Use a tax software to keep your information organized. The software will guide you through the process.

Final Steps

Once you’ve gathered all your documents and organized them:

• Review: Carefully review all documents to ensure accuracy and completeness. Verify that all information is consistent across all forms.
• Consult with a Tax Professional: If you have complex tax situations or are unsure about any aspect of tax filing, seek professional help from a qualified tax accountant. A tax professional can ensure you are maximizing your return.
• Contact Red Deer Accounting Firm: If you need assistance with preparing your tax return our team is ready to assist. We will ensure that your tax return is completed accurately, efficiently, and effectively.

Red Deer Accounting Firm: Your Partner in Tax Preparation

At Red Deer Accounting Firm, we’re here to assist you with all your tax needs. Our experienced team is dedicated to providing accurate, reliable, and efficient tax services for individuals and families in Red Deer. We can help you navigate the complexities of the tax system and ensure that you’re claiming all eligible deductions and credits. Contact us today for a free consultation!