Complete Guide to Personal Tax Return Preparation and Filing in Canada, Alberta & Edmonton

Your Comprehensive Resource for Personal Tax Filing Success

Are you searching for expert guidance on personal tax return preparation and filing in Canada? Whether you’re an Edmonton resident, an Alberta taxpayer, or a Canadian citizen seeking professional tax assistance, this comprehensive guide will walk you through everything you need to know about filing your personal income tax return accurately and on time. At BOMCAS Canada, we specialize in personal tax return preparation and filing services for Edmonton and across Alberta, helping individuals maximize their deductions, minimize their tax liability, and ensure complete CRA compliance.

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Introduction to Personal Tax Return Preparation

Personal tax return preparation and filing is an essential responsibility for all Canadian taxpayers with taxable income or eligibility for tax credits and benefits. For residents of Edmonton and Alberta, understanding the tax filing process is crucial to ensuring compliance with Canada Revenue Agency (CRA) requirements while maximizing your tax benefits and refunds.

Filing your personal income tax return isn’t just about meeting a legal obligation—it’s a financial opportunity. By properly preparing and filing your return, you ensure that you claim all eligible deductions and credits, potentially resulting in a significant tax refund or reducing the amount you owe. Many Canadian taxpayers miss out on thousands of dollars in available credits and deductions simply because they don’t understand what they can claim.

BOMCAS Canada and BOMCAS Edmonton have spent over 15 years helping individuals throughout Edmonton, Sherwood Park, St. Albert, Leduc, and surrounding Alberta communities navigate the complexities of personal tax return preparation. Our team of experienced tax accountants understands both federal and provincial tax requirements and works diligently to ensure every client receives accurate, compliant tax filings with maximum tax benefits.

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Understanding the Canadian Tax System Basics

How Canada’s Two-Tier Tax System Works

Canada implements a progressive tax system with both federal and provincial taxation. This means that when you file your personal income tax return, you’re actually dealing with two levels of government taxation: federal income tax collected by the Canada Revenue Agency (CRA) and provincial income tax collected by Alberta or your province of residence.

For most Canadian taxpayers (except Quebec residents), you file a single unified tax return with the CRA that includes both federal and provincial tax calculations. The CRA then remits the provincial portion to your province of residence. This system simplifies the filing process compared to filing two separate returns.

Tax Residency Status in Canada

Your residency status determines which province’s tax rates and credits apply to your personal tax return. For tax purposes, your province of residence is determined by your “significant residential ties” as of December 31 of the tax year. These ties include:

• Primary residence: Where you live (own or rent)
• Family location: Where your spouse, common-law partner, and dependents live
• Community ties: Where you work, vote, and maintain social connections
• Financial ties: Where your bank accounts, investments, and vehicle registration are located

For Edmonton and Alberta residents, if you maintain your primary residence in Alberta as of December 31, you’ll be taxed as an Alberta resident regardless of where you temporarily work. This distinction is important because Alberta has some of the lowest tax rates in Canada, making it advantageous for residents to maintain their Alberta tax residency status.

Income Types Subject to Canadian Taxation

Your personal tax return must report all income received during the calendar year (January 1 through December 31), including:

• Employment income: Wages, salaries, and commissions from your employer
• Self-employment income: Income from your own business or freelance work
• Investment income: Interest, dividends, and capital gains from stocks or bonds
• Pension and retirement income: Withdrawals from RRSPs, RRIFs, and pensions
• Rental income: Income from renting out property
• Other income: Scholarships, awards, alimony, and other sources

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Key Deadlines for Personal Tax Return Filing

Tax Year Filing Deadlines

For your 2024 personal tax return, the CRA has set the following critical deadlines:

Filing Milestone	Deadline	Important Notes
Online filing begins (NETFILE)	February 24, 2025	CRA starts accepting electronic returns
Tax return filing deadline	April 30, 2025	General deadline for most individuals
Self-employed filing deadline	June 15, 2025	Extended deadline for self-employed taxpayers
Payment due date	April 30, 2025	All taxes owed must be paid by this date, regardless of filing status

Important: Since June 15, 2025 falls on a Sunday, self-employed taxpayers will be considered on time if the CRA receives their return on or before June 16, 2025. However, any amount owing must still be paid by April 30, 2025, or interest will accrue.

Consequences of Missing the Filing Deadline

Missing the April 30 or June 15 filing deadline results in serious penalties and financial consequences:

• Late-filing penalty: 5% of unpaid taxes, plus 1% per month (maximum 12 months) if you file more than one year late
• Interest charges: Interest accrues daily on any unpaid tax balance at the Bank of Canada rate plus 4%
• Lost benefits: You may miss out on tax refunds and government benefits, including the Canada Child Benefit and GST/HST credits
• Collections action: The CRA may take collection action against you, including garnishing wages or seizing assets

For Edmonton and Alberta residents, marking these dates on your calendar and planning accordingly is essential. At BOMCAS Canada, we help clients meet deadlines well in advance, ensuring you avoid penalties and maximize your tax benefits.

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Who Must File a Personal Income Tax Return in Canada?

Canadian Residents Who Must File

You must file a personal income tax return if you’re a Canadian resident and any of the following applies:

1. You owe tax: You had total income that exceeds your basic personal amount and other non-refundable credits
2. You received government benefits: You’re eligible for the Canada Child Benefit, Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, or provincial benefits
3. You had taxes deducted: Your employer deducted income tax from your wages through regular payroll deductions
4. You’re self-employed: You had self-employment income or must pay Canada Pension Plan (CPP) contributions
5. You’re claiming tax relief: You’re entitled to claim loss carryback or wish to claim capital losses against future income
6. Your spouse is self-employed: Both spouses must file if either is self-employed, even if they have no other income

Even If You Don’t Owe Tax—File Anyway!

