27 Feb
Blog

2025 Personal Tax Checklist & Required Documents

2025 Personal Tax Checklist & Required Documents

To help make your 2025 tax filing process as smooth as possible, we’ve put together a list of common tax deductions and credits.

Take a look at the categories below to see what applies to your situation. Once you’ve gathered your information, follow the steps at the bottom of this page to submit your details and book your virtual appointment with our team.

Important Note: Please do not schedule your appointment until you have gathered all of your required documents.

Families & Children

This section covers credits and deductions related to raising a family, childcare, and support.

Tax Item What it is What We Need From You
Child Care Expenses Expenses paid for child care so you could work, run a business, or study. Details of expenses, including provider’s SIN/Business Number & dates of care.
Eligible Dependant Credit for single individuals supporting a qualifying dependant living with them. Dependant’s net income, SIN, and confirmation they live with you.
Adoption Expense Credit for eligible expenses when adopting a child under 18. Summary of expenses and the adoption order.
Support Payments Made Deductions for eligible spousal or child support payments. Copy of court order/agreement & total amount paid.

Homeowners & Movers

Credits and deductions for buying a home, making renovations, or moving.

Tax Item What it is What We Need From You
First Home Savings Account (FHSA) Deductible contributions to save for a first home. Copy of T4FHSA slips, OR we can download them from your CRA portal.
First-Time Home Buyer Credit for purchasing a qualifying first home. Closing documents & confirmation of first-time buyer status.
Home Accessibility Credit for qualifying renovations (up to $20k) for seniors (65+) or those with a disability. Details of the work performed and total costs (receipts are preferred but not required upfront).
Multigenerational Home Renovation Refundable credit for creating a secondary unit for a senior or disabled adult. Details of the project and total expenses (receipts are preferred but not required upfront).
Moving Expenses Deduction for moving 40km+ closer to a new work location or full-time school. Old/new addresses, distance calculation, and a summary of moving expenses.

Retirement & Seniors

Tax advantages specifically designed for retirement savings and seniors.

Tax Item What it is What We Need From You
Registered Retirement Savings Plan (RRSP) Deductible contributions made to your RRSP. Copy of RRSP slips, OR we can download them from your CRA portal.
Registered Pension Plan (RPP) Deduction for contributions to an employer-sponsored pension. Copy of your T4 slip, OR we can download it from your CRA portal.
Pension Income Splitting Joint election to split eligible pension income with a spouse/partner to lower taxes. None. We will run the calculations and inform you if you benefit from pension splitting!

Health & Disability

Credits for medical expenses and support for individuals with physical or mental impairments.

Tax Item What it is What We Need From You
Eligible Medical Expenses Credit for medical expenses exceeding a set threshold of your net income. A detailed summary of your medical expenses (receipts are preferred but not required upfront).
Disability Tax Credit Credit for individuals with severe and prolonged impairments. Confirmation of an approved Form T2201 on file with CRA.
Disability Supports Deductible expenses for physical/mental impairment supports needed to work, study, or do research. A detailed summary of eligible expenses & any required medical docs.
Caregiver Amount Credit for supporting a dependant with a physical or mental infirmity. Dependant’s net income & medical statement or approved T2201.

Students & Education

Deductions and credits for post-secondary education, training, and student loans.

Tax Item What it is What We Need From You
Tuition Fees Credit for eligible post-secondary tuition fees. Copy of your T2202 slip, OR we can download it from your CRA portal.
Canada Training Credit Refundable tax credit to help workers pay for training and tuition fees. Copy of your T2202 slip (or we can pull from CRA portal) AND your latest Notice of Assessment.
Student Loan Interest Credit for interest paid on eligible government student loans. Annual student loan interest statement.

Work, Investment & Community

Items related to your job, investments, and giving back.

Tax Item What it is What We Need From You
Charitable Donations Tax credit for donating to registered charities. The total amount donated. (Please keep your official receipts in case the CRA requests them).
Employment Expenses Deductions for required job expenses (e.g., home office, supplies, travel). Signed Form T2200 and our Employment Expenses excel sheet completed.
Tradesperson’s Tools Deduction for the cost of eligible tools bought to earn employment income as a tradesperson. Summary of tool costs AND a signed Form T2200 from your employer.
Union & Professional Dues Deduction for annual union or professional association dues. Copy of T4 slips (OR we can download from CRA portal) or official professional receipts.
Volunteer Firefighters & Search/Rescue $6,000 credit for 200+ hours of eligible volunteer services. Written certification verifying your hours.

Provincial Specific Tax Credits

Depending on the province you reside in on December 31st, you may be eligible for these specific regional credits.

