Your Wealth, Our Passion

By iA Private Wealth, May 2,^nd, 2025

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It’s tax season, and no matter how many times you’ve gone through the ritual of preparing your income tax return, our refresher will help get you organized and on track for what will hopefully be a smooth and painless experience.

Reference materials

It may help to have last year’s return handy as a guide to figuring out which slips and forms you may require for this year’s return, and which lines must be completed on those forms. Of course, circumstances can change but knowing what you needed last time is a good starting point for gathering info.

Similarly, last year’s CRA Notice of Assessment could help. Each notice contains valuable info, such as your RRSP deduction limit for the next tax year, the amount of unused net capital losses that can be applied to reduce future taxable capital gains, and the correction of mistakes you might have made on your return. Finally, note any tax installments you paid over the year as well as any relevant correspondence you received from the CRA.

Here’s a checklist to help gather your tax slips, forms and other required info that’ll be used when completing your income tax return.

Federal tax slips

• T3: Investment income (allocations, distributions) received during the tax year
• T4: Employment income (also includes CPP/EI premiums paid, income tax deducted, pension adjustment amount, charitable donations made through payroll, etc.)
• T4A: Pension, retirement, annuity and other income received
• T4A(OAS): Old Age Security pension benefits
• T4A(P): Canada Pension Plan benefits
• T4E: Employment Insurance benefits
• T4RIF: Income received from a RRIF
• T4RSP: Income received from an RRSP
• T5: Investment income (e.g., interest earned from bank accounts and GICs; corporate-class mutual fund distributions)
• T2202: Tuition and related fees (or a TL11 form if you studied outside of Canada)
• T5013: Statement of Partnership Income

Receipts/documentation

• RRSP receipts for contributions made in previous calendar year, up to first 60 days of current year
• Investment-related expenses, including loans used for investing purposes
• Child care and/or adoption expenses
• Child support, alimony/spousal support payments
• Medical expenses
• Moving expenses
• Charitable donations, political contributions
• Professional or union dues not on your T4 slip
• Digital news subscription fees
• Business income and related expenses
• Rental income and related expenses
• Investment counsel fees and carrying charges
• Documents pertaining to the sale of real estate 

Work-from-home expenses

Regarding the deduction for home office expenses that was introduced during COVID-19, be sure to follow the new rules.  According to the CRA, eligible employees who worked from home in 2024 must continue to use the detailed method to claim home office expenses.Remember that the temporary flat rate method, valid during the 2020 to 2022 tax years, no longer applies. Visit the Government of Canada website to learn more about eligible expenses and other important information concerning work-from-home expenses.

Capital gains inclusion rate

The 2024 Federal Budget proposed to raise the capital gains inclusion rate for corporations and trusts to 66.67% from 50%. For individual taxpayers, it proposed the same increase on the portion of capital gains realized in the year that exceed $250,000 (for capital gains realized on or after June 25, 2024).

There has been much uncertainty regarding this proposed increase, leaving many Canadians unsure of what to do. While some have proceeded with their transactions assuming the rate increase would apply for tax year 2024, others have waited for more definitive direction from the federal government. On January 31, 2025, it was announced that the timing of the capital gains inclusion rate increase will be deferred from June 25, 2024 to January 1, 2026. This may be welcome news, but it’s still recommended to consult with your Investment Advisor and tax professional to determine how best to proceed given your unique circumstances.

Our checklist is a basic compilation of common slips, receipts and other documents you may need while completing your income tax return, but it isn’t exhaustive. Not all items will apply to you, and you might need additional information to file your return. We recommend consulting a qualified professional to help ensure you complete your return accurately and fully, claiming all deductions and credits for which you’re eligible.

As the new year begins, it's a perfect time to reassess your personal finances. This annual review can help you understand your financial health, set new goals, and make necessary adjustments to ensure you're on track to meet your wealth planning objectives. Here’s a guide to help you get started and understand how an investment advisor can be instrumental in this process.

1. Review Your Financial Situation
   Start by taking a comprehensive look at your current situation, including:
• Income and expenses: List all sources of income and track your monthly expenses. Categorize your spending to identify areas where you can cut back.
• Debt: Make a list of all your debts, including credit cards, student loans, and mortgages. Note the interest rates and minimum payments for each.
• Savings and investments: Review your savings accounts, retirement funds, and any other investments. Assess their performance and determine if they align with your goals.
• Net worth: Calculate your net worth by subtracting your total liabilities from your total assets. This gives you a snapshot of your financial health.
2. Set Financial Goals
   Once you have a clear picture of your finances, set measurable, achievable, relevant, and time-bound goals. These might include:
• Short-term goals: Building an emergency fund, paying off high-interest debt, or saving for a vacation.
• Medium-term goals: Saving for a down payment on a house, funding education, or purchasing a car.
• Long-term goals: Retirement planning, investing for future wealth, or estate planning.
3. Create a Budget
   A budget is a crucial tool for managing your finances. It helps you allocate your income towards expenses, savings, and debt repayment. Use the 50/30/20 rule as a guideline:
• 50% for needs: Essentials like housing, utilities, groceries, and transportation.
• 30% for needs: Non-essential expenses like dining out, entertainment, and hobbies.
• 20% for savings and debt repayment: Building your emergency fund, retirement savings, and paying off debt.
4. Monitor and Adjust
   Regularly monitor your budget and financial progress. Life changes, such as a new job, marriage, or the birth of a child, can impact your finances. Be prepared to adjust your budget and goals as needed.

How an Investment Advisor Can Help
An advisor can provide valuable guidance and support in managing your finances by way of:

• Professional advice
  Investment advisors have the experience and training to help you make informed decisions. They can provide insights into investment opportunities, tax strategies, and retirement planning. Their knowledge can help you navigate complex financial situations and avoid common pitfalls.
• Personalized Plan
  An advisor can create a plan tailored to your unique goals and circumstances. This plan will outline specific steps to achieve your objectives, such as saving for retirement, buying a home, or funding your children’s education.
• Accountability and Discipline
  Working with an advisor can help you stay accountable to your financial goals. They can provide regular check-ins and updates, ensuring you remain on track. This accountability can be especially helpful in maintaining discipline with your spending and saving habits.
• Stress Reduction
  Managing finances can be stressful, especially when dealing with debt or planning for the future. An advisor can alleviate some of this stress by providing clarity and direction. They can help you prioritize your goals and develop a clear action plan.
• Long-Term Relationship
  Building a long-term relationship with an advisor can be beneficial as your financial needs evolve. They can adjust your wealth plan as your life circumstances change, ensuring your strategy remains aligned with your goals.

Starting the new year with a reassessment of your personal finances is a proactive step towards achieving financial stability and success. By reviewing your financial situation, setting goals, creating a budget, and monitoring your progress, you can take control of your financial future. Enlisting the help of an iA Private Wealth advisor can provide skillful guidance, personalized planning, and the support needed to stay on track. Make this year the year you take charge of your finances and work towards a secure and prosperous future.