Even if you don’t owe any tax, you should file a personal tax return if you might be eligible for refundable tax credits, including:

• Canada Child Benefit (CCB): Monthly payments for parents with children under 18
• GST/HST Credit: Quarterly payments available to low and middle-income earners
• Canada Workers Benefit: Supplement for low-income workers
• Provincial benefits: Various Alberta-specific credits and benefits
• Guaranteed Income Supplement: For seniors over 65

Filing your return, even when you don’t owe tax, can result in thousands of dollars in government payments. This is one of the most common missed opportunities for Canadian taxpayers.

Non-Residents of Canada

If you’re a non-resident of Canada, you may still need to file a Canadian tax return if you had Canadian-source income such as:

• Employment income from a Canadian employer
• Rental income from Canadian real estate
• Self-employment income from a Canadian business
• Capital gains from selling Canadian property

Non-resident tax return preparation requires specialized knowledge of cross-border tax rules and obligations. BOMCAS Canada offers comprehensive non-resident tax services for individuals with Canadian tax obligations while living abroad.

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Federal and Alberta Tax Rates for 2025

Federal Income Tax Brackets and Rates

Canada’s federal personal income tax uses a progressive rate system where different portions of your income are taxed at different rates. For the 2025 tax year, the federal tax brackets are:

Federal Taxable Income	Federal Tax Rate
$0 to $57,375	15%
$57,375 to $114,750	20.5%
$114,750 to $177,882	26%
$177,882 to $253,414	29%
$253,414+	33%

Alberta Provincial Income Tax Brackets and Rates

As an Edmonton or Alberta resident, your provincial tax rates are significantly lower than many other Canadian provinces. For 2025, Alberta’s provincial tax brackets are:

Alberta Taxable Income	Alberta Tax Rate
$0 to $151,234	10%
$151,234 to $181,481	12%
$181,481 to $241,974	13%
$241,974 to $362,961	14%
$362,961+	15%

Important: The Government of Alberta announced in February 2025 that a new tax rate of 8% will be applied to the first $60,000 of Alberta taxable income starting in 2025, making Alberta’s tax system even more competitive.

Combined Federal and Alberta Tax Rates

When you combine federal and provincial rates, here’s what a typical Edmonton or Alberta resident pays:

Annual Income	Combined Tax Rate	Effective Rate
$40,000	20-25% (marginal)	~13% (average)
$80,000	31-35% (marginal)	~22% (average)
$120,000	36-39% (marginal)	~28% (average)
$200,000	44-47% (marginal)	~35% (average)

Understanding these rates is crucial for tax planning. Every dollar earned doesn’t result in the same tax rate—only each incremental dollar is taxed at the marginal rate.

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Essential Documents for Personal Tax Return Preparation

Tax Information Slips You’ll Receive

To properly prepare your personal income tax return, you’ll need to gather various tax information slips from employers, financial institutions, and government agencies. These slips document your income and are reported to both you and the CRA:

Employment Income Slips

• T4 Slip: Issued by your employer showing your employment income, tax deductions, and employment insurance premiums
  • Timeline: Employers must issue T4s by February 28 annually
  • When to expect: Usually arrives in late February or early March
  • Copies: Comes in multiple copies—keep one for your records
• T4E Slip: Issued by Service Canada showing Employment Insurance (EI) benefits received during the year
  • What it shows: Total EI benefits and taxable amount
  • Required if: You received any EI benefits during the year
• T4A Slip: Issued for non-employment income such as:
  • Pension income
  • Registered Retirement Savings Plan (RRSP) withdrawals
  • Scholarships and bursaries
  • Retiring allowances
  • Annuity payments

Investment and Savings Income Slips

• T5 Slip: Shows interest income from savings accounts, GICs, and bonds
  • Income reported: Interest earned during the calendar year
  • Boxes to watch: Box 12 (interest income) is always taxable
• T3 Slip: Shows income distributions from mutual funds, trusts, and partnerships
  • Multiple types: Different boxes show dividends, capital gains, and other income types
  • Tax impact: Even though you don’t receive cash, these distributions are taxable
• T5008 Slip: Reports investment transactions and proceeds from selling securities
  • When issued: By mutual fund and investment companies when you sell securities
  • Capital gains: Used to calculate capital gains or losses

Government Benefit Slips

• T4A(OAS) Slip: Shows Old Age Security (OAS) benefits received
  • Age requirement: Only seniors aged 65+ receive OAS
  • Taxable: OAS is fully taxable income
• T4A(P) Slip: Shows Canada Pension Plan (CPP) benefits received
  • Minimum age: Generally available at age 60 or later
  • Taxable: CPP benefits are fully taxable income

Other Important Documentation

• Mortgage interest statements: For calculating deductions (if applicable)
• Charitable donation receipts: Required to claim charitable donation tax credits
• Medical expense receipts: Needed to claim medical expense tax credits
• Education receipts: For tuition, textbooks, and education tax credits
• Rental property records: Income and expense documentation for rental income
• Self-employment records: Income statements and expense receipts for self-employed individuals

Documents You Should Keep on File

Beyond the T-slips, maintain comprehensive records for at least six years from the date you file your return:

• Bank statements: Proof of deposits and withdrawals
• Investment statements: Showing purchases, sales, and holdings
• Receipts and invoices: For any claimed expenses or deductions
• Cancelled checks: Supporting various payments and transactions
• Credit card statements: Showing business and personal expenses
• Employment records: Offer letters, contracts, and employment termination documents
• Professional fees: Receipts for accounting and legal services
• Travel and meal records: For business-related expenses
• Vehicle records: Mileage logs and fuel receipts for vehicle deductions

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Common Tax Deductions and Credits for Canadian Taxpayers

Understanding Deductions vs. Credits

Before diving into specific deductions and credits, it’s important to understand the difference:

• Deductions: Reduce your taxable income, lowering the amount subject to tax
• Credits: Reduce your tax payable dollar-for-dollar (non-refundable) or can result in a payment to you (refundable)

Example: If you’re in the 30% tax bracket and claim a $1,000 deduction, you save $300 in taxes. A $1,000 non-refundable credit saves you exactly $1,000 in taxes, while a refundable credit could result in a $1,000 payment.

