Personal income tax filing changes for Canada and Quebec

As the 2025 tax season approaches, taxpayers in Canada and Quebec should be aware of several new forms and declarations that have been introduced to enhance the filing process and ensure compliance. These updates aim to streamline the tax filing experience and provide clearer guidance for taxpayers. Here’s an overview of the new forms and declarations for this tax season.

1. Federal Changes

Updated Online Filing Forms:

The Canada Revenue Agency (CRA) will introduce enhanced online filing forms for 2025, featuring a more intuitive design and improved interactive elements. These forms will guide taxpayers through the filing process, making it easier to input information and reducing the likelihood of errors.

New Form for Reporting Digital Assets:

Continuing the trend from previous years, a revised version of Form T-1135 will be implemented for reporting digital assets, including cryptocurrencies. Taxpayers who hold digital assets with a total cost exceeding $100,000 at any point during the year will need to use this form, which includes updated sections for clearer reporting guidelines.

New Forms for Tax Credits:

Several tax credits will have new or updated forms in 2025. The Canada Workers Benefit (CWB) will feature an updated application form reflecting increased benefit amounts and expanded eligibility criteria. Additionally, forms related to the Climate Action Incentive will be revised to accommodate adjustments in the payment structure.

2. Quebec Changes

New Simplified Tax Forms:

Revenu Québec is rolling out new simplified tax forms designed for individuals with straightforward tax situations. These forms will help reduce paperwork and expedite the filing process for taxpayers without complex deductions or multiple income sources.

New Declaration for Family Tax Benefits:

A new declaration form for family tax benefits will be introduced in Quebec, requiring families to provide updated information regarding their children and dependents. This ensures that families receive accurate benefit amounts based on their current circumstances.

Updated Caregiver Deduction Form:

In response to expanded caregiver deductions, Revenu Québec will release an updated caregiver deduction form. This form will provide clearer instructions on eligibility requirements and the necessary documentation to support claims, making it easier for caregivers to navigate the process.

3. Filing Process Changes

Enhanced Electronic Filing Options:

Both the CRA and Revenu Québec continue to promote electronic filing through their online platforms. Taxpayers are strongly encouraged to utilize these options, which streamline the filing process and accelerate the processing of returns and refunds.

Mandatory E-filing for Higher-Income Taxpayers:

To improve efficiency, certain higher-income taxpayers and those with more complex tax situations may be required to file electronically in 2025. This measure aims to reduce processing times and enhance compliance.

As the 2025 tax season draws near, taxpayers in Canada and Quebec will encounter several new forms and declarations designed to simplify the filing process and improve accuracy. From updated online filing options to revised forms for reporting digital assets and family benefits, these changes are intended to enhance the overall tax experience. Taxpayers should take the time to familiarize themselves with these new requirements to ensure a smooth filing process. For personalized assistance, consulting with a tax professional is recommended to navigate the new forms effectively and maximize potential tax benefits.