Release Notes - CCH iFirm Taxprep T1 2025 v.2.0 (2025.40.40.03)

About – Version 2025 2.0

This version contains most of the forms released by the Canada Revenue Agency (CRA) and Revenu Québec (RQ) for the 2025 taxation year. These forms were approved by the tax authorities and allow you to file income tax returns for taxpayers who do not require the forms listed in the Calculations and Forms Not Available or Under Review section.

This version is approved for:

• Paper filing;

• EFILE;

• Electronic filing of Form T1135;

• Using the Auto-fill My T1 return (AFR) service (TaxprepConnect functionality);

• The ReFILE service;

• The PAD (Pre-authorized debit);

• Printing the 2D bar code on the federal and Québec returns;

• Electronic filing via NetFile Québec.

 

If you want to learn about the new non-tax related features delivered with this new CCH iFirm Taxprep version, consult the Technical Release Notes.

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Modifications Made to Version 2.0

Forms, Schedules, and Workcharts Added to the Program

Québec

TP-80.AP, Statement of Farming Activities; and

TP-80.AP, Statement of Fishing Activities

Starting in the 2025 taxation year, farming or fishing income and expenses must be reported using the new TP-80.AP forms for the Québec tax return.

These new forms have replaced the Q2042 form (now known as the Q80.AP FARMING form) and the Q2121 form (now known as the Q80.AP FISHING form).

Therefore, the former Q2121 and Q2042 forms have been modified to match the new TP-80 AP forms.

If the tax return is paper-filed, farming or fishing income and expenses will be reported in the TPF-1.Y keying summary.

Finally, if the return is electronically transmitted, farming or fishing income and expenses will be transmitted to Revenu Québec.

TP-1079.8.BE, Foreign Property Return

This form is equivalent to Form T1135 for Québec.

The information entered in Form T1135 is reported into Form TP-1079.8.BE. This form is included in the electronic transmission of the TP1 return.

For more information, consult the Help.

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Updated Forms

Federal

Capital gains

Increase in the inclusion rate

For the purposes of calculations for the 2025 tax year, periods 1 and 2 are no longer necessary and have been removed from various forms.

 

Indexation of the capital gains deduction limit (gains realized before June 25, 2024, reported in 2025 by a partnership or trust)

Under Bill C-15, gains realized before June 25, 2024, reported in 2025 by a partnership or trust are subject to indexation of the capital gains deduction limit.

 

T3 Slip, Statement of Trust Income; and
T5013 Slip, Statement of Partnership Income

In order to use the limit when calculating the capital gains deduction, gains eligible for the capital gains deduction are presented as follows:

T3 slip

• Box 55 (before June 25, 2024)

• Box 55 (after June 24, 2024)

• Box 57 (before June 25, 2024)

• Box 57 (after June 24, 2024)

T5013 slip

• Box 153 (before June 25, 2024)

• Box 276 (after June 24, 2024)

• Box 154 (before June 25, 2024)

• Box 277 (after June 24, 2024)

• Box 155 (before June 25, 2024)

• Box 278 (after June 24, 2024)

 

T657, Calculation of Capital Gains Deduction

The table for 2025 consists of two parts:

• Part 1 – QFFP and QSBCS disposed before June 25, 2024, reported in 2025 (maximum of $522,145)

• Part 2 – QFFP and QSBCS reported in 2025, excluding those disposed before June 25, 2024 (maximum of $625,000)

 

Qualifying business transfers (QBT) and qualifying cooperative conversions (QCC)

Since 2024, a new capital gains deduction for qualifying business transfers (QBT) has been available. Bill C-15, published in November 2025, extends the deduction to qualifying cooperative conversions (QCC) and sets out the provisions relating to this new measure. The impacts in the program relating to QBT and QCC are as follows:

• T2048, Capital Gains Deduction for Qualifying Business Transfers or Qualifying Cooperative Conversions
  Several lines have been added to reflect Bill C-15 for calculating the allowable deduction. Due to the many changes made to Form T2048 in version 2.0 of the program, it is important to review the information entered in the files created with version 1.0, as some data may have been lost when opening these files in version 2.0.

• T2048 SUM, Capital Gains Deduction for Qualifying Business Transfers or Qualifying Cooperative Conversions
  The new Form T2048 SUM displays a summary of eligible deductions eligible qualifying business transfers (QBT) or qualifying cooperative conversions (QCC).

