How to Maximize Your 2024 Tax Return

Tax season is here, and if you’re like many Canadians, you might wonder whether you’re truly maximizing your tax savings. With over 400 deductions available from the Canada Revenue Agency (CRA), it’s easy to miss opportunities that could lower your tax bill. Whether you’re an individual, investor, business owner, or student, there are specific deductions and credits that could significantly impact your 2024 tax return.

Here are some key areas to discuss with your accountant before the April 30, 2025 deadline:

1. Family, Childcare, and Caregiver Benefits

Caregivers may include any childcare expenses including daycare, camps, and babysitting. Those supporting a dependent with a physical or mental impairment are eligible for additional benefits.

2. Education Expenses

Education expenses, such as tuition, can be recorded in the 2024 tax return. Students should provide tuition slips to claim education credits. These slips are typically available through your university or college’s online portal and are an important part of your 2024 tax return documentation.

Additionally, those who have made student loan payments can include interest repayments in their T1 to get a 15% tax credit.

3. Charitable Donations

If you’ve made donations in 2024, be sure to gather receipts for all eligible donations for your tax return. Remember that donations only count if they’ve been made to registered charities.

4. Disability-Related Deductions

If you or a dependent have a disability, you could qualify for the Disability Tax Credit (DTC) and other medical expense deductions.

5. Pension and Savings Plans

If you contributed to an RRSP in 2024, download your RRSP slip so that you can submit this alongside your T1 tax return. Pensioners should also include their OAS and CPP slips when preparing their return.

6. Employment Income and Expenses

• T4 Slips: Ensure all employment income is reported.
• T5 Slips: Dividends from a business (for business owners that pay themselves in dividends instead of a salary)
• Work-from-Home Expenses: If you worked from home, calculate your workspace percentage for eligible home office expenses.
• Vehicle for Work: Keep mileage logs and receipts for expenses.
• Out-of-Pocket Costs: Maintain records of travel, meals, and conference expenses that could be deducted from your 2024 tax return.

If you plan to claim work-related expenses, be sure to get a signed T2200 (Employment Expense Form) form from your employer. This will be included with your T1 return, so be sure to start the process as soon as possible. Note that these claims are only available to those who have not been reimbursed by their company.

7. Medical Expenses

Eligible expenses include dental and prescription drug costs, out-of-pocket medical expenses such as doctor and optometrist visits, medical devices like mobility aids, and medical insurance premiums.

8. Investments

To ensure your 2024 tax return accurately reflects your investment income, prepare a clear summary of your capital gains and losses. This means organizing stock sales, including the quantity sold, selling price, commissions, and the resulting gain or loss. Many brokers provide these reports along with the cost basis, and some online platforms also offer helpful summaries. However, if you don’t receive a ready-made report, creating your own spreadsheet with this information can help ensure accurate reporting on your tax return.

One common mistake investors make is not properly calculating the weighted average cost of stocks sold throughout the year. This method involves averaging the purchase prices of all stocks in a particular company to determine the cost basis for any stocks sold. For example, if you bought 10 shares of ABC Company at $10 each, another 10 shares at $12, and another 10 at $14, you would calculate the weighted average cost as follows: ($100 + $120 + $140) ÷ 30 shares = $12 per share. Accurately tracking this cost basis is crucial for correctly reporting your gains or losses to the CRA.

9. Real Estate Income and Sales

If you own rental properties, provide an income statement with revenues and expenses.

For property sales, bring closing documents and the sale agreement to help calculate gains or losses.

10. Foreign Assets and Income

If the cost of your foreign assets exceeded $100,000 at any point in 2024, you must file a T1135 Foreign Income Statement with your tax return to avoid penalties of up to $2,500. Ensure your accountant has your foreign income wage slips, as well as copies of your foreign tax return and notice of assessment to claim the Foreign Tax Credit.

11. Crypto Traders

We recommend that crypto day traders prepare an income statement showing their profits and losses for 2024. Consider using crypto bookkeeping software like Koinly to simplify this process. (Not sponsored).

12. Sole Proprietors

Start by providing your accountant with an income statement that outlines your business’s revenues and expenses for the year. This document is crucial for calculating your taxable income and identifying potential deductions.

Additionally, if you’ve made any asset purchases, such as equipment or machinery, be sure to include these details for depreciation purposes. Depreciation allows you to spread the cost of these assets over their useful life, reducing your taxable income each year.

Don’t forget to track home office and vehicle expenses if applicable. Home office expenses can include a portion of rent, utilities, and maintenance, while vehicle expenses might cover fuel, insurance, and maintenance costs related to business use. Keeping detailed records of these expenses can significantly improve your 2024 tax return outcome.

Accessing Your Slips through MyCRA

You can download most slips, such as T4, T5, OAS, CPP, and RRSP, directly from your CRA My Account. Alternatively, if your accountant has CRA Connect, they can import your slips directly into their software, saving you time and hassle.

Need Help with Your 2024 Tax Return Filing?

At Madan CPA, we’re here to make filing your 2024 tax return as smooth as possible.Whether you need help organizing your documents or want a consultation before filing, our team is ready to assist.

Click here to book a free consultation, or reach out to your accountant to get started if you’re already a client.

Don’t leave money on the table this tax season—maximize your return with our expert guidance!