For many Canadians, income no longer comes from just one place. Whether it’s side gigs, freelance work, or investments, having multiple streams of revenue can be empowering, but it can also make tax season feel more complicated than it needs to be.
As we’re in the midst of tax season, here are three smart ways to stay organized, reduce stress, and file with confidence this year.
1. Keep track of your finances
Before you even open your tax return, take a step back and map out every way you earned money last year. Gather all receipts, bills and invoices from the last year, which could include:
- Employment income (T4)
- Contract or freelance income (T4A)
- Investment income (T5)
- Statement of Business or Professional Activities (T2125)
- Tips or gratuities
- Self-employment or business earnings
To streamline the process, you can connect directly to the CRA through Auto-fill My Return when using TurboTax. This securely imports available tax slips into your return, saving time and reducing manual entry errors.
2. Treat your side gig like a business
If you freelance or run a small business, you may be eligible to deduct expenses related to earning that income — and those deductions can make a meaningful difference. However, it should be noted that many common deductions must be prorated. For example, home office and vehicle expenses can only be claimed for the percentage of time or space they are used for business purposes.
Common examples include:
- Home office expenses
- Internet and phone costs
- Office supplies
- Professional fees
- Travel related to your work
Tax software like TurboTax helps identify deductions that apply specifically to your situation. If you want additional support, TurboTax Expert Assist connects you with a tax expert who provides unlimited guidance and conducts a final review before you file, helping to ensure nothing is overlooked.
3. Plan ahead so you’re not caught off guard
Unlike traditional employees who have taxes deducted automatically from each paycheque, freelancers and self-employed individuals are often responsible for setting aside their own tax payments.
A practical approach is to move a fixed percentage (for example, 25 per cent) of each payment you receive into a separate savings account designated for taxes. That way, you’re prepared if you owe money.
Self-employed individuals have until June 15, 2026, to file their return — but any taxes owed must still be paid by April 30, 2026, to avoid penalties and interest.
Ready to start? Visit turbotax.ca to learn more and start filing with confidence.
