Filing and Paying Personal Income Tax
To file personal income tax returns, you must gather your T4 slips (for employment income), track other taxable income sources, and claim eligible deductions. At Zen Tax, we guide you through each step to determine the tax forms you should fill out, the receipts to keep, and how to avoid common mistakes that could delay your tax refund or trigger a tax review.
Starting from July 3, 2025, the CRA has been sending its mail electronically through “My Account.” We’ll help ensure your CRA account is set up correctly, with accurate address, direct deposit info, and your access preferences. This will ensure you don’t miss important notifications from CRA about your taxable income, tax refunds, and deductions.
In Ontario, you may owe both provincial and federal income tax on personal income tax. The Canada Revenue Agency (CRA) administers both, and they use your tax return information to assess what you owe or refund. Filing deadlines, tax payment methods, and tax benefits all flow through this process. Luckily, we’re here to help you manage it correctly, year after year.
We have over 30 years of combined experience and a 5-star client rating. Therefore, you can rely on us to verify federal income tax rates, calculate your taxable income, determine the deductions you may be eligible for, and accurately calculate the total amount of income taxes owed.
Deductions to Reduce Taxable Income
Did you know you can use tax breaks to reduce your taxable income? For instance, deductions lower your taxable income, which can reduce the amount of tax you owe. At Zen Tax, we help you understand and claim both tax credits and deductions, so you never leave money on the table. So, what are deductions, and how do they work?
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Tax Deduction |
Description |
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RRSP contributions |
These are the contributions to your Registered Retirement Savings Plan. They lower your taxable income and grow tax-free until you withdraw. |
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Childcare expenses |
You can deduct the cost of summer camps, daycare, and after-school programs from your income before tax. |
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Union and professional dues |
Your membership fee for workplace unions and some professional organizations can reduce your taxable income. |
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Business or self-employment expenses |
You can deduct expenses such as utilities, home office costs, and office supplies from your total income if you’re self-employed. |
Tax Credits to Reduce Your Tax Bill
Unlike deductions that reduce your taxable income, tax credits directly reduce the amount of tax you owe. In some cases, various credits can even put money back in your pocket (known as tax refunds). At Zen Tax, we help you identify the specific tax credits you qualify for and how to apply them properly when filing your tax returns.
There are two main types of credits. Non-refundable tax credits help lower your tax bill but won’t generate a refund. That means if your credits exceed what you owe, you don’t get the extra money back. A common non-refundable credit is the charitable donation tax credit.
Refundable tax credits, on the other hand, can give you a payment even if you don’t owe any taxes at all. These credits are often based on your income, family situation, or expenses. One example is the GST/HST Credit. This is a refundable sales tax that CRA issues outside of income tax. Here are the common tax credits (that’ll reduce your total tax amount).
- GST/HST credit
- Charitable donation tax credit
- Canada workers benefits
- Dividend tax credit
- Home accessibility tax credit
- Basic personal amount
- Medical expenses
The tax experts at Zen Tax ensure every eligible credit and deduction works in your favour. That means reviewing your income sources, expenses, family situation, and life changes to uncover what you can legally claim. Whether it’s a non-refundable credit like medical expenses or a refundable credit like the GST/HST payment or Canada Workers Benefit, we apply each one correctly so you get the full benefit.
In addition, we help handle complex taxes such as income from rental property and capital gains tax, as they may affect your total income tax bill. Remember, even non-residents are subject to Canadian income tax or territorial income tax on the total income generated from employment or business in Canada. Therefore, let our tax and financial consultants in Toronto help you understand the current income tax rates and file returns.
Paying Personal Income Tax in Ontario
The tax amount you owe is based on the income earned, not your age or how you earn it. If you’re employed, your employer will deduct tax directly from your paycheck and send it to the CRA. Let our financial advisors help you confirm if those deductions are accurate. Remember, we can handle combined federal and provincial personal income taxes.
If you’re self-employed, you may need to estimate your tax and send payments to the CRA in instalments. Our tax preparation experts help you calculate how much tax you owe and determine when to pay it. Remember, delayed tax payments or failed payments may lead to negative financial and legal consequences.
Each year, you’ll need to file a personal income tax and benefit return by December 31 to report your income and calculate your taxes. Zen Tax will help you claim every eligible tax credit, like medical expenses, caregiver support, or RRSP payments. If you overpaid tax, we’ll ensure you receive a refund. If you haven’t filed tax returns before, or if your tax situation is complicated, we’ll offer professional guidance.
Why Choose Zen Tax for Personal Income Tax Services
Our consulting firm has over 30 years of combined experience in personal income taxes and a 5-star rating on Google. This reflects our continued excellence in helping Canadians handle their personal income taxes. In addition, we recently received recognition as Diamond Winners in the 2024 Readers’ Choice Awards. Therefore, Zen Tax is trusted across Ontario for professional and reliable tax help.
At Zen Tax, we don’t believe in one-size-fits-all tax filing. Your personal income tax situation is unique, whether you’re employed, self-employed, retired, or supporting dependents. We take the time to understand your income sources, family needs, and any life changes that may affect your taxes.
We also stay current on every update to CRA rules, provincial tax credits, and benefit programs so that nothing is missed. If you’re eligible for a deduction or tax credit, we’ll help you claim it. If there’s a smarter way to report your income or reduce the taxes you owe, we’ll explain it clearly and help you file with confidence.
Personal Income Tax Assistance for Individuals
Contact Zen Tax’s financial consulting and tax preparation experts. We understand the ins and outs of federal and provincial tax laws, including Ontario’s marginal tax rates, deductions, credits, and benefit programs. Whether your tax return is simple or complex, we ensure it’s done right on time and with your best interests in mind.
Don’t wait until the last minute, call us about your taxes. Whether you’re filing for the first time, managing multiple income sources, or just want peace of mind that your tax filing is done right, Zen Tax is here to help. Schedule a free consultation today.
FAQ / Resources
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The personal income tax brackets in Canada and marginal tax rates vary from year to year. Let Zen Tax help determine the current rates and calculate the personal income tax payable.
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The amount of Canadian dividends paid to you counts towards your annual income. Remember, the amount of dividend that falls within your income tax personal allowance will not be taxed. This isn’t the case for non-eligible dividends, such as dividends from foreign investments.
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The basic personal amount is the allowable income amount that you can earn before you begin paying taxes. Consult Zen Tax’s financial advisors to understand your current financial status and the basic personal amount for this year.
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Work with Zen Tax to lower your tax bill by contributing to RRSPs, claiming eligible deductions like childcare or moving expenses, and applying tax credits. We’ll also recommend other strategies to lower your tax owed without violating laws.
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Even if you earned no income, filing tax returns still matters. It opens access to provincial and federal credits, rebates, and benefits. Zen Tax will ensure your tax return file is complete, compliant, and submitted on time.
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Tax deduction is the amount reduced from your total income. It lowers the amount of your taxable income. For instance, self-employed business expenses and other deductions will reduce the amount on which the CRA charges tax.
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Once you file tax returns, you’ll automatically be signed up to get the tax benefits you’re eligible for. Consult our tax preparation experts if you need help evaluating your financial position, filing tax returns, and claiming tax refunds.
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