• T5013 Slip, Statement of Partnership Income; and
  T3 Slip, Statement of Trust Income (T3)
  Checkboxes and drop-down lists have been added to the T5013 and T3 slips to identify QBT or QCC (QBT/QCC on QSBCS, QBT/QCC on QFFP and QBT/QCC for property other than QSBCS or QFFP).

• Allowable Business Investment Losses – Federal
  Addition of a line to indicate the QBT/QCC deduction claimed when calculating the reduction attributable to capital gains deductions.
  For residents of Québec, Form TP-232.1 contains the same addition.

• Capital Loss Claimed in the Year of Death – Federal
  Addition of the QBT/QCC deduction claimed, including in the year of death, for the calculation of the amount deductible from income other than capital gains.

 

T2017, Summary of Reserves on Dispositions of Capital Property

Addition of separate sections to consider provisions:

• for dispositions of qualified farm or fishing property (QFFP) under a QBT (previous years – after 2023)

• for dispositions of qualified farm or fishing property (QFFP) under a QCC (previous years – after 2023)

• for dispositions of qualified farm or fishing property (QFFP) under a QBT (current year)

• for dispositions of qualified farm or fishing property (QFFP) under a QCC (current year)

• for dispositions of qualified small business corporation shares (QSBCS) under a QBT (previous years – after 2023)

• for dispositions of qualified small business corporation shares (QSBCS) under a QCC (previous years – after 2023)

• for dispositions of qualified small business corporation shares (QSBCS) under a QBT (current year)

• for dispositions of qualified small business corporation shares (QSBCS) under a QCC (current year)

• for dispositions of property (other than QSBCS and QFFP) under a QBT (previous years – after 2023)

• for dispositions of property (other than QSBCS and QFFP) under a QCC (previous years – after 2023)

• for dispositions of property (other than QSBCS and QFFP) under a QBT (current year)

• for dispositions of property (other than QSBCS and QFFP) under a QCC (current year)

 

T936, Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2025

Lines have been added to consider a QBT or QCC in the calculations of Part 3 and Chart A.

 

T657, Calculation of Capital Gains Deduction

Under Bill C-15, taxpayers must claim deductions for a QBT or QCC before claiming the capital gains deduction. Therefore, to avoid double claiming on the same gain, lines for entering amounts related to QBT and QCC have been included on Form T657.

 

Provisions from T3 slip

The provisions shown in box 30 of the T3 slip now relate directly to lines 10700 and 11000 of Schedule 3; they were previously included in Form T2017.

Modifications to the CCA calculation related to Bill C-15

Following the changes proposed in Bill C-15 introduced in the House of Commons on November 18, 2025, the CRA has updated the income and expense statements in which capital cost allowance (CCA) is calculated, notably to take into account the rules for re-accelerated investment incentive property (RIIP) and the new adjustment factors applicable to them. Certain rules relating to accelerated investment incentive property (AIIP) have also been amended.

As a result, the CCA calculation tables in Forms T776 and T2042, T2125, T2121, T1163 and T1273 as well as the underlying custom forms used to calculate CCA have been updated to reflect the calculations for AIIP and RIIP.

Note: The Canada Revenue Agency (CRA) has informed us that further changes will be made to the calculation of CCA in certain tax forms (T2125, T2042, T2121, T776, T1163, T1273 and PARTNER). Pending the release of final versions, the CRA has asked us to place a Under Review watermark on each of the forms mentioned above. The equivalent Québec forms are also being reviewed. These forms will be available for filing in the next version of the program, which will be available in early March.

Revenu Québec has confirmed that the amendments included in Bill C-15 also apply to the corresponding Québec income and expense statements. As such, since the CCA calculation tables in Forms TP-80, TP-80.AP and TP-128 will not be updated for the 2025 tax year, only the calculation in columns 9, Capital Cost Allowance, and 10, UCC at the end of the year, is performed correctly, taking into account the calculations for RIIP.

Changes related to the addition of depreciable property class

The following capital cost allowance class is now available in the program:

• Class 1.4 (10%): New purpose-built residential rental if construction began after April 15, 2024, and before 2031;

Therefore, Forms T776, T2042, T2125, T2121 et T1163 allow you to select this class when necessary.

Alternative minimum tax

Due to Bill C-15, investment counsel fees are now considered deductible expenses at a rate of 50% for the purpose of calculating the alternative minimum tax (AMT). In addition, Bill C-15 provides for the exclusion of a class of property consisting of flow-through shares from capital gains on gifts of publicly listed securities included at a rate of 30% in the calculation of the AMT.

