Key Dates
| January – mid | CRA pdf tax forms for printing available for download at http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html |
| February - 11 | CRA online filing service NETFILE starts accepting 2012 tax returns – certified software list at http://www.netfile.gc.ca/sftwr-eng.html |
| March – 1 | RRSP contribution – last day for making contribution applicable to 2012 tax year |
| April – 30 | CRA – last day to file 2012 return and pay amounts owing to avoid penalties |
| June – 15 | CRA – last day to file 2012 return for self-employed though amounts owing deadline is still April 30 |
| November – 30 | CRA – last day for online filing service NetFile to accept 2012 tax returns |
| continual | CRA issues tax refunds, often within days, if return is filed electronically |
CRA dates are rigid; don't be late even by a day or you will miss out or suffer penalties. On the other hand the tax documents below relating to the 2012 tax year flood in progressively from mid-January to the end of March. There can be weeks or more of variation amongst companies that issue the slips and receipts. If in doubt check the website or phone the company involved but don't leave it to the last few days before April 30. It is likely to be hard to get a response in time to file.
Checklist and guide for interest, dividends and capital gains
| If your investing involves … | look for these documents … | from these organisations .... |
| Borrowed money to invest | Investment interest expense | on statements from broker for margin, or bank for loan |
| Canada Savings Bond interest | T5 slip (min $50 interest) | from broker if held in a broker account or from Bank of Canada if bought directly from BOC; |
| GIC interest | T5 slip (min $50 interest) | from broker if held in a broker account or from bank or trust company if bought directly |
| T-Bill and Stripped Bond interest | Annual summary of security transactions | Interest = redemption/sale amount – purchase cost; for details see http://howtoinvestonline.blogspot.co.uk/2011/03/how-to-calculate-interest-and-capital.html T5 does NOT show it, even when over $50 e.g. http://www.rbcds.com/TaxReporting/tax-information-checklist.html |
| Mutual fund distributions | T3/T5 slips | mailed directly by Mutual fund companies, NOT brokers, even when fund is held in a brokerage account |
| Mutual fund capital gains (sales) | Annual summary of security transactions | from broker if held in a broker account or from mutual fund company if held directly with the mutual fund company |
| Bond interest | T5 slip (min $50 income) | broker |
| Bond capital gain or loss (sale or maturity) | Annual summary of security transactions | broker provides statement at purchase year and at maturity or sale; for how to calculate see http://howtoinvestonline.blogspot.co.uk/2011/03/how-to-calculate-interest-and-capital.html |
| Stock dividends | T5 slip (min $50 income) | broker |
| Stock capital gain or loss (sale) | Annual summary of security transactions | broker provides statement at purchase year and at maturity or sale |
| ETF and REIT distributions | T3/T5 slips | broker |
| ETF and REIT (Income Trust) capital gain or loss (sale) | Annual summary of security transactions + own records | broker for trading transaction summary Investor must track own adjusted cost base – see http://howtoinvestonline.blogspot.com/2009/01/etfs-and-mutual-funds-calculating.html ETF providers publish tax breakdown of distributions on their website. ETF providers in Canada list and links at http://www.tmxmoney.com/en/sector_profiles/exchange_traded_funds/funds/funds.html |
| Split Corporation income | T5 | broker |
Checklist and guide for account withdrawals, contributions
| If your investing involves … | look for these documents … | from these organisations .... |
| RRSP contributions | RSP Contribution Receipt | RRSP account trustee, be it broker, bank, mutual fund company |
| RRSP contribution room | various | see four ways to find out - http://canadaonline.about.com/cs/rrsps/qt/rrsplimit.htm |
| RRSP / RRIF / LIF / LRIF withdrawals | T4 RRSP / RRIF slip | RRSP/ RRIF account trustee |
| RRIF / LIF / LRIF withdrawal limits | Evaluation letter or phone call | broker |
| Annuity payouts | T4A and T5 slips | mailed by insurance companies, both for registered or non-registered annuities |
| RESP withdrawals | T4A Educational Assistance Payment or Accumulated Income Payment slip | brokers or financial institution where RESP is held |
| Non-resident taxpayer | NR4 slip | broker |
| TFSA interest, dividends, capital gains, contributions and withdrawals | none | None – happy days! No tax reporting to do |
| TFSA contribution room and contribution or withdrawal history | phone call or online | Canada Revenue Agency – see http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/cntrbtn-eng.html |
In addition to the above checklist, we also refer blog readers to our previous post Tax Resources that can help with preparing taxes
Do it electronically!
Preparing and filing electronically makes much sense. Not only do refunds come much faster but the best of the software packages really help ensure you do not miss or mis-report anything and they may even find deductions or optimizations that save you money. Web software packages are reviewed and rated every year by CanadianFinancialDIY – see last year's results. Wikipedia also has a table comparing basics of all the packages, including the Mac and PC download versions.
Hopefully our lists prove useful to you in reducing the time, effort and frustration of tax preparation. The less time spent doing this necessary task, the more time can be spent profitably investing!
Disclaimer: this post is my opinion only and should not be construed as investment or tax advice. Readers should be aware that the above comparisons are not an investment or tax recommendation. They rest on other sources, whose accuracy is not guaranteed and the article may not interpret such results correctly. Do your homework before making any decisions and consider consulting a professional advisor.
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