Prepare Your Tax Return in Toronto

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Tax season is approaching, and staying ahead of deadlines and tax changes can help you maximize your refund and avoid penalties. Whether you’re a salaried employee, self-employed, or an investor, this 2025 tax return guide for Toronto residents will help you file with confidence.

Key Tax Deadlines for the 2025 Tax Season

✅ Personal Income Tax Filing Deadline: April 30, 2025
✅ Self-Employed Tax Filing Deadline: June 16, 2025 (since June 15 falls on a Sunday, the deadline is extended to the next business day)
✅ RRSP Contribution Deadline: March 1, 2025 (for the 2024 tax year)

Late filing can result in penalties and interest charges from the Canada Revenue Agency (CRA), so it’s crucial to meet these deadlines.

What’s New for the 2025 Tax Season?

Every year, the CRA introduces tax updates that impact Toronto taxpayers. Here are some key changes for 2025:

✅ Higher Basic Personal Amount

The basic personal amount (BPA) increases each year to adjust for inflation. For 2024 income, expect an increase from the previous $15,000, reducing taxable income for most Canadians.

✅ Expanded Canada Workers Benefit (CWB)

The CWB provides tax relief for low-income workers. More taxpayers may automatically receive advance payments if eligible.

✅ Home Office Expense Deduction Rules

The temporary flat-rate method is no longer available. Employees working from home must use the detailed method, requiring a T2200 form from their employer.

✅ Higher RRSP and TFSA Contribution Limits

TFSA Limit for 2025: Expected to increase (confirm with CRA updates).
RRSP Contribution Limit for 2024 Tax Year: Up to 18% of your earned income, with a maximum cap set by the CRA.

✅ Updated First-Time Home Buyer Tax Credit

If you purchased a home in 2024, you may qualify for an increased First-Time Home Buyers’ Tax Credit (HBTC), helping offset closing costs.

Maximizing Your 2025 Tax Refund in Toronto

💡 To reduce your tax bill, claim the following deductions and credits:

🔹 RRSP Contributions

Contributions made by March 1, 2025, lower your 2024 taxable income, reducing the amount you owe.

🔹 Child Care Expenses

Parents can claim daycare, nannies, and summer camps as tax deductions.

🔹 Medical Expenses

Claim eligible dental, prescription, and therapy expenses not covered by insurance.

🔹 Union Dues & Professional Fees

Union and professional membership fees are deductible.

🔹 Investment & Rental Property Deductions

Toronto landlords can claim mortgage interest, property taxes, and maintenance costs.

🔹 Moving Expenses

If you moved 40km closer to work or school, you may be eligible for moving expense deductions.

Should You File Your Taxes Yourself or Hire a Tax Professional?

Toronto taxpayers have two options when filing their 2025 tax return:

✅ Do-It-Yourself (DIY) Tax Filing

Use NETFILE-approved tax software (TurboTax, Wealthsimple Tax, H&R Block).
Best for simple tax situations (salary, basic deductions, single T4 slip).

✅ Hire a Tax Professional

Ideal for self-employed individuals, investors, rental property owners, and business owners.
Ensures accuracy, maximized deductions, and CRA compliance.
Reduces the risk of tax audits or CRA reassessments.

Need Help With Your 2025 Tax Return in Toronto?

Filing taxes can be complex, but you don’t have to do it alone! At Perfect Accounting, our expert tax professionals can help you:

✔ Maximize your refund
✔ Ensure CRA compliance
✔ Avoid tax penalties and audits

📞 Call us at (416) 463-3330 or
📩 Email us at info@perfectaccounting.ca to book your consultation today!