These changes are reflected in the program as follows:

T691, Alternative Minimum Tax

• The line Investment counsel fees has been added to Part 1 to limit the expense.

• A line allowing the amount from line 68231 of Form T1170 to be carried forward has been added to the line Capital gains on gifts of publicly listed securities to allow for its exclusion.

Statement of Investment Income, Carrying Charges and Interest Expenses

• A separate line, Investment counsel fees, has been added to enter the amount subject to the limitation.

T1170, Capital Gains on Gifts of Certain Capital Property

• Line 68231 has been added to allow the exclusion of gains from a class of property consisting of flow-through shares in the calculation of the AMT.

Designated immediate expensing property (DIEP)

The immediate expensing measure has ended on December 31, 2024. Any property that becomes available for use in a taxation year after 2024 is no longer eligible.

DIEP will not be calculated in the self-employment forms (T2042, T2121, T2125, T1163, T1273 and T776) for acquisitions made in 2025. This change has also been applied in the equivalent Québec forms.

Non-refundable top-up tax credit

The federal government has introduced a non-refundable top-up tax credit to prevent certain taxpayers from being disadvantaged by the gradual reduction in the first federal tax rate (from 15% to 14.5% in 2025, then to 14% in 2026). Indeed, since the value of non-refundable tax credits is calculated based on the first rate, a decrease in this rate automatically reduces the value of these credits. In some cases, this could negate or even exceed the benefit provided by the tax reduction. When necessary, the top-up tax credit helps maintain a value equivalent to 15% for non-refundable tax credits on the portion of income that exceeds the first tax bracket ($57,375 in 2025). This measure is temporary and applies for the 2025 to 2030 taxation years.

Schedule 15, FHSA Contributions, Transfers, and Activities

For the 2025 year, multiple lines have been added:

• Total contributions made to your FHSAs in 2024 (from your 2025 FHSA participation room statement)

• Contributions to your FHSAs in 2024 before your first qualifying withdrawal (from your 2025 FHSA participation room statement)

• Variable "H" amount of your annual FHSA limit for 2024 (from your 2025 FHSA participation room statement)

• Variable "F" amount of your annual FHSA limit for 2024 (from your 2025 FHSA participation room statement)

GST370, Employee and Partner GST/HST Rebate Application

Nova Scotia has reduced its harmonized sales tax (HST) rate from 15% to 14%, effective April 1, 2025. This change results from a 1% reduction in the provincial component (9% provincial + 5% federal). Please note that Form GST370 is currently under review in version 2. The 2025 update will be included in the next version of the program, which is scheduled for release in early March 2026. This version will reflect the new 14% HST rate applicable in Nova Scotia.

ACB, Tracking the Adjusted Cost Base

The Crypto-assets asset category has been added to the Asset category drop-down list following the addition of section Crypto-assets to Schedule 3.

If you have transactions related to crypto-assets rolled forward from last year that are using the Bonds, debentures, promissory notes, crypto-assets and other similar properties asset category, we recommend that you transfer these transactions in a separate copy using the new Crypto-assets asset category.

T1028, RRSP/PRPP/FHSA Information or Notice of Assessment

The following lines have been added to Form T1028 to allow the amounts to be entered:

• Total contributions made to your FHSAs in 2024 (from your 2025 FHSA participation room statement)

• Contributions to your FHSAs in 2024 before your first qualifying withdrawal (from your 2025 FHSA participation room statement)

• Variable "H" amount of your annual FHSA limit for 2024 (from your 2025 FHSA participation room statement)

• Variable "F" amount of your annual FHSA limit for 2024 (from your 2025 FHSA participation room statement)

T2038, Investment Tax Credit (Individuals)

The section Recapture – ITC for child care spaces has been removed from Part C of Form T2038 given that child care spaces are no longer eligible for the investment tax credit (ITC) since 2020.

T2043, Return of Fuel Charge Proceeds to Farmers Tax Credit

The 2025 tax year is the last year in which Form T2043 can be used to claim the return of fuel charge proceeds to farmers tax credit. The credit remains in effect for the 2025 tax year, but it is only available if the fiscal period begins in 2024 and ends in 2025.

Any business with a fiscal period beginning on or after January 1, 2025, is not eligible for the credit.

