A guide from Nguyen Scott LLP to help you navigate your taxes with confidence.
Taxes can be tricky—but they don’t have to be overwhelming. At Nguyen Scott LLP, we believe every Canadian should feel confident and informed when it comes to their personal and business taxes. Whether you’re preparing your return yourself or seeking professional tax advice, understanding the basics of the Canadian tax system is key to avoiding mistakes and maximizing your refund.
Here are the top 10 things every Canadian should know about taxes, based on the latest information from the Canada Revenue Agency (CRA).
- Not All Income Is Taxable—but Most of It Is
Many Canadians are surprised to learn that certain types of income aren’t taxable. For example, lottery winnings, gifts, and most inheritances are not considered taxable income. However, employment income, self-employment income, investment earnings, rental income, and government benefits like EI (Employment Insurance) are taxable and must be reported on your return.
Tip: When in doubt, report it. The CRA requires full disclosure, and failing to report income could result in penalties or audits.
- The Tax Filing Deadline Is April 30
For most individuals, the annual tax deadline is April 30. If you or your spouse/common-law partner are self-employed, you have until June 15 to file—however, if you owe taxes, interest will start accruing after April 30.
Tip: Filing late can lead to hefty penalties and interest charges. It’s best to file early or on time, even if you can’t pay your full balance immediately.
- Over-the-Counter Vitamins Are Not Claimable Medical Expenses
While the CRA allows you to claim many medical expenses—including dental care, prescription medication, and hearing aids—over-the-counter vitamins and supplements do not qualify for the medical expense tax credit.
Tip: Keep receipts for eligible medical expenses throughout the year to make tax time easier and more accurate.
- There Are Penalties for Filing Late
If you owe taxes and file your return after the deadline, the CRA will charge a late-filing penalty of 5% of the balance owing, plus 1% for each full month your return is late (up to 12 months).
Tip: Even if you can’t pay right away, file your return on time to avoid additional penalties.
- TFSA Contributions Aren’t Tax-Deductible—But They’re Still Powerful
Contributions to a Tax-Free Savings Account (TFSA) are not tax-deductible, but the earnings and withdrawals are tax-free. Plus, unused contribution room carries forward, so you can catch up later if needed.
Tip: The TFSA is a great place to grow investments tax-free—especially for young earners or retirees looking for flexibility.
- The Canada Child Benefit (CCB) Is Not Taxable Income
The Canada Child Benefit is a tax-free monthly payment made to eligible families with children under 18. It helps cover the cost of raising kids and is based on your household income.
Tip: Make sure you file your taxes every year—even if you don’t owe—to keep receiving your CCB and other benefits.
- EI Benefits Are Taxable and Must Be Reported
If you receive Employment Insurance (EI) during the year, that income is fully taxable and must be included on your return. The CRA will usually withhold a small amount of tax from your EI payments, but it may not cover your full tax liability.
Tip: Set aside a portion of your EI payments if possible to avoid surprises come tax season.
- The Basic Personal Amount in 2024 Is $14,398
The Basic Personal Amount (BPA) is the portion of income that all Canadians can earn tax-free. For 2024, it’s $14,398. This amount is automatically applied to your tax return and reduces the amount of income on which you’ll pay tax.
Tip: Be sure your employer is applying your basic personal amount correctly on your TD1 form.
- You Can Carry Forward Unused Tuition, TFSA, and RRSP Amounts
Can’t claim all your tuition or RRSP deductions this year? No problem. CRA allows you to carry forward unused tuition, RRSP contribution room, and TFSA limits to future years. This flexibility helps Canadians maximize their deductions when their income is higher.
Tip: Keep track of your carry-forward balances using CRA’s My Account tool or ask your accountant.
- Professional Help Can Maximize Your Refund and Minimize Mistakes
Taxes are complicated—especially if you’re self-employed, own property, have multiple income sources, or support dependents. Working with a Chartered Professional Accountant (CPA) can help ensure your return is accurate, complete, and optimized to reduce what you owe or increase your refund.
Tip: CPAs stay on top of changing tax rules, CRA updates, and deduction strategies so you don’t have to.
Ready to Get the Most Out of Your Taxes?
At Nguyen Scott LLP, we make taxes simple, strategic, and stress-free. Whether you’re filing as an individual, business owner, or family—we’re here to help.
📞 Book your free 30-minute consultation today to find out how our CPA team can help you maximize your return, minimize your taxes, and keep your finances on track.
✅ Visit us at https://nsllp.ca/ or call us at 780-458-5479 to schedule your complimentary consult.
Nguyen Scott LLP — Trusted Chartered Professional Accountants proudly serving St. Albert, Leduc, Drayton Valley, and the surrounding Edmonton Metropolitan Region.