Major Deductions Available to Individuals

RRSP Contributions (Registered Retirement Savings Plan)

• Maximum contribution: 18% of your previous year’s earned income, up to $32,490 (2025)
• Carryforward room: Unused contribution room can be carried forward indefinitely
• Tax benefit: Contributions lower your taxable income dollar-for-dollar
• Filing deadline: Must be contributed by March 2, 2026, to claim on 2025 return
• Strategic benefit: Particularly valuable for higher-income earners seeking to reduce their tax bracket

Self-Employment Expenses

If you’re self-employed, you can deduct:

• Business supplies and materials: Office supplies, software, and business-related purchases
• Home office expenses: Rent/mortgage proportion, utilities, internet, and maintenance
• Vehicle expenses: Fuel, insurance, maintenance, and depreciation (based on business-use percentage)
• Professional fees: Accounting, legal, and consulting services related to your business
• Equipment and tools: Office furniture, computers, and business equipment
• Travel and meals: 50% of meal expenses for business purposes
• Advertising and marketing: Website costs, business cards, and promotional materials
• Professional development: Courses and training related to your business

Employment Expenses (Limited)

While employees cannot deduct most expenses, certain situations allow deductions:

• Home office expenses: If required by your employer and you have no available workspace
• Professional dues: Membership fees for professional associations
• Supplies and tools: If your employment contract requires you to provide them
• Cell phone and internet: If required by employer and used exclusively for business

Medical Expenses

You can claim eligible medical expenses exceeding the lesser of:

• 3% of net income, or
• $2,835 (2025 limit)

Eligible medical expenses include:

• Prescription medications and drugs
• Dental work and orthodontics
• Vision care: glasses, contacts, and eye surgery
• Medical equipment: hearing aids, mobility aids, and medical devices
• Fertility and adoption-related expenses
• Mental health and therapy services
• Travel for medical treatment (over 40 km one way)

Childcare Expenses

Lower-income parents can deduct:

• Daycare and after-school care costs
• Summer camp expenses (educational component only)
• Overnight overnight camps and day programs
• Maximum deductible: $8,000 per child under 16 (or $16,000 if disabled)
• Filer requirement: Only the lower-income spouse can claim

Moving Expenses

You can deduct moving costs when relocating for work:

• Household moving and storage costs
• Travel expenses to relocate
• Temporary accommodation costs
• Real estate commissions (if selling your former residence)
• Property taxes, home insurance, and utilities (limited period)

Interest Paid on Student Loans

Federal and provincial student loan interest paid during the year can be claimed as a 15% federal credit (approximately 20-25% combined with provincial credits depending on your province).

Non-Refundable Tax Credits

Non-refundable tax credits reduce your federal tax payable by 15% of the eligible amount. Key federal credits include:

Basic Personal Amount (BPA)

• Amount: $15,705 (2025) for federal purposes
• Alberta amount: $21,885
• Benefit: Automatically claimed—represents your basic living exemption
• Indexing: Increases annually with inflation
• Clawback: Gradually reduced for high-income earners over $246,752

Spouse or Common-Law Partner Amount

• Amount: Up to $15,705 if spouse has low income
• Application: Reduces tax for supporting a spouse with low income
• Requirement: Only one spouse can claim the amount for the other

Amount for Eligible Dependants

• Eligibility: For single parents or caregivers supporting dependents
• Amount: Up to $15,705 per eligible dependant
• Requirement: Dependent must reside with you and have low income

Age Amount (65+)

• Amount: $7,637 (2025) for seniors aged 65 and over
• Income limit: Phased out for high-income earners
• Spousal transfer: Can be transferred to spouse if not fully used
• OAS clawback: May be recovered if OAS is received

Caregiver Amount

• Purpose: Support for individuals caring for infirm relatives
• Eligible relationships: Parents, grandparents, siblings, aunts, uncles, nieces, nephews, in-laws
• Requirement: Dependent must live with you and have low income

Disability Tax Credit (DTC)

• Amount: $9,368 (2025)
• Application: For individuals with severe and prolonged mental or physical impairments
• Certificate required: Form T2201 must be certified by a physician
• Retroactivity: Can be claimed for up to 10 years back

Tuition and Education Amounts

• Tuition credits: 15% of eligible tuition fees paid to post-secondary institutions
• Education amount: $465 (2025) per month of full-time attendance
• Transfer: Unused credits can be transferred to parents or grandparents
• Carryforward: Credits can be carried forward indefinitely

Charitable Donation Tax Credit

• Amount: 15% of donations up to $200; 29% on amounts over $200
• Documentation: Official receipts from registered charities required
• Limit: Generally 75% of net income; 100% for capital gains donations
• Carryforward: Unused donations can be claimed for 5 years

Medical Expense Tax Credit

• Amount: 15% of qualifying expenses exceeding the threshold
• Threshold: Lesser of 3% of net income or $2,835 (2025)
• Eligible expenses: Prescribed medications, medical equipment, and certain treatments

Refundable Tax Credits

Refundable credits can result in a tax refund even if you owe no tax. Key refundable credits include:

Canada Workers Benefit (CWB)

• Purpose: Supplement for low-income workers
• Amount: Up to $2,417 for single individuals; up to $4,020 for families
• Income requirement: Must have earned income
• Net income limit: Phases out at higher income levels
• File requirement: Must file tax return to receive benefit

GST/HST Credit

• Purpose: Quarterly payments for low and middle-income earners
• Amount: Up to approximately $480 annually per individual
• Income threshold: Based on family net income
• Frequency: Paid quarterly (January, April, July, October)
• Children eligibility: Available even for non-working individuals

Canada Child Benefit (CCB)

Covered in detail below due to its importance for families.