 

Québec

TP-21.4.39, Cryptoasset Return

Part Rental income (or losses) from cryptoassets has been removed.

Two types of cryptossets have been added: Private cryptocurrency and Stablecoins. These types have also been integrated into the cryptoasset options of Schedule 3.

TP-128 – Income and Expenses Respecting the Rental of Immovable Property

With the update of these forms, the calculation of net rental income before capital cost allowance has been modified to exclude expenses attributable to non-compliant short-term rentals.

There are several changes to Part Net rental income (or net rental loss) before capital cost allowance, including:

• The addition of a line to identify income from short-term rentals. When the form is applicable, this amount is equal to the amount on line 8140 of Form T776.

• The addition of column C, Portion attributable to short-term expenses, to the expense table. When the form is applicable, the values in this column are calculated based on the inputs of the Short-term rental portion of total expenses column in Part 4 of Form T776.

In addition, Part Non-compliant short-term rental expenses has been added to the forms. When the forms are applicable, this part is completed using the information entered in tables A and B of Form T776. The Add and Delete buttons are available because the laws governing short-term rentals in Québec differ from federal laws.

Finally, Part Capital cost allowance has also been modified. Column 9 now represents CCA before adjustment for non-compliant short-term rental expenses. Columns 9.1, CCA for non-compliant short-term rentals, and 9.2, CCA, have been added. Capital cost allowance corresponds to the total in column 9.2.

TP-776.42, Alternative Minimum Tax

Section 8, Tax credits transferred by your spouse, has been added to the form.

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Forms Removed

Federal

• 24901 – Additional Security Options Deduction

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Calculations and Forms Not Available or Under Review

Forms Under Review

You can access the forms under review from the Form Manager. Although these forms are functional, they have not yet been updated for 2025. The following forms are presently under review for one of the following reasons: either the CRA has not yet released the final version, or we have received the form too late to integrate it.

Forms under review:

• Forms relating to mining exploration, resources and RS&ED tax credits

• Forms relating to provincial and territorial taxes for multiple jurisdictions situations

• Forms relating to foreign tax credits

• T1206 and TP-766.3.4 – Tax on Split Income

• T5013, Statement of Partnership

• GST-370 and GST DEPENSES – GST/HST Rebate Application

• TP-726.7, Capital Gains Deduction on Qualified Property

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Modifications Made to Version 1.0

Forms, Schedules, and Workcharts Added to the Program

Québec

LM-91, Self-declaration Relating to the Application of the Charter of the French Language

This form is intended for individuals (or individuals in business) who wish to receive services from Revenu Québec in English, in accordance with an exception provided for in the Charter of the French Language. As a general rule, Revenu Québec must communicate with its clients in French only, with some exceptions.

You must complete the form if you are covered by one of the exceptions below:

1. Individuals eligible for English-language education in Québec;

2. Indigenous persons (members of the 11 nations recognized in Québec);

3. Individuals whose primary residence is not in Québec;

4. Immigrants admitted to Canada (except temporary workers) may receive services in English for six months only, after which the services will be automatically provided in French.

You do not have to complete the form if Revenu Québec was already communicating with you in English before May 13, 2021 (acquired right).

 

Saskatchewan

Saskatchewan Home Renovation Tax Credit

A non-refundable home renovation tax credit has been introduced. Saskatchewan homeowners may save up to $420 annually in provincial income tax by claiming a 10.5% tax credit on up to $4,000 of eligible home renovation expenses. Those who are 65 years old and over at the end of the year may save up to $525 annually, based on maximum eligible home renovation expenses of $5,000.

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Updated Forms

Client letters

The Québec letters have been updated to include the following changes:

• Form LM-91 has been added as a form to be signed in the client letter.

• A paragraph confirming that the taxpayer has not received, held or disposed of cryptoassets during the year has been added to the Québec client letters. This paragraph is displayed when box 24 of the TP-1 return is selected to No.

• Updates have been made to the letters in version 1.0 to take into consideration the new Form TP-1079.8.BE, Foreign Property Return, to be signed, despite the form not being available until version 2.0.

 

Federal

Direct Deposit Tracking

The CRA no longer accepts direct deposit enrolments or changes made with EFILE tax software. The sole purpose of this form is now to track the direct deposit information rolled forward from prior years. The name of the form has been modified to reflect this change.

For more information on the direct deposit, visit:

https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/direct-deposit/individuals.html

Benefits – Changes to child benefits and abolition of the carbon tax

Several changes have been made to benefits.

