Canadian Freelancer Tax Checklist — What to Track All Year
Tax season is stressful when you've been ignoring your books all year. It's manageable when you've been tracking things as you go. This checklist tells you exactly what to track, how to organize it, and when to do it — so you arrive at April in good shape.
The core principle
CRA requires records for minimum six years from end of the tax year. Digital copies acceptable. Each expense record needs: date, amount paid, supplier name and address, description. For income: date, amount, source.
What to track — income
Every payment you receive needs to be logged. This includes:
- Invoices sent and when paid
- E-transfers, direct deposits, PayPal, Stripe, or any other payment method
- T4A slips from clients who paid more than $500 (must report all income whether or not you receive a slip)
- Barter or non-cash payments at fair market value
Record date received, amount, and which client. Your total gross revenue — before expenses — goes on your T2125.
What to track — expenses
For every business expense, keep the receipt and note what it was for. Organize by category to make T2125 filing easier. The main categories:
- Advertising and marketing (website, ads, business cards)
- Software and subscriptions
- Phone and internet (business-use portion)
- Home office costs (rent/mortgage interest, utilities, insurance, property taxes — note square footage breakdown)
- Office supplies
- Professional fees (accountant, legal)
- Professional development (courses, books, certifications)
- Meals and entertainment with clients (note who attended and business purpose — only 50% deductible)
- Vehicle expenses if you drive for business (requires mileage log)
- Equipment purchases (depreciated over time via CCA, not expensed in full)
The mileage log
If you use a personal vehicle for business, you need a log. For each trip record: date, starting point, destination, purpose, kilometres driven. Without a log CRA will deny the vehicle claim.
What to track — GST/HST
If you're registered for GST/HST:
- Record GST/HST collected on each invoice separately from revenue
- Record GST/HST paid on business expenses (these become Input Tax Credits)
- Check running revenue total at end of every quarter
If not yet registered, track your rolling 12-month revenue. When total from any four consecutive quarters approaches $30,000, prepare to register.
Key CRA deadlines for Canadian freelancers
| Deadline | What's due |
|---|---|
| March 15 | Q4 tax instalment (if required) |
| April 30 | All taxes owing must be paid — even if you file later |
| April 30 | GST/HST return due for annual filers (if fiscal year is calendar year) |
| June 15 | T1 personal tax return due for self-employed individuals |
| Quarterly | GST/HST returns for quarterly filers (due one month after quarter end) |
You can file your T1 as late as June 15, but any taxes owing must be paid by April 30 to avoid interest charges. Filing late doesn't give you more time to pay.
Organizing your records — a simple system
You don't need fancy software to stay organized. A basic folder system works:
2025/
Income/
Invoices/
Payment confirmations/
Expenses/
Advertising/
Software/
Home office/
Phone and internet/
Professional fees/
Other/
GST/
Returns filed/
ITCs/
Bank statements/Download bank statements monthly. Scan paper receipts the same day. Name files clearly (e.g., 2025-03-Adobe-Creative-Cloud.pdf).
Monthly habits that make tax season easy
- Reconcile bank account once a month
- Update expense log weekly
- Check running GST/HST total at end of each quarter
- Invoice clients promptly and follow up on unpaid invoices
- Move GST/HST collected into a separate account right away
Year-end checklist
Before filing, confirm you have:
NorthOS does this tracking automatically
Every transaction you log in NorthOS is categorized, dated, and organized to match T2125 lines. Your GST/HST is tracked separately. At year end, your numbers are ready to hand to your accountant or file yourself.
Try NorthOS free →This checklist is for informational purposes only and does not constitute tax advice. CRA rules and deadlines can change — always verify with the CRA or a qualified tax professional.