Province Tax Item What it is What We Need From You
Ontario CARE Tax Credit Childcare Access and Relief from Expenses for low-to-moderate incomes. Details of your childcare expenses.
Ontario Seniors Care at Home Refundable credit to help seniors pay for eligible medical expenses at home. A detailed summary of your medical expenses (receipts preferred but not required).
Ontario Ontario Trillium Benefit Combined benefit that helps pay for energy costs, property taxes, and sales tax. Total property tax paid OR total rent paid (and landlord details).
Alberta Political Contributions Credit for contributions to a registered Alberta political party or candidate. Official receipts issued by the political organization.
British Columbia BC Renter’s Tax Credit A tax credit for eligible low-to-moderate income renters in BC. Total rent paid for the year, and your landlord’s name/address.
British Columbia Training Tax Credit Provincial credit for apprentices completing eligible training programs. Your ITA transcript or completion documentation.
New Brunswick Low-Income Seniors’ Benefit Benefit for low-income seniors to help with living expenses. We will calculate this based on your net income and age.
New Brunswick Provincial Volunteer Credits Additional provincial credits for Volunteer Firefighters and Search/Rescue workers. Written certification verifying your 200+ hours.

 

04 Dec
Blog

Personal Service Business – Need to Know!

Are You Operating a “Personal Services Business”? Here is What You Need to Know

Many Canadians incorporate their businesses to take advantage of tax deferrals and the Small Business Deduction. However, if you incorporated your business primarily to provide services to just one other company, the Canada Revenue Agency (CRA) might consider you a Personal Services Business (PSB).

This distinction is crucial because being classified as a PSB significantly changes your tax obligations and eliminates many of the tax benefits usually associated with having a corporation.

What is a Personal Services Business?

Generally, a PSB exists when the individual performing the work would be considered an employee of the hiring company if the corporation did not exist. This is often referred to as being an “incorporated employee.”

The Financial Risks: Why Classification Matters

If your corporation is deemed a PSB, the tax implications are severe. Unlike a regular active business, a PSB faces higher tax rates and fewer privileges.

A PSB is subject to:

  • The full federal and provincial corporate tax rates.
  • An additional 5% tax on PSB income.

A PSB is NOT eligible to:

  • Claim the Small Business Deduction (which significantly lowers tax rates for most small businesses).
  • Claim the General Tax Rate Deduction.

Expense Restrictions

One of the biggest advantages of a corporation is the ability to deduct business expenses. However, PSBs are restricted here as well. A PSB cannot deduct all expenses. Deductions are generally limited to the salary and wages paid to the incorporated employee and very few other specific costs.

Your Obligations as a PSB

Even if you are classified as a PSB, you must still maintain compliance with the CRA. A PSB is responsible for:

  • Filing a Corporation Income Tax Return (T2).
  • Issuing T4 slip(s) to its employee(s).
  • Filing GST/HST returns.

Quick Self-Assessment: Are you a PSB?

If you are unsure if these rules apply to you, review this quick checklist based on CRA guidelines. If you answer “YES” to the following, you are at high risk:

  • ☑ Do you work for only one client?
    If you have incorporated to provide services to primarily one other company, you are a target for PSB classification.
  • ☑ Are you an “Incorporated Employee”?
    Would you be considered an employee of the hiring company if your corporation did not exist? Generally, this means the client controls how, where, and when you do your work.
  • ☑ Do you perform the work personally?
    Is the incorporated individual the one physically performing the services for the client?

Result: If you checked these boxes, you may be subject to the additional 5% tax and expense restrictions. Please contact us immediately.

The CRA is Watching: The PSB Pilot

In 2022, the CRA launched a pilot project to analyze PSB business practices and education. Phase 2 of this pilot, which ran from October 2023 to Fall 2024, focused on identifying potential PSBs and educating them on their filing obligations. The results of this pilot will determine future CRA engagement activities.

Next Steps

If you are unsure if your business relationship puts you in the PSB category, it is vital to review your situation immediately. The rules regarding “employee vs. independent contractor” are complex.

Contact our office today to review your corporate structure and ensure you are compliant with CRA regulations.

Source: Canada.ca/personal-services-business

25 Nov
Blog

Is Your Receipt Valid? A CRA Compliance Checklist

Expense Receipt Requirements

To ensure we can claim Input Tax Credits (ITC), all expense claims must meet the following Canada Revenue Agency documentation standards.

Minor Expenses – Under $30

Examples: Parking, Coffee runs, Taxi.

  • Supplier Name
    (e.g., “Starbucks” or “Green P Parking”)
  • Date of purchase
  • Total Amount paid
Tip: Even if the tax isn’t listed separately, we can calculate it as long as the total is clear.

Standard Expenses -$30 to $149.99

Examples: Office supplies, Client meals, Fuel.

  • Supplier Name
  • Date
  • Total Amount
  • GST/HST Number
    (Look for “BN” or “GST#” on the slip)
  • Tax Amount
    (Must show tax amount separately OR state “Tax Included” with the rate)

Major Expenses – $150 and Over

Examples: Equipment, Software, Consulting, Travel.