CCB and PROV BEN

First, the Canada child benefit (CCB) is now paid for 6 months following the death of a child. As a result of the federal announcement, the provinces below have harmonized their child benefits:

• Ontario – Ontario child benefit

• British Columbia – BC family benefit

• Yukon – Yukon child benefit

• Nunavut – Nunavut child benefit

• New Brunswick – New Brunswick child tax benefit

• Nova Scotia – Nova Scotia child benefit

• Québec – Family Allowance (the period is 12 months rather than 6 months.)

GSTC

Next, due to the abolition of the carbon tax, the following measures have been removed from the form and client letters:

• Canada Carbon Rebate

• British Columbia climate action tax credit

• Nunavut carbon credit

• Yukon Government carbon price rebate

• Northwest Territories cost of living offset

Schedule 3, Capital Gains or Losses

Periods 1 and 2 have been removed by the CRA.

A section has been added to report the proceeds of disposition and gains (or losses) related to crypto-assets. As a result, these transactions must now be entered in section 6 of Part 3.

Capital gains from certain dispositions of an interest in a partnership subject to a 100% inclusion rate must now be entered in the new field 19890, which is replacing the former field 50410.

Schedule 15, FHSA Contributions, Transfers and Activities

In order to take into account certain amounts calculated in previous years, several lines have been added to Schedule 15, including two lines relating to the amount of variables F and H of the annual FHSA limit.

T3, Statement of Trust Income

Deletion of boxes

Since the periods before June 25, 2024, and after June 24, 2024, are no longer necessary in relation to the capital gains inclusion rate but remain relevant in certain situations due to the increase in the lifetime capital gains exemption, numerous changes have been made to the T3 slip.

The following boxes have been deleted:

• 52, 53, 54, 56, 58 and 59

Other boxes have been added:

• 55¹, 55² and 55³ (box 55)

• 57¹, 57² and 57³ (box 57)

T4PS, Statement of Employees Profit Sharing Plan

Deletion of periods 1 and 2 in box 34

The periods before June 25, 2024, and after June 24, 2024, relating to the measure aiming to increase the capital gains inclusion rate announced in 2024, are no longer necessary. As a result, boxes 34^1a, 34^1b, 34^2a, 34^2b, 34^3a and 34^3b have been deleted.

T5, Statement of Investment Income

Deletion of box 34

The periods before June 25, 2024, and after June 24, 2024, relating to the measure aiming to increase the capital gains inclusion rate announced in 2024, are no longer necessary. As a result, box 34 has been deleted.

T5008, Statement of Securities Transactions

Deletion of periods 1 and 2 relating to capital gains

The periods before June 25, 2024, and after June 24, 2024, relating to the measure aiming to increase the capital gains inclusion rate announced in 2024, are no longer necessary. As a result, the lines provided for that purpose have been deleted.

T1028, RRSP/PRPP/FHSA Information or Notice of Assessment

In order to calculate Schedule 15 correctly, substantial information from the previous year is required. This information is included in the notice of assessment for the previous year or in Form T1028 for the current year.

The following lines have been added to enable the roll forward or entry of relevant information:

• Variable “F” amount of your annual FHSA limit

• Variable “H” amount of your annual FHSA limit

• Your FHSA carryforward for 2024

T1141, Information Return in Respect of Contributions to Non-Resident Trusts, Arrangements or Entities

Form T1141 has been updated to allow for a joint election to be made so that a single person can file all T1141 returns on behalf of the others when multiple individuals are required to file them.

Boxes have been added to confirm that the information reported in sections A, B, C, and D is supported by supporting documents and to identify the supporting documents that are attached to the form. Questions have been added to page 2 of the form to obtain information about the administration of the trust, the arrangement or the non-resident entity.

T1142, Information Return in Respect of Distributions From and Indebtedness to a Non-Resident Trust

Form T1142 has been updated to collect more detailed information on non‑resident trusts and their settlors.

Additional details about the non‑resident trust and its settlors are now requested in section A, and questions regarding the administration of the non‑resident trust have been added to this section.

Boxes have been added to sections A, B and C to confirm that supporting documents related to the information provided are available.

Section D now allows filers to confirm that supporting documents related to sections A, B or C are attached to the form.

Finally, the Japanese yen has been added as a functional currency.

 

Québec

Schedule H, Tax Credit for Caregivers

A few changes have been made to Schedule H. These changes are solely related to the layout and have no tax implications.