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Tax-Advantaged Savings Accounts: RRSPs and TFSAs

Registered Retirement Savings Plans (RRSPs)

RRSPs are the cornerstone of retirement saving in Canada, offering significant tax advantages:

RRSP Basics

• Contribution limit: 18% of previous year’s earned income, maximum $32,490 (2025)
• Carryforward room: Unused room accumulates indefinitely
• Tax deduction: Contributions reduce your taxable income dollar-for-dollar
• Tax-deferred growth: Investment income inside the RRSP isn’t taxed until withdrawn
• Withdrawal tax: Withdrawals are taxed as regular income at your marginal rate

Strategic RRSP Advantages

Marginal Rate Arbitrage: The real benefit of RRSPs is capturing the difference between your tax rate when contributing and when withdrawing:

• If you contribute when earning $100,000 annually (30% marginal rate) and withdraw in retirement earning $40,000 (20% rate), you save 10% on that income
• Example: A $10,000 RRSP contribution saves $3,000 in taxes at 30% rate; withdraw in retirement and pay $2,000 tax at 20% rate = $1,000 net benefit

Employer Matching: Many employers offer RRSP matching contributions (free money):

• Immediate 50% or 100% return on investment through employer match
• Employer contributions are not taxable benefits
• Vesting terms vary—ensure you understand when employer funds become yours

RRSP Withdrawal Options and Benefits

Home Buyers’ Plan (HBP):

• Withdraw up to $60,000 from RRSP to purchase first home
• Tax-free withdrawal—no immediate tax consequence
• 15-year repayment period (or longer if you have the 3-year grace period)
• Repayments are added back to your RRSP deduction limit

Lifelong Learning Plan (LLP):

• Borrow up to $20,000 from RRSP for full-time education
• Repayment over 10 years
• Available to student and spouse/common-law partner

Mandatory RRSP Maturity Requirements

• Maturity age: December 31 of the year you turn 71
• Options at maturity:
  • Convert to Registered Retirement Income Fund (RRIF) and take regular withdrawals
  • Withdraw funds as taxable lump sum
  • Purchase a life annuity
• RRIF minimums: Mandatory withdrawals begin at age 71, increasing with age

Tax-Free Savings Accounts (TFSAs)

TFSAs are another powerful tax-advantaged account type with different benefits than RRSPs:

TFSA Basics

• Annual contribution limit: $7,000 (2025)
• Carryforward room: Unused room accumulates indefinitely
• Total room for 2025: $109,000 for anyone aged 18+ since 2009
• Tax on contributions: Not tax-deductible (paid with after-tax dollars)
• Tax on growth: Investment income grows completely tax-free
• Tax on withdrawals: All withdrawals are tax-free
• Withdrawal room: Contribution room returns in the following calendar year

TFSA vs. RRSP: When to Choose Each

Factor	RRSP Better	TFSA Better
Income level	High earner (35%+ tax rate)	Low earner (20% or less tax rate)
Timeline	Long-term retirement saving	Short to medium-term goals
Retirement income	Saving for lower future income	Maintaining income in retirement
Government benefits	N/A	Protecting OAS, income-tested benefits
Flexibility	Restricted—Home Buyers’ Plan	Completely flexible
Investment risk	Long timeframe for recovery	Risk-free emergency access

TFSA Optimization Strategies

• Contribution priority: Maximize TFSA first if you have low current income
• Flexibility advantage: Use TFSA for emergency funds—accessible without tax consequences
• Government benefits: TFSA withdrawals don’t affect OAS, spousal benefit calculations
• Investment strategy: Hold volatile investments in TFSA to shelter capital gains
• Multiple accounts: Can have multiple TFSAs at different institutions

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Important Tax Benefits for Canadian Families

Canada Child Benefit (CCB)

The Canada Child Benefit is one of the largest tax benefits available to Canadian families with children:

CCB Eligibility Requirements

To qualify for the CCB, you must:

1. Be a Canadian resident: Live in Canada and be a resident for tax purposes
2. Care for the eligible child: The child must reside with you
3. File your tax return: Both parents must file, even if they had no income
4. Have a Social Insurance Number: Required for both parent and child
5. Age of child: Eligible child must be under 18 years old

CCB Payment Amounts (2025)

The CCB provides tax-free monthly payments based on adjusted family net income:

Family Situation	Maximum Monthly Benefit	Annual Amount
One child	$666.42	$7,997
Two children	Combined varies by AFNI	Up to $15,994
Three+ children	Reduced per child	Varies by family

Child Disability Benefit: An additional $284.25 monthly ($3,411 annually) per child eligible for the Disability Tax Credit

CCB Phase-Out and Reduction

Benefits are reduced based on adjusted family net income (AFNI) calculated on your tax return:

• One child: Reduced by 3.2% of income above $81,222
• Two children: Reduced by 5.7% of income above $81,222
• Three+ children: Reduced by 8% of income above $81,222
• Maximum income: Benefits fully eliminated at income thresholds (approximately $170,000+ depending on number of children)

