Preparing for year-end taxes is crucial for both individuals and businesses in Canada. Below is a thorough two-part checklist for Canadian individuals and businesses, including key deadlines and essential documentation.

Part 1: Canadian Individual Tax Checklist (T1)

This list focuses on income earned during the calendar year (January 1 to December 31).

1. Key Deadlines & Preliminary Tasks

Event	Deadline (General)	Notes
RRSP Contribution	March 1 (following year)	Last day to contribute and claim a deduction for the previous tax year.
Tax Payment Due	April 30	Payment of any outstanding balance is due by this date. Interest applies after this date.
Filing Deadline (General)	April 30	The official filing deadline for most individuals.
Filing Deadline (Self-Employed)	June 15	The filing deadline is extended, but payment is still due by April 30.
File T1135 (Foreign Property)	Same as T1 filing deadline	Required if foreign property cost exceeds $\$100,000$ CAD.

• Gather Personal Data: Social Insurance Number (SIN), date of birth, and current address.
• Spouse/Common-Law Partner: Gather their SIN, date of birth, and net income (even if they are filing separately), as this impacts many credits.
• CRA Access: Ensure you have access to your CRA My Account to check for unfiled slips, notice of assessment (NOA) details, and available contribution room.

2. Income Information Slips

Gather all official slips that report income, generally available by late February or early March.

• Employment Income: T4 (Statement of Remuneration Paid)
• Government Benefits:

• • T4A (Pension, Retirement, Annuity, and Other Income – includes scholarships, RESP payments, etc.)
  • T4A(OAS) (Old Age Security)
  • T4A(P) (CPP/QPP Benefits)
  • T4E (Employment Insurance and Other Benefits)
  • T5007 (Workers’ Compensation, Social Assistance)
  • RC62 (Universal Child Care Benefit – now discontinued, but check for old slips)

• Investment Income:

• • T5 (Investment Income)
  • T3 (Trust Income – Mutual funds/Estates)
  • T5008 (Securities Transactions)
  • T4RSP/T4RIF (RRSP/RRIF Income)
  • T4FHSA (First Home Savings Account Statement)

• Self-Employment/Business Income:

• • T2125 (Statement of Business/Professional Activities) – Requires a detailed summary of revenue and expenses.

3. Deductions and Credits

Collect all receipts and supporting documentation for any amounts you wish to deduct or claim as a credit.

• Registered Plan Contributions:

• • RRSP contribution receipts (for contributions made in the year and in the first 60 days of the following year).
  • FHSA contribution receipts.

• Health and Wellness:

• • Medical expense receipts (prescription drugs, dental, vision, travel medical, etc.).
  • Confirmation of eligibility for the Disability Tax Credit (Form T2201).

• Dependants and Family:

• • Childcare expense receipts (must include caregiver’s SIN or Business Number).
  • Adoption expenses.
  • Spousal/Child support payments paid or received.

• Education:

• • T2202 (Tuition and Enrolment Certificate).
  • Receipts for interest paid on student loans.

• Employment/Business Expenses:

• • T2200 (Declaration of Conditions of Employment) signed by your employer, if claiming work-related expenses.
  • Union/professional dues not listed on T4.
  • Home office expenses (simplified or detailed method receipts/calculations).
  • Tradesperson’s tool expenses.

• Other Major Deductions/Credits:

• • Charitable donation receipts.
  • Moving expenses (if moving for work or school).
  • Records for any sale or deemed sale of stocks, bonds, or real estate (Capital Gains/Losses).
  • Interest and carrying charges on loans to earn investment income.

Part 2: Canadian Business Tax Checklist (T2 / Self-Employed)

The checklist for businesses depends on the entity type (Sole Proprietor, Partnership, or Corporation) and its fiscal year-end (FYE).

1. Key Deadlines & General Review

Entity Type	Tax Payment Due	T2/T1 Filing Deadline	Other Filing Deadlines
Corporation (T2)	2 or 3 months after FYE	6 months after FYE	T4/T4A slips due last day of Feb.
Sole Proprietor / Partnership	April 30	June 15	GST/HST: Varies (monthly, quarterly, or annual)

• Confirm FYE: Especially for corporations, ensure you know your official fiscal year-end date.
• CRA Accounts: Ensure access to CRA My Business Account for GST/HST, payroll, and corporate tax installment history.
• Finalize Accounting Records:

• Reconcile all bank accounts, credit cards, and loan balances up to the FYE.
• Ensure all transactions are properly classified (revenue vs. capital, personal vs. business).
• Verify GST/HST collected and paid (Input Tax Credits).

2. Revenue & Receivables

• Sales/Revenue: Finalize all sales records for the year.
• Accounts Receivable: Review the aged accounts receivable list. Write off any bad debts that are legally uncollectible by year-end (requires documentation).
• Accrued Income: Ensure all income earned but not yet invoiced/received is recorded (Accrual basis).

3. Expenses & Liabilities

• Prepaid Expenses/Accrued Expenses: Adjust for expenses paid in advance (e.g., insurance) and expenses incurred but not yet paid (e.g., utility bills, legal fees, interest).
• Accounts Payable: Review the aged accounts payable list.
• Inventory (if applicable): Conduct a physical count as of FYE and value it (usually at the lower of cost or fair market value). Adjust for obsolete or damaged inventory.

4. Capital Assets & Depreciation (CCA)

• Fixed Assets: Review the Fixed Asset Register. List all assets purchased or disposed of during the year (e.g., equipment, vehicles, buildings).
• Capital Cost Allowance (CCA): Calculate and record the maximum allowable depreciation deduction for the year for all asset classes.
• Immediate Expensing: Assess eligibility for the immediate expensing incentive, which allows up to $ 1.5 million of eligible property to be expensed per year (consult a professional for specific rules).

5. Payroll & Owner/Shareholder Items

• T4/T4A Preparation: Prepare and file T4 slips (for employees) and T4A slips (for contractors/pension/fees) by the deadline.
• Shareholder Loans (Corporations): Review any outstanding loans to/from shareholders. Loans from the corporation must be repaid or converted to income/dividends within one year of the corporation’s FYE, or specific tax consequences apply.
• Dividends (Corporations): Record all dividends paid and issue T5 slips.
• Payroll Remittances: Ensure all source deductions (CPP, EI, income tax) were remitted to the CRA on time.

6. Documentation for Deductions

• Vehicle Expenses: Detailed logbook (for a sample period or the whole year) documenting total kilometres driven and business kilometres. Receipts for gas, repairs, insurance, etc.
• Home Office: Calculate expenses (rent, utilities, insurance, maintenance, etc.) based on the percentage of the home used exclusively for business.
• Contracts & Invoices: Maintain all supporting documents for all income and expense claims.

7. Tax Planning & Filing

• Financial Statements: Prepare the final Income Statement and Balance Sheet.
• Tax Estimate: Work with an accountant to estimate the final tax liability and plan for payment.
• Tax Credits: Review eligibility for specific credits (e.g., Scientific Research & Experimental Development (SR&ED), Provincial Tax Credits).
• Losses: Track and utilize any prior-year losses being carried forward.

Disclaimer: This checklist is for organizational purposes only and should not be considered legal or professional tax advice. Always consult with a qualified Canadian tax professional (e.g., a CPA) to ensure you meet all your specific tax obligations and maximize your benefits.