The grid Reduction Calculation (Lines 259 and 359 of Schedule H) for the reduction of the tax credit for a care receiver who turned 18 years old in 2025 has been added to Schedule H.

Revenu Québec has removed Form Tax Credit for Caregivers for a third and/or fourth care receiver. The calculation grid Tax Credit for Caregivers (Additional) has been created to calculate the credit for a third and/or fourth care receiver.

The grid Reduction Calculation (Lines 259 and 359 of Form TP-1029.8.61.64) for the reduction of the tax credit for a third and/or fourth care receiver who turned 18 years old in 2025 has been replaced by Form Reduction Calculation (Lines 259 and 359 of QH Additional).

Schedule V, Tax Credits for Donations and Gifts

The tax credit for cultural patronage donations was abolished on March 25, 2025. However, this doesn’t affect the carryforward period for donations made before March 26, 2025.

It remains possible to claim this tax credit for cultural patronage donations made before March 26, 2025 to an eligible cultural organization or a registered museum institution.

Part C of the form has been adjusted to reflect the amendments made to the law. In particular, it specifies that a pledge of donation must have been submitted to the Minister of Culture and Communications no later than March 25, 2025 in order to be eligible.

Request for Direct Deposit

Unlike the CRA, Revenu Québec still accepts direct deposit enrolments or changes made with EFILE tax software. As a result, the form has been modified to allow the input without overrides of banking information required for direct deposit with Revenu Québec.

RL-3 Slip, Statement of Investment Income)

Deletion of periods 1 and 2 relating to capital gains

The periods before June 25, 2024, and after June 24, 2024, relating to the measure aiming to increase the capital gains inclusion rate announced in 2024, are no longer necessary. As a result, boxes I-1 and I-2 have been deleted.

RL-16 Slip, Statement of Trust Income

Deletion of boxes

Since the periods before June 25, 2024, and after June 24, 2024, are no longer necessary in relation to the capital gains inclusion rate but remain relevant in certain situations due to the increase in the lifetime capital gains exemption, numerous changes have been made to the RL-16 slip.

The following boxes have been deleted:

• A-5, A-6, A-7, A-9, H-4, H-6, H-9, H-10, H-5, H-8 and A-8

Other boxes have been added:

• H-11, H-22 and H-13 (case H-1)

• H-21, H-22 and H-23 (case H-2)

• H-31, H-32 and H-33 (case H-3)

• H-71, H-72 and H-73 (case H-7)

RL-18 Slip, Statement of Securities Transactions

Deletion of periods 1 and 2 relating to capital gains

The periods before June 25, 2024, and after June 24, 2024, relating to the measure aiming to increase the capital gains inclusion rate announced in 2024, are no longer necessary. As a result, the lines provided for that purpose have been deleted.

RL-25 Slip, Statement of Employees Profit Sharing Plan

Deletion of periods 1 and 2 relating to capital gains

The periods before June 25, 2024, and after June 24, 2024, relating to the measure aiming to increase the capital gains inclusion rate announced in 2024, are no longer necessary. As a result, boxes B-2, B-3, C-3¹, C-4¹, C-3² and C-4² have been deleted.

TP-752.PC, Tax Credit for Career Extension

The form has been updated to reflect the changes announced in the last budget:

• The age of eligibility has been raised from 60 to 65 years old;

• The amount of the exclusion of the first dollars of eligible work income has been raised from $5,000 to $7,500;

• The maximum amount of eligible work income on which the tax credit is calculated has been increased from $11,000 to $12,500.

• The amount of the reduction threshold has been raised from $40,925 to $56,500;

• The reduction is now based on net individual income;

• The applicable reduction rate has been raised from 5% to 7%;

• The grandfathering rule applicable to workers born before January 1, 1951, has been abolished.

 

Ontario

ON479, Ontario Credits

Ontario is providing additional support to families who wish to undergo fertility treatment through the new fertility treatment tax credit. This refundable tax credit can cover up to 25% of eligible fertility treatment expenses for Ontario residents, up to a maximum of $5,000 per year. These expenses may include IVF cycles, fertility medications, travel costs for treatment and diagnostic tests.

 

Alberta

AB428, Alberta Tax and Credits

A tax rate of 8% now applies to the first $60,000 of taxable income. The thresholds for tax brackets exceeding this amount have increased by approximately 2%.

