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Missing a deadline can result in penalties and interest. Here are the key CRA dates to know:

• April 30 — Deadline for most individual tax returns and any balance owing.
• June 15 — Extended filing deadline for self-employed individuals and their spouses (note: any balance owing is still due April 30).
• 6 months after year-end — Corporate T2 return deadline (e.g., June 30 for a December 31 year-end).
• March 15 deadline — First quarterly instalment payment due for individuals who owe more than $3,000 in taxes.

If you earn income from freelancing, contracting, or running a business, you must report it on your T1 using Form T2125 (Statement of Business Activities).

• Report all gross revenues — including cash, e-transfers, and barter income.
• Deduct eligible business expenses: home office, vehicle, phone, advertising, and professional fees.
• Pay CPP contributions on net self-employment income (both employee and employer portions).
• Register for an HST/GST number once income exceeds $30,000 in any 12-month period.
• Keep all receipts and records for at least 6 years in case of a CRA review.

The CRA administers several federal benefit programs that Canadians can access by filing their tax return each year:

• Canada Child Benefit (CCB) — Tax-free monthly payments for families with children under 18.
• GST/HST Credit — Quarterly payments to offset sales tax costs for low-to-moderate income individuals.
• Canada Carbon Rebate — Quarterly climate rebate for residents in applicable provinces.
• Canada Workers Benefit (CWB) — Refundable tax credit for low-income workers, with advance payments available.
• Disability Tax Credit (DTC) — Non-refundable credit for individuals with prolonged physical or mental impairment.
• RRSP Contribution Room — 18% of prior year's earned income (up to the annual limit) to reduce taxable income.

The CRA distinguishes between employees and subcontractors based on the nature of the working relationship — not just the contract wording. Getting this wrong can have serious tax consequences.

• Control — Employees are directed on how and when to work; subcontractors control their own workflow.
• Tools & Equipment — Employees typically use the employer's tools; contractors supply their own.
• Financial Risk — Subcontractors can profit or lose money; employees receive a set wage.
• Exclusivity — Contractors may work for multiple clients; employees generally work for one employer.
• Tax obligations — Employers deduct CPP/EI for employees; subcontractors are responsible for their own remittances.

Choosing the right business structure affects your taxes, liability, and long-term growth. Here's how the two main options compare:

• Tax Rate — Corporations pay the lower small business rate (9% federally); sole proprietors pay personal marginal rates (up to 53%).
• Income Splitting — Corporations allow salary or dividends to family members in some cases; sole props do not.
• Liability — A corporation is a separate legal entity protecting your personal assets; sole proprietors are personally liable.
• Complexity & Cost — Incorporation requires annual filings, minute books, and higher accounting fees.
• When to incorporate — Generally beneficial when net income consistently exceeds $50,000–$60,000/year.

Proactive tax planning throughout the year — not just at filing time — can significantly reduce what you owe to the CRA:

• Maximize deductible expenses — Home office, vehicle, meals (50%), professional development, and equipment all reduce net income.
• Pay yourself a salary — Generates RRSP contribution room and CPP benefits for retirement.
• Declare dividends strategically — Dividends may be taxed at a lower rate depending on your personal income.
• Defer income — Push invoices or payments to the next fiscal year to delay the tax hit.
• Invest in an RRSP or IPP — Contributions reduce taxable income dollar for dollar.
• Keep a mileage log — Business vehicle use is deductible; the CRA requires documentation.