Working Income Supplement (WIS)

Families with earned income may qualify for additional WIS amounts:

• Maximum supplement: $500 per family
• Phase-in: 8% of earned income above $3,750
• Maximum reached: Between $10,000 and $20,921 of earned income
• Phase-out: Reduced by 10% of income above $20,921

Alberta-Specific Child Benefits

In addition to federal CCB, Alberta offers:

• Alberta Child Benefit: Additional provincial support (varies by income)
• Alberta Working Family Tax Credit: For lower-income working families
• Daycare subsidy programs: Support for eligible low-income families

CCB Filing Requirement

Even if you have no income, you MUST file a tax return to receive the Canada Child Benefit. Parents who don’t file forfeit this critical benefit.

Other Family Tax Benefits

Spousal Amount and Eligible Dependant Amount

• Purpose: Tax credit for supporting a spouse or eligible dependant
• Amount: Up to $15,705 (federal) or $21,885 (Alberta)
• Spousal requirement: Common-law or legal spouse
• Dependant requirement: Dependent relative under 18 (or disabled at any age) living with you
• Income limit: Spouse/dependent must have net income below threshold

Child Care Expense Deduction

• Eligible expenses: Licensed daycare, babysitter fees, overnight camps
• Deduction limit: $8,000 per child under 16 ($16,000 if child disabled)
• Filer requirement: Generally only lower-income spouse can claim
• Documentation: Receipts with provider’s SIN or business number required

Education and Tuition Credits

• Tuition credit: 15% of tuition fees paid to eligible post-secondary institutions
• Education amount: $465 per month of full-time attendance (2025)
• Transfer to parents: Unused credits can transfer to parents/grandparents
• Carryforward: Unused credits carry forward indefinitely

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How to File Your Personal Income Tax Return

Filing Options Available to Canadian Taxpayers

You have several options for filing your personal income tax return:

Option 1: File Online Using NETFILE

Advantages:

• Fastest processing—refunds typically received in 2-4 weeks
• Can file as early as February 24 (for prior year return)
• Receive confirmation immediately
• Track your return status online

Process:

1. Gather all required tax documents and T-slips
2. Choose NETFILE-certified tax software
3. Enter information according to software prompts
4. Review and validate before submission
5. Submit electronically to CRA

Eligible software options:

• Commercial software: UFile, TurboTax, StudioTax, TaxTron
• Community Volunteer Program: Free tax clinics available for low-income filers

Option 2: Use Approved Tax Software (NETFILE)

Several third-party providers offer CRA-approved tax software:

• Wealthsimple Tax: Free for basic returns
• Community Volunteer Program: Free for eligible low-income taxpayers
• Commercial tax software: Various providers at $20-60 cost
• Accountant software: Professional tax preparers use specialized EFILE systems

Option 3: File by Mail

Advantages:

• Simple, straightforward process
• No technology required

Process:

1. Request T1 General tax package from CRA or download from website
2. Complete all sections and schedules by hand or computer
3. Sign and date the return
4. Mail to your Tax Services Office before deadline
5. Allow 8+ weeks for processing

Disadvantages:

• Slower processing (6-8 weeks typical)
• No immediate confirmation of receipt
• Higher error rates

Option 4: File Over the Phone (TELEFILE)

• Eligibility: Not widely available—check CRA website
• Process: Call CRA and provide information verbally
• Limitation: Only available for simple returns

Option 5: Hire a Professional Tax Preparer

Advantages:

• Expert review of return and deductions
• Professional filing through EFILE system
• Representation with CRA if issues arise
• Tax planning consultation

Process:

1. Gather and organize all documents
2. Meet with tax accountant
3. Accountant prepares and files return
4. Accountant handles any CRA correspondence

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Professional Personal Tax Return Preparation at BOMCAS Canada

Why Hire a Tax Professional for Your Personal Return?

While do-it-yourself tax filing is possible, the complexity of Canada’s tax system means that professional tax preparation often pays for itself through:

1. Maximized deductions and credits: Average taxpayers miss 15-20% of available deductions
2. Error prevention: Professional preparation reduces audit risk by 50%+
3. Time savings: Average tax return takes 5-8 hours for individuals to complete
4. Strategic planning: Accountants identify opportunities for future tax savings
5. Peace of mind: Know your return has been professionally reviewed and filed correctly

Services Offered by Professional Tax Preparers

At BOMCAS Canada, our Edmonton tax accountants offer:

• Personal tax return preparation: T1 individual returns with all schedules
• Self-employment tax returns: Sole proprietor, partnership, and contractor returns
• Multi-income returns: Returns with employment, investment, and business income
• Rental property returns: Complete real estate income and expense reporting
• Spousal and dependent claims: Optimization of family tax credits
• Investment income reporting: T3, T4, T5, T5008, and foreign income reporting
• Tax planning consultation: Year-round tax strategy and planning
• CRA correspondence: Representation on notices, reassessments, and audits
• Amended returns: Corrections and optimization of prior-year returns

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Common Tax Filing Mistakes to Avoid

Mistake #1: Missing the Filing Deadline

Impact: 5% penalty plus 1% monthly interest on unpaid taxes

Solution: Mark April 30 on your calendar; file earlier if self-employed (June 15 deadline)

Mistake #2: Under-Reporting Income

Impact: CRA has extensive cross-checking systems; unreported income results in penalties and interest

Solution: Report all income from all sources, including cash income and informal employment

Mistake #3: Claiming Ineligible Expenses

Impact: CRA audits personal expense claims; penalties for false claims can reach 50% of understated tax