  • Supplier Name
  • Date
  • Total Amount
  • GST/HST Number
  • Tax Amount
  • Recipient Name
    (Our Company Name must be on the invoice. Do not use your personal name.)
  • Description of what was bought
  • Terms of Payment

What is a valid receipt?

The CRA accepts the following as valid documentation:

  • An Invoice
  • A Receipt
  • A Credit Card Receipt (if it has the required info)
  • A Written Contract
  • Electronic Records (Emails/PDFs)

Common Mistakes to Avoid

1. The “Debit Machine” Slip
A debit/credit transaction slip that only shows the total is not enough for expenses over $30. You need the itemized receipt that shows the GST number.

2. Personal Names on Invoices
For expenses over $150 (like buying a laptop), the invoice must be made out to the company, not to you personally.

Based on CRA Memorandum 8-4 | Please attach all original receipts to your expense report.

09 Oct
Blog

HST and Psychotherapists: Understanding Your Sales Tax

As a psychotherapist in Canada, you’re likely aware of the good news: your services are now exempt from the Goods and Services Tax/Harmonized Sales Tax (GST/HST) (as of June 20, 2024). This simplifies your invoicing, but it’s important to understand the conditions for this exemption and what it means for the HST you pay on your business expenses.

 

Are You Eligible for the HST Exemption?

According to the Canada Revenue Agency (CRA), you are eligible for the GST/HST exemption for psychotherapy and counselling therapy services if you meet the following conditions:

  • You are provincially regulated: You must be licensed or regulated by a provincial body responsible for overseeing psychotherapy or counselling therapy services. Currently, these services are regulated in Ontario, New Brunswick, Nova Scotia, and Prince Edward Island.
  • You operate in an unregulated province with equivalent qualifications: If you practice in a province or territory that does not have a regulatory body for psychotherapy or counselling therapy, you can still be exempt. You must have the equivalent educational qualifications and work experience that would be required to be licensed in one of the regulated provinces.
  • Your services are within the scope of practice: The services you provide must fall within the defined scope of practice for the profession in a regulated province.

 

The Impact of HST Exemption on Your Supplies

Since your services are HST-exempt, you cannot register for a GST/HST number, and therefore you cannot claim Input Tax Credits (ITCs). ITCs are what most businesses use to recover the GST/HST they pay on their business-related goods and services.

This is a crucial point. While businesses that charge HST can get a credit for the HST they pay, as a psychotherapist with exempt services, you are not eligible for these credits.

So, What Happens to the HST You Pay?

The HST you pay on your business-related purchases and expenses is not lost. Instead of being an ITC, the HST you pay is considered a part of the total cost of the expense. You can then deduct the full amount of the expense, including the HST, from your business income.

Here’s a simple example:

Let’s say you purchase new therapy workbooks for your practice that cost $100. In Ontario, with a 13% HST, the total bill would be $113.

  • For a business that charges HST: They would claim the $13 as an Input Tax Credit and deduct the $100 as a business expense.
  • For you, as a psychotherapist with exempt services: You cannot claim the $13 as an ITC. Instead, you will record the entire $113 as the cost of the workbooks and deduct this full amount as a business expense.

By including the HST in your expense claims, you are reducing your net income, and therefore reducing your income tax payable.

 

The Bottom Line

While you cannot directly recover the HST you pay on your business supplies and overhead, it is not a lost cost. The HST you pay on your legitimate business expenses simply becomes part of the deductible expense. This, in turn, helps to reduce your overall tax burden at the end of the year.

Disclaimer: This blog post is for informational purposes only and does not constitute professional tax advice. You should consult with a qualified tax professional to discuss your specific situation.

27 Feb
Blog

Authorize a Representative for Personal Taxes

To add a representative on the Canada Revenue Agency (CRA) My Account, you can follow these easy steps:

  1. Log in to My Account:
    • Go to the CRA My Account login page.
    • Enter your credentials to log in. If you don’t have an account, you will need to register first.
  2. Access the “Authorize or manage representatives” section:
    • Once logged in, navigate to the “Profile” section
    • Click on “Authorize or manage representatives.”
  3. Add a representative:
    • Click on the “Authorize new representative” button.
    • Authorize us by adding BN (Business number) 863251567
    • Provide Level 2 access
    • Provide online access
  4. Review and confirm:
    • Review the information to ensure it’s correct.
    • Submit the authorization request.

 

If you do not have a CRA My Account, please reach out to jessica@vfstax.ca to help you do authorization via e-signature.

