Tax filing tips when your accountant retires and you want to do it yourself

Where to begin

If you are filing your taxes for the first time, there are a few things to know to make the process go smoothly. Before you start, gather all your tax forms, slips and donations. Note that you need to report all income, including employment income on T4 slips, investment income, self-employment income, scholarships, rental income and withdrawals from registered retirement savings plans (RRSPs) and registered education savings plans (RESPs).

There are also some key dates that you need to remember. For most individuals, the deadline to file your tax return is April 30, 2025. If you're self-employed, you have until June 16 this year (since June 15 is a Sunday). There are penalties for late filing, so be sure to get organized to file on time.

It's also important to be aware of any changes that need to be factored into your return this year. One important one is tax brackets and many contribution amounts and limits that have been increased to account for rising living costs and inflation. This includes the basic personal amount, the TSFA and RRSP and OAS limits and the Canada Pension Plan contribution room.

If you file late for 2024, the penalty is now 5 per cent of your 2024 balance owing, plus an additional 1 per cent for each full month you file after the tax filing due date – to a maximum of 12 months.

“That's why it's important to be aware of key dates and file and pay on time,” Ms. Ricchio says.

If you need additional help, Ms. Ricchio notes that TurboTax Assist & Review guides taxpayers through their taxes – including finding and recommending deductions and credits – so you can keep more money in your pocket. The service also provides access to tax experts who offer unlimited tax help and guidance as you prepare your return. TurboTax experts will also do a final review of your return before you file so you can feel confident your taxes are done right.

When your accountant moves on

If your accountant has informed you that they're retiring, Ms. Ricchio says you should first request that they send you copies of your past tax returns, financial statements and any other important documents. She recommends keeping your old tax records for at least six years, so ensure your accountant provides information dating at least this far back should the CRA request supporting documentation.

If they haven't already, Canadians should also create a “My Account” with the Canada Revenue Agency (CRA), where they can access their current and past tax information. Ms. Ricchio also recommends updating your authorized representative in your CRA My Account so your former accountant can no longer access your data.

“If you find a new accountant or representative, you can authorize them by submitting an authorization request through your CRA My Account. If you're taking on filing yourself, you don't need to authorize new representation,” Ms. Ricchio says.

She also recommends checking your CRA My Account to ensure all your information, including name, address, e-mail and phone number, is accurate for future communication.

“Staying informed empowers you to catch potential errors, track refunds, and stay on top of any outstanding balances or upcoming deadlines – and you'll feel better prepared for when you're ready to file on your own,” Ms. Ricchio says.

Deciding if you can file alone

Most tax situations are straightforward enough to be handled on your own or by using tax solutions like TurboTax, Ms. Ricchio says.

“TurboTax can provide expert advice to help you navigate any significant life changes that could impact your filing, such as getting married, starting a family or changes in health care,” she says. “These milestones can introduce new filing options, credits and deductions you may be eligible for.”

If you feel overwhelmed and would prefer to hand your taxes off, you can also use TurboTax Full Service, where your taxes are prepared, signed and filed by a tax expert in as short a time as one day if your documents are organized and ready.

“I always try to remind Canadians that TurboTax tax experts cost 60 per cent less than the average tax pro,*helping you get more money back for less of yours,” Ms. Ricchio adds.

Using online tax software

With your CRA My Account, you can ensure you can claim any unused credits, such as tuition or education credits. You can also automatically import your tax information from the CRA right into TurboTax with the Auto-fill My Return (AFR) service.

“With Auto-fill My Return, your carry-forward amounts are imported directly to the proper spots in your tax return using your CRA My Account,” Ms. Ricchio explains.

TurboTax also provides guidance on how to enter your Canada Pension Plan and Old Age Security benefits and various tax credits, which can be hard to track.

“With new measures, grants, and tax credits added by the government, you might find yourself overwhelmed by the increasingly large sum of new information,” Ms. Ricchio says. “To make sure you're not missing out on potential deductions and claims, TurboTax has a variety of options to suit your needs.”

As the tax landscape evolves and more accountants retire, Canadians may need to explore new ways to manage their filings. Whether choosing an online tax solution or seeking a new professional, staying informed and proactive can help ensure a smooth transition. Ms. Ricchio reminds Canadians that “with the right tools and resources, filing taxes can be simpler than ever.”

* Average Expert Cost Comparison: Based on the average cost in 2023-2024 for respondents from nationwide third-party surveys who paid a tax preparer to prepare their personal income tax return (T1), compared with the average cost per return of customers purchasing TurboTax Full Service and/or Assist & Review (as applicable) in tax year 2023. Your savings will vary based on your prior tax filing costs and the complexity of your tax returns.

This article was originally published by The Globe and Mail in March 2025.