Tax season: 6 tips to get the most out of your tax returns

With tax season upon us, many Quebecers will soon be busy gathering their documents in preparation for filing their income tax return.

• Also Read: SMEs cannot apply for tax credits due to time constraints

In an interview with LCN, tax expert for H&R Block Yannick Lemay offers 6 tips to keep in mind before filing your return to ensure you get the most out of available deductions.

Make sure you sometimes forget the documents in hand

“There are over 400 credits and deductions available to Canadians and Quebecers so it's sometimes easy to forget some things. We often forget about credits and deductions that we don't receive tax slips by mail or email. For example, I'm thinking of charitable donations or medical receipts, which force us to dig through our paperwork.

Pay attention to things that have changed

“There are things we no longer care about with Covid, like interest on student loans. There has been a holiday in recent years, but in 2023 we start repaying this interest. If we pay something in 2023, we may have to think about getting our statements back for future taxes.

Be aware of new developments

“In Quebec […], the first two tax brackets are reduced by one percent. This is a tax savings that will be reflected in the pockets of many Quebecers.”

Mr Lemay also suggests that certain credits paid outside income tax returns have also improved.

“We have, among other things, with COVID in recent years, different programs that the government has paid for outside of the income tax return,” he said. Other programs such as the Solidarity Tax Credit and the Tax Credit for Work Premium will continue, which can be received early.

Take advantage of discounts linked to teleworking

“For the past two years, we were eligible for a temporary or simplified method that allowed us to qualify for a deduction calculated on the basis of two dollars per day based on the number of days we were teleworking per year, but this method is no longer available.

“We now need a signed form from our employer and we calculate the actual expenses we incurred during the year.”

Check if you have uncashed cheques

“Revenue Canada has a whole program set up for people who don't cash checks sent to them. When you connect directly to our online file My File, there's a tab added to your name for checks that are payable but haven't been cashed.

Contribute to RRSP by February 29

The deadline for calculating RRSP contributions for the year 2023 is February 29, meaning that any amount paid after this date will be calculated for the 2024 tax year.

Although tax returns have already been filed, they will be processed electronically from February 19.

Watch the full interview in the video above