Solution: Only claim expenses that meet CRA guidelines; keep receipts and documentation

Mistake #4: Forgetting to Claim Eligible Deductions and Credits

Impact: Overpaying taxes and missing refund opportunities

Solution: Review your complete tax situation with a professional or detailed checklist

Mistake #5: Reporting the Wrong Province of Residence

Impact: Incorrect tax calculation and credits; CRA will reassess

Solution: Report your province of residence on December 31 of the tax year, based on significant residential ties

Mistake #6: Incomplete Documentation

Impact: Return rejection or audit requests; delays in processing refunds

Solution: Ensure all required T-slips are included; complete all necessary schedules

Mistake #7: Failing to Report Foreign Assets and Income

Impact: Serious penalties ($25-$2,500 per year for T1135 forms)

Solution: Report all foreign property, investments, and income as required

Mistake #8: Not Filing Even Without Income

Impact: Missing government benefits and tax refunds

Solution: File regardless of income to receive Canada Child Benefit, GST/HST credit, or other benefits

Mistake #9: Incorrect Social Insurance Numbers

Impact: Return rejected or reassessment issued

Solution: Verify SIN accuracy for yourself, spouse, and all dependents

Mistake #10: Missing Tax Slip Documentation

Impact: Return rejection or incomplete processing

Solution: Obtain all T-slips and receipts before filing

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Year-End Tax Planning Strategies

RRSP Contribution Strategy

Maximize tax savings:

• Contribute up to your deduction limit before March 2 deadline
• Higher earners benefit most from RRSP deductions
• Carry forward unused room for future years
• Consider spousal RRSPs to split retirement income

Timing advantage:

• Contributions made by March 2, 2026, are deductible on 2025 return
• Early contributions maximize tax-deferred growth

Tax-Loss Selling

For investment portfolios:

• Sell investments with capital losses to offset capital gains
• Losses can carry back 3 years or forward indefinitely
• Only capital losses offset capital gains—not regular income
• Avoid “superficial loss” rules: don’t repurchase same investment within 30 days

Income Splitting Strategies

Reduce family tax burden:

• Spousal RRSP contributions provide income-splitting benefit
• Spousal loan strategy: lend money at prescribed rate for lower-income spouse to invest
• Dividend income splitting: eligible dividends can be split with spouse (age 65+)

Charitable Donation Timing

Maximize donation value:

• Large donations receive higher tax credit rate (29% federal vs. 15% for smaller amounts)
• Donate appreciated securities: eliminate capital gains tax
• Batch donations: donate larger amounts in fewer years to reach 29% bracket
• Carry-forward unused donations: claim up to 5 years forward

Capital Gains Strategy

Planning for capital gains:

• Current inclusion rate: 50% (permanent—proposed increase cancelled)
• Only 50% of capital gains included in taxable income
• Consider realizing gains in lower-income years if planning to retire
• Use principal residence exemption on home sale

Expense Acceleration and Deferrals

Strategic timing:

• Defer business expenses to next year if you expect lower income
• Accelerate deductible expenses into higher-income years
• Pay professional fees and accounting costs by year-end for deduction

Educational Credits and RESP Planning

For families:

• Maximum RESP contribution: $2,500 (to get maximum CESG grant)
• CESG match: 20% government contribution on first $2,500 annually
• Lifetime RESP grant: Up to $7,200 per child
• Plan withdrawals to manage student’s income and benefit eligibility

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Why Hire a Professional Tax Preparer: Expert Advantages {#professional-help}

The Complexity of Canadian Tax Law

Canada’s tax system consists of:

• Federal Income Tax Act (hundreds of pages)
• Provincial tax legislation (Alberta alone has extensive regulations)
• CRA Interpretation Bulletins (hundreds of technical guidance documents)
• Court decisions and tax case law
• Ongoing amendments and legislative changes

No individual can realistically stay updated on all provisions, latest changes, and planning opportunities.

Key Benefits of Professional Tax Preparation

1. Accuracy and Compliance

Professional tax preparers:

• Reduce filing errors by 50-70% compared to DIY filers
• Ensure complete compliance with CRA requirements
• Maintain proper documentation and audit trails
• Stay current with tax law changes

2. Maximum Deductions and Credits

Average taxpayer misses:

• 15-20% of available deductions
• Multiple credits they don’t know exist
• Planning opportunities worth thousands

Tax professionals:

• Know comprehensive list of available deductions
• Optimize combinations of credits for maximum benefit
• Identify specialized deductions based on your situation
• Implement tax-efficient strategies

3. Time Savings

Professional tax preparation saves:

• 5-8 hours gathering documents
• 10-15 hours completing return
• 2-4 hours organizing and reviewing
• Total: 17-27 hours per return

Professionals complete complex returns in 2-4 hours due to:

• Systematic organization processes
• Tax software automation
• Experience with similar situations
• Efficient documentation review

4. Tax Planning and Strategic Advice

Beyond filing, professionals provide:

• Year-round tax planning recommendations
• Strategic planning for significant life changes
• RRSP and TFSA optimization
• Income splitting and family tax planning
• Business structure recommendations
• Real estate and investment tax strategies

5. Audit Representation

If CRA contacts you:

• Professional can represent you at CRA
• Accountant can respond to information requests
• Can appeal reassessments and disputes
• Protects your interests in CRA dealings

6. Error Correction

Professional accountants:

• Identify errors in prior-year returns
• File amended returns to capture missed deductions
• Work with CRA on reassessments
• Recover unclaimed refunds and benefits

7. Peace of Mind

Benefits of professional preparation:

