7 Expert-Recommended Tips to Maximize Your Tax Refund in Canada This Year

Tax season is officially here in Canada, and if you want to make the most of your tax refund, you’re in the right place. The Canada Revenue Agency (CRA) has kicked off the 2024 tax season by opening its NETFILE service, allowing Canadians to start filing their income tax returns. To ensure you get the largest possible refund, it’s essential to know the right strategies for maximizing your return. From making sure you claim all eligible deductions and credits to filing on time, every step counts.

Narcity consulted with tax experts Gerry Vittoratos, National Tax Specialist at UFile, and Stefanie Ricchio, CPA and spokesperson for TurboTax Canada, to bring you the inside scoop on how to make the most of your tax return this year. Below, we’ve compiled seven expert-backed tips to help you boost your 2024 tax refund.

1. Keep Your Receipts Organized

One of the simplest and most effective ways to maximize your tax refund is by maintaining an organized system for your receipts and tax documents. According to Gerry Vittoratos, many people fail to properly track their receipts, which can lead to missed opportunities for claiming credits and deductions. This is especially critical for self-employed individuals, who often neglect to track business expenses.

Vittoratos advises setting up a simple filing system, whether physical or digital, to collect receipts throughout the year. Doing this will ensure that you’re not scrambling to find missing documents when it’s time to file your taxes.

2. Reflect on Life Changes and Update Your Filing Status

Did your life situation change recently? Whether you got married, had a child, started a side business, or moved cities, these changes can impact your tax situation. Tax expert Stefanie Ricchio emphasizes that if your life circumstances have shifted, you might qualify for new tax benefits.

Changes like marriage, the birth of a child, or even a new job can make you eligible for additional credits or deductions that you weren’t entitled to in previous years. Modern tax software, such as TurboTax or UFile, can guide you through these life changes by asking pertinent questions and helping you claim all the benefits you’re entitled to.

3. Consider Spousal Tax Planning

If you’re married or living in a common-law relationship, strategic tax planning between spouses can help reduce your overall tax burden. Ricchio suggests allocating deductions and credits to the partner who will benefit the most. For instance, if one spouse earns more than the other, it may make sense for the higher earner to claim more deductions.

Spousal tax planning can also include splitting pension income or contributing to a spousal RRSP (Registered Retirement Savings Plan), both of which can help reduce the overall taxes the household owes.

4. Keep Your Dependant Information Up to Date

Updating your dependant information is another essential step that could save you money. Dependent individuals aren’t just children; they can include a spouse or even elderly family members who rely on you financially. Ricchio points out that you can claim various tax credits and deductions for dependents, including child care expenses, medical expenses, and family-related benefits such as the Canada Child Benefit (CCB) and the GST/HST Credit.

Additionally, if you’re a caregiver for a family member, you may be eligible for the Canada Caregiver Credit. Failing to update your dependant information on your tax return could mean missing out on significant savings.

5. Contribute to Your RRSP (Before the Deadline!)

One of the most well-known strategies for lowering taxable income is contributing to an RRSP. Gerry Vittoratos highlights that contributing to a Registered Retirement Savings Plan (RRSP) can reduce the amount of income that’s subject to taxation, potentially lowering your overall tax bill. Plus, the money you contribute to your RRSP grows tax-deferred until you withdraw it.

The deadline for RRSP contributions in 2024 is March 3, so if you haven’t yet made a contribution, there’s still time. However, it’s always better to contribute regularly throughout the year to fully take advantage of tax-deferred growth and ensure you don’t miss out on this valuable deduction.

6. File Your Taxes on Time

This one may seem obvious, but it’s important to stress: filing on time is essential. Ricchio reminds Canadians that if you owe taxes, filing your return before the deadline helps you avoid penalties and interest. On the other hand, if you’re expecting a refund, filing early ensures you get your money faster.

The official deadline to file your 2024 tax return is April 30, 2025, but if you’re ready, you can file as soon as possible. Filing on time not only keeps you compliant with CRA regulations but also helps you avoid unnecessary fees.

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7. Always File, Even if You Don’t Owe Taxes

Both tax experts agree on this crucial point: Always file your tax return, even if you don’t owe taxes. If you’re earning a low income, filing a tax return is essential to claim government benefits like the GST Credit or the Canada Child Benefit. Additionally, even if you don’t owe taxes, filing allows you to carry forward unused credits and deductions to future years, potentially saving you money down the line.

Tax credits such as sales tax rebates, child care benefits, and caregiver credits can still apply, even if your income was low. Filing ensures that you continue to receive these benefits and keep your eligibility intact.

Conclusion

Maximizing your tax refund in Canada requires careful planning, attention to detail, and knowledge of the tax benefits available to you. By following these seven expert-backed tips—organizing your receipts, reflecting on life changes, considering spousal planning, updating dependant information, contributing to your RRSP, filing on time, and always filing, even if you don’t owe taxes—you can ensure you’re getting the most out of your tax return.