Taxes in Canada: Everything You Need to Know Before the End of the Fiscal Year

The end of the year is the perfect time to set new goals and get organized, but did you know it’s also the ideal moment to prepare your finances for the upcoming tax year? The earlier you start, the easier it will be to handle your obligations, and you might even take advantage of valuable tax benefits.

In this article, I’ll walk you through the steps to face 2024 with your finances in order and stress-free.

1. Organize Your Documents and Receipts

The first step is to review and organize all your financial documents from 2024, including:

• Receipts for expenses (education, healthcare, public transit, etc.).

• Proof of income (employment, freelance work, or rental income).

• Documents related to investments and RRSP contributions.

Sorting these out now saves you from a last-minute scramble during tax season. Plus, staying organized throughout 2025 will make next year’s process even easier.

2. Review Your RRSP Contributions

Contributions to your Registered Retirement Savings Plan (RRSP) made until the last of February

2025 can directly impact your 2024 tax return. By contributing to your RRSP, you reduce your taxable income, which can lower the taxes you owe or even increase your refund.

Take a moment to review how much you’ve already contributed and see if there’s room to maximize your tax benefits.

3. Analyze Your Spending and Make Adjustments

The end of the year is an excellent time to reflect on your spending habits. Ask yourself:

• Where can I cut unnecessary expenses?

• Which costs can I plan better for in 2025?

Creating a realistic budget for the upcoming year helps you avoid surprises and ensures you stay on track to reach your financial goals.

4. Take Advantage of Available Tax Credits

There are several tax credits available in Canada that can improve your financial situation, such as:

• Climate Action Incentive

• GST/HST Credit

• Provincial credits like BC Renters and Ontario Trillium.

Make sure you’re eligible for these benefits. A professional consultation can help identify which credits you qualify for.

5. Plan Ahead for Tax Season

Tax season officially begins in mid-February, but the sooner you’re prepared, the better. Plan to:

• Gather all necessary documents.

• Schedule a meeting with an accountant to avoid delays.

• Ensure you don’t miss important deadlines.

Get Professional Help

Preparing for the tax year can seem overwhelming, but you don’t have to do it alone. At Nardi Accounting, we’re here to help with financial planning, tax filing, and much more.

Take the first step now and start 2025 with your finances under control.

Contact us today to find out how we can make your life easier!