Personal Income Tax — Montreal CPA Firm Near You: Who Must File, How to Prepare, Deadlines, Deductions, Refunds, and CRA Requirements

Personal income tax filing is one of the most important annual obligations for every Canadian resident. Knowing whether you must file, how to prepare, what documents you need, how to file accurately, and how to avoid penalties can save time, money, and stress. Whether you are an employee, self-employed individual, student, newcomer, retiree, caregiver, or someone with rental or investment income, understanding how the system works ensures you receive the benefits, credits, and refunds you’re entitled to.

This guide walks you through the complete personal income tax process: determining who must file, preparing documents, understanding taxable income, claiming deductions and credits, navigating deadlines, checking refund status, correcting past filings, and understanding what happens after filing. It also covers key topics such as instalment payments, CRA forms, interest and penalties, and how to help others file their returns legally and securely.

Legal and Regulatory Framework

The requirement to file an annual personal income tax return is governed by the Income Tax Act and, for Quebec residents, the Taxation Act administered by Revenu Québec. The CRA requires individuals to report worldwide income for the period during which they are considered residents of Canada. Tax obligations arise even if income is low or benefits are being claimed. Certain income types—such as self-employment, investment gains, rental income, CPP benefits, RRSP withdrawals, and foreign income—must always be reported.

The law also requires individuals to keep supporting documents, receipts, tax slips, and records for at least six years in case the CRA requests verification. Filing obligations apply even when no tax is owing, especially if you want to receive GST/HST credits, child benefits, provincial credits, disability benefits, or student-related tax advantages. The CRA may apply late-filing penalties, interest, and reassessments for non-compliance, making timely filing essential.

In addition, authorized representatives—tax preparers, accountants, lawyers, or family members—must follow CRA rules when helping others. Formal authorization is required to discuss or access someone else's tax matters. Free tax clinics also operate under CRA guidelines.

Key Court Decisions

Canadian courts have consistently upheld the CRA’s authority to enforce filing rules, impose interest, and reassess returns. In Canderel Ltd. v. Canada (SCC 1998), the Supreme Court clarified that income should be reported in a way that clearly reflects reality, reinforcing the importance of accurate documentation. In Hickman Motors (SCC 1997), the Court confirmed that CRA assessments are presumed correct unless the taxpayer provides evidence otherwise.

Other court rulings emphasize that lack of awareness is not a defense. Taxpayers remain responsible for filing on time, reporting all income, and correcting errors when discovered. These decisions highlight the importance of keeping records, understanding obligations, and seeking professional help when needed.

Why CRA Targets This Issue

Personal tax returns are one of the most actively monitored areas in the Canadian tax system. The CRA targets issues such as unreported income, late filings, missing slips, incorrect deductions, foreign income omissions, and discrepancies between reported income and financial lifestyle indicators. CRA matching programs compare tax slips from employers, banks, investment firms, government agencies, and other institutions to ensure filings are accurate.

Those who often attract CRA attention include individuals with:
• self-employment or gig economy income
• cash-based work
• investment or crypto income
• rental properties
• foreign income
• missing or incomplete slips
• multiple years unfiled
• sudden changes in reported income

Knowing your filing obligations and maintaining documentation lowers your audit risk.

Mackisen Strategy

Mackisen provides a structured, step-by-step process to ensure individuals file correctly, fully, and on time. Our strategy includes reviewing each client’s tax situation, retrieving all available slips through CRA My Account, organizing documents, identifying eligible deductions and credits, and preventing common errors that lead to reassessments.

For taxpayers needing help preparing, we guide them through:
• obtaining NETFILE access codes
• retrieving missing T4s, T5s, RRSP slips, or tuition slips
• preparing income summaries for self-employed individuals
• organizing receipts for medical, childcare, and moving expenses
• correcting previous years’ filings or missing returns

We also help clients plan ahead by analyzing withholding amounts, providing instalment reminders, and recommending strategies such as RRSP contributions to reduce taxable income. For newcomers, students, seniors, and caregivers, we explain tax rules in simple terms, ensuring they receive every credit they qualify for.

For those helping others—such as family members or executors—we assist with authorization forms, representative access (RC59, MR-69), and special rules for filing final returns after someone has passed away.

Real Client Experience

Many clients come to Mackisen unsure whether they need to file, missing tax slips, or unable to access CRA accounts. One client had years of missing filings due to lost slips and address changes. We helped restore CRA My Account, downloaded every slip for each year, prepared all returns, and recovered significant refunds the client had missed.

Another client, a newcomer, was unaware of required tax filings after arriving in Canada. We reviewed their employment income, explained residency rules, and filed returns to secure provincial benefits and GST/HST credits.

A senior client needed help managing paperwork, ensuring medical expenses were properly claimed, and correcting prior-year assessments. With our support, they received a larger refund and avoided future late-filing penalties.

Students often come to us with questions about tuition credits, transferring credits to parents, or reporting scholarship income. Mackisen ensures they maximize every available deduction. Parents, caregivers, and individuals filing on behalf of someone deceased also benefit from our guidance.

Common Questions

Who must file a tax return?
Anyone who owes taxes, wants to claim credits, has taxable income, or must report foreign income or benefits.

What documents do I need?
Tax slips such as T4s, T5s, T3s, RRSP slips, tuition slips, receipts for deductions, and prior NOAs.

How do I file?
Using NETFILE-approved software, by paper, or through a CPA firm.

Do I need a NETFILE access code?
Yes, for most software submissions. It appears on your prior NOA.

What if I cannot pay?
You can pay in instalments, set up a payment arrangement, or request CRA hardship relief.

What happens after I file?
You receive a notice of assessment, refund, or balance owing. You can request changes if needed.

What income must I report?
Employment, contract income, rental, investments, dividends, foreign income, CPP, EI, OAS, RRSP withdrawals, and more.

What deductions and credits are available?
RRSP contributions, childcare expenses, medical expenses, tuition, disability amounts, home office claims, and provincial credits.

Do special rules apply for certain groups?
Yes. Students, seniors, newcomers, caregivers, individuals with disabilities, and those experiencing housing insecurity have unique filing considerations.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses stay compliant while recovering the taxes they’re entitled to. Whether you’re filing your first GST/QST return or optimizing multi-year refunds, our expert team ensures precision, transparency, and protection from audit risk