24 Feb
Blog

2024 Canadian Tax Credits and Deductions Checklist

See below a table of the most common claims, the criteria to claim it and what you require to provide to us for it:

 

Deduction Eligibility Criteria Required Documentation
RRSP RRSP Contribution Slips from March 2024 – Feb 2025
First Home Savings Account (FHSA) contributions You must be a first-time home buyer who is a resident of Canada and at least 18 years old . FHSA Contribution Slips
Home office expenses You must be working from primarily from home and your workplace issues you a T2200. T2200

Complete our work from home template
Moving expenses You moved to 40 km CLOSER to a new work or run a business at a new location, or to be a full-time student in a post-secondary program. Receipts for eligible expenses (travel costs, transportation, temporary accommodation, meals, etc.) .
Child care expenses You paid for child care expenses to allow you (and your spouse or common-law partner) to work or attend school. Receipts for child care expenses, information about the child care provider (name, address, SIN) .
Investment expenses You can deduct interest paid on money borrowed to earn investment income (e.g., dividends, interest). This does not apply if your investment only generates capital gains or for investments in RRSP / TFSA Total interest paid in 2024
Employment expenses If you have to pay for work related expenses out of pocket and are required to travel for work outside of the main office.

Your workplace MUST issue you a T2200 to claim any expenses

 Complete employment expenses template
Home Office Expenses You work majority from home and employer issues a T2200 Complete Work from home expense template
Union, professional, or like dues You paid annual dues to a union, professional association, or similar organization related to your employment. Receipt or name of body and amount paid

Tax Credits

 

Credit Eligibility Criteria Required Documentation
Spouse or common-law partner amount
OR
Eligible Dependent		 Your spouse had income below $15,705

Or you were single and had a dependent

 Spouse’s net income for 2024
Disability tax credit (DTC) You have a severe and prolonged impairment in physical or mental functions. Must have previous approval or have a completed T2201 Disability Tax Credit Certificate, certified by a medical practitioner.
Home Buyers’ Amount (HBA) You purchased a qualifying home in Canada in 2024. Agreement of purchase and sale, proof of ownership .
Tuition tax credit You paid tuition fees for post-secondary education. T2202A Tuition and Enrolment Certificate .
Medical expenses You incurred eligible medical expenses for yourself, your spouse or common-law partner, and your dependants. Or you paid medical insurance premiums. Receipts for medical expenses.

Will only make a difference if total is more than 3% of your net income
Charitable donations You made donations to registered charities in Canada. Official donation receipts from the charities .
Digital News Subscription Tax Credit You paid for a subscription to a qualifying Canadian news organization. Receipts for digital news subscription costs .
Canada caregiver amount You supported a spouse, common-law partner, or dependant with a physical or mental impairment Details of dependant and their net income for 2024
Student loan interest You paid interest on a student loan Student loan receipt / total interest paid in 2024
Home Accessibility Tax Credit (HATC) You are a senior or a person with a disability (or supporting a qualifying individual) and incurred expenses to make your home more accessible Receipts for renovation expenses.
07 Jan
Blog

Canada Summer Jobs 2022 – Get up to 50% of wages reimbursed

Canada Summer jobs wage subsidy program is designed to help business create summer jobs for youth between the ages of 15 and 30, focusing on those who face barriers to employment. The subsidy provides wage reimbursement  of up to 50% of the provincial minimum wage

 

Eligibility

The criteria set out by the government can be found here. Some of them are

  • You must be registered with CRA and have a payroll deductions program prior to hiring
  • You must have 50 or fewer full-time employees across Canada
  • You must provide the employee with full-time work experience in Canada for a minimum of 6 weeks between April 25, 2022 and Sept 3 2022.
  • You must provide an inclusive, non-discriminatory work environment that respects the rights of all Canadians
  • Job must provide meaningful work experience for the youth, supporting skills acquisition and development

 

Other Details

  • Only available for new hires. They cannot be hired before approval is received from Service Canada, and they cannot start before April 25, 2022
  • Employers must complete a questionnaire after. Employee must be provided with the questionnaire and is encouraged to complete it
  • All Canada Summer Jobs funded positions will be posted on the Job Bank
  • The wage subsidy reimbursement is up to 50% of the provincial minimum wage
  • Employers must ensure compliance with all health and safety measures
  • Family members wages will only be reimbursed if the program is satisfied, and agrees in writing before commencement of the job, that the participant is the best candidate for the job and the hiring was not a result of favouritism

 

Things to note when applying

When making the summer jobs application, it is important to demonstrate a link between the job tasks and responsibilities and the national and local priorities. National and local priorities are

  • Indigenous Youth
  • Racialized Youth
  • Black Youth
  • Youth who left high school early and who are not in employment, education, or training
  • Small businesses that themselves are underrepresented in the labour market
  • Local priorities depend on the constituency

 

How and when to apply

You can apply online fillable application, in person, by mail or using grants and contributions online services. Deadline for applying is until January 25, 2022 3 pm EST.