What you need to know this tax season, and how to plan for the next one

If you haven't filed your tax return yet, this Easter weekend might be time to check that off your to-do list. 

Canadians have until May 2 to file their taxes, thanks to the traditional deadline of April 30 falling on a Saturday. For those who are self-employed, that deadline is June 15.

But before you rush to your tax-filing platform of choice, here are a few answers to questions you may have about filing your tax return this year and how to best prepare for the next one. 

The tax deadline especially matters in the case of Canadians who owe money in taxes because filing late can come with penalties. If you're expecting a net positive tax return, filing late can delay any money you're getting back. 

Andrew Bauer, an associate professor of accounting at the University of Waterloo, says the financially savvy thing to do is get your tax credit as soon as possible. 

"Our refund is an interest-free loan that you gave to the government," said Bauer. "The longer you wait to get your money back, the more the opportunity cost is being wasted."

However, filing too early can also have its drawbacks. It can sometimes lead to missed information, such as an income slip or a deductible you can claim, said Bruce Ball, the vice president of taxation at the Chartered Professional Accountants of Canada.

"If you realize afterwards there was other income that you didn't put on your tax return, you should go back and amend your tax return or to report it," said Ball. 

There aren't many changes this year to the tax system, said both tax experts. The Canadian Revenue Agency outlines on their website some of the changes to available incentives.

If you received a COVID-related support payment in 2021, you should have received a T4 by now. 

Anyone who repaid a COVID benefit is eligible to claim a tax deduction in the same year the repayment was made or in the year the benefit was received. 

Canadians continue to be eligible to receive a tax credit for home office expenses incurred while working from home. Using the simplified method, you can claim up to $500 this year if you worked at home for at least 50 per cent of the time over a stretch of four weeks or more. 

Residents of Ontario, Manitoba, Saskatchewan and Alberta are eligible this year to receive the climate action incentive payment, a credit meant to help offset the cost of federal pollution pricing. However, the payment will be disbursed in quarterly instalments this year and the amount will depend on the province of residence, marital status and the number of children in the household. 

Part of maximizing your tax return is figuring out which tax-advantaged savings account is right for you in any given year.