• Know return is accurate and complete
• Confidence in compliance with CRA requirements
• No worry about missing deductions
• Professional review catches problems before filing

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BOMCAS Canada: Your Edmonton Personal Tax Return Experts

About BOMCAS Canada

BOMCAS Canada is a leading accounting and tax service firm based in Edmonton, Alberta, serving individuals and businesses throughout:

• Edmonton: All neighborhoods (North, South, East, West Edmonton)
• Surrounding Communities: Sherwood Park, St. Albert, Leduc, Beaumont
• Alberta: All regions and communities
• Across Canada: Remote and virtual services available

Established: Over 15 years of continuous service to Edmonton and Alberta community

Reputation: Ranked among most reputable accounting firms by independent rating organizations

Our Personal Tax Return Services

Complete Tax Return Preparation

We handle all types of personal tax returns:

• Employment income returns: W-2 equivalent (T4) income from employers
• Self-employment returns: Sole proprietors, contractors, consultants
• Investment income returns: Dividends, interest, capital gains, foreign income
• Rental property returns: Real estate income and expense reporting
• Multi-income returns: Combination of employment, business, and investment income
• Pension and retirement returns: Seniors with CPP, OAS, RRIF, and pension income
• Non-resident returns: Canadian-source income for non-resident taxpayers

Comprehensive Tax Planning

Our tax planning services include:

• Year-end tax planning consultation: Optimize your tax position before year-end
• RRSP and TFSA strategy: Maximize tax-advantaged account utilization
• Income splitting planning: Reduce family tax burden through legal strategies
• Investment and capital gains planning: Efficient management of investment income
• Business structure planning: Optimize personal and business taxation
• Retirement income planning: Strategies for tax-efficient retirement

Responsive Customer Service

BOMCAS Canada is committed to exceptional service:

• Flexible appointment scheduling: Evenings and weekends available
• Multiple service options:
  • In-person meetings at our office
  • Virtual consultations via phone and video
  • Mobile service: We pick up and deliver your documents
• Multilingual support: Services available in multiple languages
• Local expertise: Deep knowledge of Edmonton, Alberta, and Canadian tax issues
• Responsive communication: Regular updates on your return status

Unique BOMCAS Mobile Tax Service

BOMCAS Edmonton’s exclusive mobile tax service:

1. We pick up your documents: Our team collects all required files at your location
2. We complete your return: Our accountants prepare and review your return
3. We deliver your documents: Files returned to you at your convenience

This innovative service means:

• You don’t need to visit our office
• No coordination challenges during busy tax season
• Professional service comes to you
• Complete confidentiality maintained

Why Choose BOMCAS Canada for Your Personal Tax Return

Local Edmonton Expertise

• 15+ years serving Edmonton community: Deep understanding of local tax issues
• Alberta tax specialists: Expert knowledge of Alberta’s unique tax system and benefits
• Canadian coverage: Services available across all provinces

Qualified Professional Team

• Experienced accountants: CPA-designated professionals with specialized tax training
• Continuing education: Stay current with latest tax law changes
• Professional certifications: Recognized designations in accounting and taxation

Proven Results

• High-quality standards: Rigorous review process for every return
• Zero error tolerance: Quality assurance checks before filing
• Client satisfaction: Ranked highly by independent review organizations
• Refund optimization: Average refund 15-20% higher than DIY filers

Fair and Transparent Pricing

• Competitive rates: Fair pricing for quality service
• Fixed fees: Transparent billing without surprises
• Flexible payment options: Various payment arrangements available
• Good value: Professional service investment pays for itself through refunds and tax savings

How to Get Started with BOMCAS Canada

Step 1: Contact Us

Phone: (780) 667-5250
Email: info@bomcas.ca
Website: https://bomcas.ca

Step 2: Initial Consultation

• Discuss your tax situation
• Determine which services you need
• Explain our process and timeline
• Answer your questions

Step 3: Gather Your Documents

• Collect all T-slips (T4, T4A, T5, etc.)
• Compile receipts and documentation
• Organize deduction and credit supporting documents
• Review prior-year return for carryforward items

Step 4: Prepare Your Return

• We prepare your complete tax return
• Review every line for accuracy
• Validate all deductions and credits
• Ensure complete CRA compliance

Step 5: Review and File

• Meet with you to review return
• Explain key figures and assumptions
• Address any questions
• File electronically with CRA (NETFILE)

Step 6: Follow-Up

• Track your return with CRA
• Ensure refund is processed
• Answer any follow-up questions
• Assist with CRA correspondence if needed

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Frequently Asked Questions About Personal Tax Return Preparation

General Tax Filing Questions

Q: Do I really need to file a tax return if I have no income?

A: Yes! Even without income, you should file if you might be eligible for benefits like the Canada Child Benefit, GST/HST Credit, or other government payments. Not filing means forfeiting these benefits.

Q: What happens if I miss the April 30 filing deadline?

A: You’ll face late-filing penalties (5% of unpaid tax plus 1% per month, up to 12 months) and interest charges on any amount owing. File as soon as possible to minimize penalties.

Q: How long should I keep my tax records?

A: Keep all tax records for at least 6 years from the date you file your return. CRA typically has 6 years to reassess, though certain circumstances allow longer periods.

Q: What’s the difference between federal and provincial tax?

A: You pay tax at both levels, but file a single return. The CRA calculates both federal and provincial tax using combined brackets and credits.

RRSP and TFSA Questions

Q: Should I contribute to my RRSP or TFSA first?

A: Generally, high-income earners (30%+ marginal rate) should prioritize RRSPs. Lower-income earners (under 25% rate) should prioritize TFSAs for flexibility and benefit protection.

