It’s still a month away but it is going to come quickly.

What am I talking about, you ask. Income Taxes!

Whether you use the free community volunteer income tax clinics (freetaxclinics.ca), file your own taxes, or take them to professional filing services, being organized and prepared makes it so much easier.

Income tax season every year happens in March and April. This is the time to file your income taxes for the previous year. IE. Between March 1st and April 30th, 2025, I will be filing my income taxes for all of 2024. If you haven’t filed your taxes for a few years, you can file them anytime through the year.

Many government benefits and credits, such as the Guaranteed Income Supplement for Seniors or the monthly Trillium Benefit, use your income tax information to determine if you are eligible. If you don’t file your taxes, you will not get these benefits and credits.

Why am I writing about this while still in January?

Because it takes effort and time to collect the information and documents you need. Some of those documents are starting to or going to start to arrive soon. Here are Five Steps to Tax Planning:

1.            Start your tax planning early

•              Plan how you are going to organize your financial information. You may want to use a binder or file folder to keep your personal tax information in one place. This can also be a large envelope or a plastic bag. Or, in my case, my important paper pile that moves from one surface to another… until this year. The next reasonably sized envelope that comes to me in the mail I am going to make my place to collect my tax documents. There is a list of the most commonly relevant documents with this post.

2.            Keep good records and receipts throughout the year

•              Organize and file your receipts if you have:

i.             Receipts for employment expenses, tools, or equipment

ii.            Union or professional dues

iii.           Moving expenses for employment or post-secondary school

iv.           Medical expenses

v. Childcare receipts

vi.           Receipts for income tax paid in another country

3.            Make sure you collect all your tax information slips

•              These may be sent to you by mail, or email, or you may have to go onto a virtual account to download them.

4.            Decide if you need tax preparation help

•              If you have a simple tax return, visit a Community Volunteer Income Tax Program free clinic. Call 2-1-1 or visit freetaxclinics.ca to find your local clinic.

•              Some people use software programs or paper tax forms to file their own taxes

•              If your taxes are more complicated (examples might be business taxes or investment income), you can use an accountant or professional tax preparation service. Ask for their rates first!

•              You can also call the Canada Revenue Agency for assistance at 1-800-959-8281

•              NEVER SIGN A BLANK TAX FORM!

5.            Prepare summaries and organize your documents

•              Get organized before going to a tax professional or volunteer. This will help save time and money and decrease the chances of something being missed.

i.             Lay tax forms flat

ii.            Paper clip forms together in categories

iii.           Keep all tax forms for one year together

May the force be with you.