The Low-Stress Tax Prep Plan

Why tax preparation plans are useful

Breaking down your tax preparation across a few months will help spread out your responsibilities. You could have manageable steps each week beginning in February to the end of April when your return is due. Doing so can help you:

• Start early. Prepare your tax return in time for the April 30 deadline. Starting in February — when most documents are available — gives you ample time to gather all documents, such as your T4 tax form and Registered Retirement Savings Plan (RRSP) slips. Holding off on this task may lead to under-reported income or missed deductions you could have claimed. Tax preparation can be simpler when you do a little bit each month.
• Think about partners and dependants. Ensure you have all necessary personal information. Gather details for your immediate family, such as your spouse or common-law partner, and any dependants (e.g. children). This includes their Social Insurance Numbers (SIN), birthdates, and current addresses.
• Get up to speed. Tax rules change frequently. Allow time to review your necessary documents thoroughly and complete any new tax forms the CRA has introduced since your last filing.

• Utilize support. TurboTax is always here to help. For example, you can use TurboTax Online on any PC or Mac, or with a mobile app for iOS and Android devices. The CRA's auto-fill my return (AFR) feature makes it easy to add information before you file.

Let's look at a step-by-step plan.

Step 1: Gather documents and expenses

The beginning stages are all about evidence gathering.

• Collect and total receipts. Gather receipts, bills, and invoices from the last year. Organize them into categories. Separate your personal and business expenses and filings. For example, you could have a category for office supplies, postage, or computers. Calculate the total amounts for each. 
• Check if you made donations. Collect all donation receipts from any charitable contributions you made in the last year. Ensure each receipt contains the date, amount, and charity’s registration number — a requirement for claiming deductions. 
• Organize medical expenses. Pull together receipts for allowable medical expenses that were not covered by insurance. Go through your receipts and bank statements. Medical expenses could include dental treatments, prescriptions, glasses, or contact lenses. 
• Compile child-care expenses. Child-care receipts or invoices should show the amount paid, the provider’s name, and their Business Number. 

By late February, you should receive most of your slips prepared by your employer(s). File them away while you continue to dig into the spending categories you've created.

Check the CRA's deductions criteria if you’re unsure about what you can claim on your tax return.

Step 2: Gather proof of income, investments, and education costs

Once you have most of your tax documents — which include proof of income (T-slips) and benefit slips — to add the necessary details to your return in preparation for filing.

A CRA feature called auto-fill my return (AFR) automatically imports your tax information right into TurboTax. This service is supported by all editions of the TurboTax software. You just need to register for a CRA My Account to be able to use AFR.

With AFR, you’ll be able to access the slips received and processed by the CRA for the current tax year. These include:

• Income evidence. Collect all T4 slips from employers. As a reminder, T4 slips detail your employment income. Also, gather any other income documentation such as the T4A for pension, retirement, annuity, and other sources. If you have stocks, you will need T5 slips for reporting any investment income. Again, the AFR feature is your friend here. Use it to easily import tax slips.
• RRSP slips. March is when you should collect RRSP contributions. The deadline to contribute for a previous tax year is in the first 60 days of the new year.
• Your investments. Your investment-related slips could include your TFSA (Tax-Free Savings Account) contribution receipts. You can use the auto-fill feature to upload these, too.

Your tuition costs. This includes T2202 certificates for claiming the tuition tax credit for payments made for post-secondary education. Bear in mind that you may need to log in to your university account to locate your T2202. Contact the registrars office if needed.

Step 3: Get ready to file your tax return

As you get closer to the CRA tax filing deadline of April 30, it’s time to chase down any missing forms, review what you have so far, and then close any gaps.

• Reference last year’s return. Review last year’s tax return to help with this year’s filing. It can be a guide for carry-forward amounts like capital losses or unused tuition and education credits. Your CRA My Account houses previously filed tax returns, carry-forward amounts, and other tax-related data. These can be imported using auto-fill my return. If you need to make an adjustment or correction from the previous year’s return, this is when you do it. 
• Retrieve CRA codes. Look up your CRA NETFILE access code from your last Notice of Assessment (NOA). You need this code to file your tax return through NETFILE. Can't find your code? Then retrieve it through the CRA’s My Account online service, or request a new one. TurboTax is NETFILE certified, so your tax return is securely submitted—with just one click. You can also send it by snail mail, if you need to.
• Add new tax slips. If there are new slips issued by the CRA or in your account, you can import these by using AFR. It won't affect anything you've previously input.
• Finish your TurboTax filing. You can review and change your filing in TurboTax. Once you’re happy with everything, you can click on "file" and then choose how you would like to pay your tax owing or receive your refund. Alternatively, you can use the TurboTax Full Service option, which includes an expert review of your return before you submit it to the CRA.
• Check post-filing status. After you've submitted your return, you can review all of the details, correct any errors, and plug any information gaps. You can also check how far off your return is from being reviewed and approved.

Let's recap the plan. In your first stage of preparation, you should gather income tax forms and proof of any possible deductions. The second step should be used to prepare information about any investments, education spending, and RRSP slips. In the last step before filing, close any gaps, get your NETFILE codes, and add any missing details to file your return online by April 30.

Tax season can be stressful, even with planning.

TurboTax is here to help, whether you do it yourself, need guidance, or want a service to do it for you.

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