Q: Can I contribute to both RRSP and TFSA in the same year?

A: Absolutely. Contribute to both within your annual limits. Many Canadians contribute to RRSP first (tax deduction), then use the tax refund to contribute to TFSA.

Q: What happens if I over-contribute to my RRSP?

A: CRA charges 1% per month penalty on excess amounts until they’re withdrawn. Maintain a buffer to avoid accidental over-contributions.

Q: Can I withdraw from my TFSA without penalty?

A: Yes. TFSA withdrawals are tax-free and penalty-free, with contribution room restored the following calendar year.

Deduction and Credit Questions

Q: What expenses can I claim as a self-employed person?

A: Self-employed individuals can claim all ordinary business expenses including supplies, equipment, home office, vehicle, travel, and professional fees. Keep all receipts for at least 6 years.

Q: How much of my home office can I deduct?

A: Calculate the percentage of your home used for business (square footage ratio) and deduct that percentage of:

• Rent or mortgage interest
• Utilities
• Property tax
• Home insurance
• Maintenance and repairs

Q: Can I claim my children’s activities and sports?

A: The children’s fitness and arts amounts are no longer available. However, you can claim eligible tuition and fees if paid to an instructor or school.

Q: What medical expenses can I claim?

A: Eligible medical expenses include prescription medications, dental work, glasses/contacts, hearing aids, fertility treatments, and certain disabilities-related expenses. Expenses must exceed 3% of your income or $2,835 (whichever is less).

Filing Method Questions

Q: What’s the difference between NETFILE and EFILE?

A: NETFILE is the CRA system for individual taxpayers using tax software. EFILE is the professional tax preparer system for accountants and tax professionals. Both are electronic and equally valid.

Q: How long do refunds take after filing?

A: Electronically filed returns typically generate refunds in 2-4 weeks. Paper returns take 6-8 weeks. Check “My Account” online to track your return status.

Q: Can I amend my return after filing?

A: Yes, use Form T1-ADJ (Adjustment Request) to amend returns up to 10 years back to claim missed deductions or correct errors. File the amended form as soon as you identify the issue.

BOMCAS Canada Service Questions

Q: How much does BOMCAS Canada charge for personal tax return preparation?

A: Pricing varies based on return complexity, income sources, and deduction quantity. Contact us at (780) 667-5250 for specific quote.

Q: Can BOMCAS Canada help with CRA audits?

A: Yes. We provide professional representation with CRA, respond to information requests, and help navigate the audit process.

Q: Does BOMCAS Canada offer tax planning throughout the year?

A: Absolutely. We provide year-round tax planning consultation to identify opportunities and optimize your tax position continuously.

Q: What if I had no income this year but was self-employed?

A: Report your self-employment income and deduct all business expenses. Even break-even or loss years must be reported, and business losses can be carried back or forward.

Q: Can BOMCAS Canada handle returns for non-residents?

A: Yes. We specialize in non-resident tax returns for Canadians living abroad with Canadian-source income.

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Conclusion: Take Action on Your Personal Tax Return

The Time to Act Is Now

Personal tax return preparation and filing is one of the most important financial tasks you undertake annually. The deadline of April 30 approaches quickly, and the consequences of missing deadlines or filing incorrectly are significant:

• Financial impact: Late fees and penalties can cost hundreds or thousands of dollars
• Lost benefits: Missed government benefits and credits compound over years
• Stress and worry: Uncertainty about whether you’ve filed correctly creates unnecessary stress
• Audit risk: Errors increase the probability of CRA reassessment

Your Action Plan

If you’re filing your 2024 personal tax return:

1. Gather your documents immediately: T-slips, receipts, and statements needed for preparation
2. Review deductions and credits: Ensure you understand what you can claim
3. Choose your filing method: DIY software, file by mail, or hire a professional
4. File by April 30: Earlier is better—electronic filing takes just 2-3 weeks for refunds
5. Keep records for 6 years: Maintain documentation for CRA verification

Why BOMCAS Canada Stands Out

BOMCAS Canada and BOMCAS Edmonton are not just another tax preparation service. We are:

• Local Edmonton experts: 15+ years serving the Edmonton and Alberta community
• Tax specialists: Deeply knowledgeable about federal and provincial tax requirements
• Client-focused: Your satisfaction and tax optimization are our priorities
• Comprehensive service: From preparation through filing to CRA representation
• Innovative service: Unique mobile tax service brings professional preparation to you

Contact BOMCAS Canada Today

Don’t face tax season alone. Whether you’re a first-time filer, self-employed, or have complex multi-income tax situation, BOMCAS Canada is here to help.

Get professional personal tax return preparation from Edmonton’s trusted tax accountants:

Phone: (780) 667-5250
Email: info@bomcas.ca
Website: https://bomcas.ca
Service Area: Edmonton, Sherwood Park, St. Albert, Leduc, surrounding Alberta communities, and across Canada

BOMCAS Canada: Where personal service meets professional expertise.

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Final Thoughts on Personal Tax Return Preparation

Filing your personal income tax return doesn’t have to be stressful or complicated. With proper planning, organization, and professional guidance, you can ensure:

✓ Complete CRA compliance with zero penalties
✓ Maximum deductions and credits claimed
✓ Optimal tax refund or minimum tax owing
✓ Peace of mind knowing your return is accurate
✓ Strategic tax planning for future years

The investment in professional tax preparation typically pays for itself many times over through:

• Identified deductions and credits you might have missed
• Optimized tax strategies reducing future tax liability
• Audit representation protecting your interests
• Time saved that you can dedicate to your business or family

Contact BOMCAS Canada today to schedule your personal tax return consultation and experience the difference professional tax preparation makes.