FAQ

Your Trusted Partner in Accounting & Tax

1. When is the deadline to file my personal tax return?

For most Canadians, the deadline to file your 2025 income tax return is April 30, 2026.

Self-Employed: If you or your spouse/common-law partner are self-employed, your filing deadline is extended to June 15, 2026.
Important Note: Regardless of your filing deadline, any tax owing must be paid by April 30, 2026 to avoid interest charges.

2. What documents do I need to provide for my tax filing?

To ensure we maximize your return, please provide:

Income Slips: T4 (Employment), T5 (Investment), T4A (Pensions/Other), T4E (EI benefits).

Receipts: Medical expenses, charitable donations, and childcare costs.

Investment Info: RRSP contribution slips and FHSA (First Home Savings Account) statements.

Digital Records: As a paperless firm, we accept digital copies of all documents via our secure client portal.

3. Can I claim "Work from Home" expenses this year?

The CRA’s “simplified flat rate” method used during the pandemic has expired. For the 2025 tax year, employees must generally use the detailed method. To claim home office expenses, your employer must provide a signed Form T2200 (Declaration of Conditions of Employment). We can help you determine which portion of your rent, utilities, and internet is deductible.

4. What are the benefits of the new First Home Savings Account (FHSA)?

The FHSA is a powerful tool for first-time homebuyers. Contributions (up to $8,000 annually) are tax-deductible, similar to an RRSP, while qualified withdrawals to buy a home are tax-free, similar to a TFSA. We can advise on how to coordinate this with your Home Buyers’ Plan (HBP) for maximum impact.

5. I missed the deadline. Should I still file?

Yes. Even if you cannot pay the balance immediately, filing on time prevents the Late-Filing Penalty (starting at 5% of your balance owing plus 1% for each full month you are late). Filing also ensures your Canada Child Benefit (CCB) and GST/HST credit payments are not interrupted.

6. How long should I keep my tax records?

The CRA requires you to keep all supporting documents and receipts for six years from the end of the tax year to which they relate. Since Prism is a paperless firm, we recommend keeping digital backups of all records provided to us.

7. What is the difference between a Tax Deduction and a Tax Credit?

Deductions (like RRSP contributions or moving expenses) reduce your taxable income.
Credits (like the Basic Personal Amount or Medical Expenses) reduce the actual tax you owe dollar-for-dollar. At Prism, we analyze your file from every angle to ensure no eligible deduction or credit is missed.

8. Why should I use Prism instead of doing it myself?

Tax software is a tool, but it doesn’t offer strategy. At Prism, our “Big Four” background means we don’t just “input data.” We look for long-term tax planning opportunities, such as:

Pension splitting for seniors.
Optimizing credit transfers between spouses.
Strategic RRSP vs. TFSA contributions based on your future tax bracket.