Tax season is officially here ,and Canadians can start filing their 2025 income tax and benefit returns. While the process may feel routine, this year brings a mix of new tools, important deadlines, expanded benefits — and emerging risks, particularly for those relying on artificial intelligence for tax advice.
Here’s what taxpayers and small businesses should know as the April 30th deadline approaches.
When to file & what to gather first
The tax-filing season opened this week and runs a little over nine weeks, ending April 30, 2026. Self-employed individuals have until June 15 to file, but any balance owing must still be paid by April 30 to avoid interest.
Most employers issue **T4 slips by the end of February**, while banks and investment firms typically release tax slips and annual summaries around the same time.
“More complex investment structures — such as trusts — can take longer,” said Ryan Minor, director of tax at CPA Canada. “Sometimes those slips don’t arrive until March, so it’s important not to rush if you’re still waiting on documents.”
Minor recommends checking your Canada Revenue Agency My Account early in the season to ensure nothing is missing.
“If CRA has a record of something that you don’t have, then you should probably go and track down that slip,” he said.
Credits, deductions & missed opportunities
Tax experts say many Canadians leave money on the table by overlooking credits and deductions.
“There are more than 400 credits and deductions Canadians may be eligible for,” said Yannick Lemay, tax specialist at H&R Block. “And for most of them, you do need supporting documents.”
Commonly missed credits include:
- The disability tax credit
- First-time home buyers’ credits
- Home accessibility expenses
Minor noted that missed credits can sometimes be claimed retroactively.
“I’ve seen cases where people received reassessments going back several years — and refunds,” he said.
Taxpayers can also still reduce their tax bill through RRSP contributions. The deadline to contribute for the 2025 tax year is March 2, 2026, provided you have available contribution room.
Time sensitive benefits
Filing tax returns aren’t just about compliance; they are critical to how Canadians access benefits and support payments.
This includes child benefits, disability supports, and the newly renamed Canada Groceries and Essentials Benefit (formerly the GST/HST credit).
Eligible families of four could receive up to $1,890 this year, while eligible single Canadians could receive up to $950.
Last year, Canadians filed more than 33 million tax returns, with 93% submitted online. The CRA delivered more than $45 billion in refunds, with the average refund around $2,000.
Filing annually and on time ensures these payments continue without interruption.
What’s new at the CRA
The CRA has rolled out several service enhancements for the 2026 tax season, including:
- Faster account setup, with online identity verification using government-issued photo ID
- Improved password recovery and refund tracking tools
- Redesigned web pages to support self-service
- Expanded access to SimpleFile Digital, allowing eligible Canadians to file quickly and for free
The agency is also promoting its AI-powered chatbot to help answer general tax questions, alongside traditional phone and in-person support.
For Canadians with lower or fixed incomes, the federal government plans to pilot automatic tax filing later this year.
Looking ahead to 2027, about one million eligible individuals may be invited to review and approve a pre-filled return directly in their CRA account.
AI and tax advice don’t always mix
While the CRA is using AI to improve service, accounting professionals are warning against relying on general-purpose AI tools for personalized tax or financial advice.
A survey commissioned by Dext found that half of accountants and bookkeepers were aware of businesses that had suffered direct financial losses after acting on incorrect AI-generated advice. Reported outcomes included overpayments, missed deductions, penalties, and compliance issues.
“The damage is no longer hypothetical,” said Paul Lodder, VP of accounting product strategy at Dext. “Businesses are already losing money, and accountants are spending valuable time correcting avoidable mistakes.”
- 76% of professionals saw increased client use of public AI tools for tax and bookkeeping questions
- 44% encountered incorrect expense interpretations
- 43% saw incorrect tax claims or charges
- Many spent several hours per month fixing AI-related errors
Nearly half of respondents warned that false confidence in AI outputs could lead to more severe financial consequences in 2026, including increased CRA scrutiny.
File confidently, not hastily
Experts agree that filing early can be beneficial, especially if your situation is straightforward and you’re expecting a refund. But accuracy matters more than speed.
“Filing early only makes sense if you’re confident you have everything you need,” Minor said.
As tax season unfolds, Canadians are encouraged to use official tools, double-check their documents, and seek professional advice when their situation is complex.
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