The Alberta supplemental tax credit has been introduced. This credit is equal to 2% of the total amount of certain non-refundable tax credits claimed by an individual that exceeds $60,000. It aims to ensure that Albertans claiming high amounts of non-refundable credits are not disadvantaged by the introduction of the new 8% tax bracket.

Effective July 4, 2025, contributions made to an association of potential candidates qualify for the political contributions tax credit, thus expanding opportunities to support provincial political activities.

General T1, Income Tax and Benefit Return

The section Consent to share contact information – Organ and tissue donor registry has been added to the form.

 

British Columbia

BC479, British Columbia Credits

The annual limit for the British Columbia venture capital tax credit has increased from $120,000 to $300,000 per individual. This new limit applies only to investments made on or after March 4, 2025.

Effective April 1, 2025, First Nation individuals and persons with disabilities who would have qualified for the Apprenticeship Incentive Grant, had it remained available, are now eligible for a $500 enhanced tax credit for each completed Level 1 or Level 2 of an eligible Red Seal program.

 

Saskatchewan

Saskatchewan Credits

A refundable fertility tax credit of 50% of eligible expenses, for a maximum credit of up to $10,000, has been introduced.

The maximum amount of the active families benefit for eligible children as well as the income threshold have doubled.

Saskatchewan Graduate Retention Program

The maximum lifetime amount of the graduate retention program for individuals graduating on or after October 1, 2024, has increased from $20,000 to $24,000.

 

Manitoba

MB428, Manitoba Tax

The basic personal amount is now progressively reduced for individuals whose net income exceeds $200,000 and is completely eliminated when the net income reaches $400,000. Moreover, the volunteer firefighters’ amount and the search and rescue volunteers’ amount have been increased to $6,000, bringing the maximum annual credit to $648.

MB479, Manitoba Credits

The former school tax credit for homeowners and the education property tax credit have been replaced with the homeowners affordability tax credit. The renters tax credit has been renamed the renters affordability tax credit. The maximum amount of this credit has been increased to $575 and includes an enhanced supplement of $328 for seniors. A rental housing construction incentive tax credit has also been introduced to support the housing supply in the province.

Finally, the cultural industries printing tax credit, which was initially temporary, has been made permanent. This refundable credit is equal to 35% of eligible printing costs incurred for the production of original Canadian books printed in Manitoba, up to an annual limit of $1.1 million per company.

 

Nova Scotia

NS428, Nova Scotia Tax

Effective January 1, 2025, the spouse or common-law partner amount, the amount for an eligible dependant and the age amount have increased. The income-based supplement that previously applied to these credits is no longer applicable. The supplement amounts are now included in the base amounts. These credits are now available to all eligible taxpayers, regardless of income. Worksheet NS428 has been adjusted accordingly.

Finally, the tax rate for "other than eligible" dividends has been reduced to 1.5%.

 

Prince Edward Island

PE428, Prince Edward Island Tax and Credits

As announced in the 2024 provincial budget, tax rates have been lowered for most income brackets, with the exception of the highest bracket, for which the rate has been increased. These adjustments are intended to reduce the tax burden on families and individuals with low or middle incomes in particular.

The tax rates have been revised as follows:

• Rate reduced from 9.65% to 9.50% on the portion of taxable income of $33,328 or less

• Rate reduced from 13.63% to 13.47% on the portion of taxable income exceeding $33,328 but not exceeding $64,656

• Rate reduced from 16.65% to 16.60% on the portion of taxable income exceeding $64,656 but not exceeding $105,000

• Rate reduced from 18.00% to 17.62% on the portion of taxable income exceeding $105,000 but not exceeding $140,000

• Rate increased from 18.75% to 19.00% on the portion of taxable income exceeding $140,000

The rate for the Prince Edward Island non-refundable tax credits has decreased and stands at 9.5% for the 2025 taxation year.

 

Yukon

Schedule YT(S14), Yukon Government Carbon Price Rebate

Starting with the taxation year ending on or after April 1, 2025, Yukon businesses are no longer eligible for the carbon price rebate. This measure has ended due to the termination of the federal carbon pricing program in the territory. The final rebate may be claimed for taxation years ending no later than March 31, 2025.

YT479, Yukon Credits

The refundable Yukon tax credit for fertility and surrogacy expenses is now available for eligible taxpayers. This credit covers 40% of eligible medical expenses, up to a maximum of $10,000 per year, with an unlimited lifetime claim limit.

 

Nunavut

NU428, Nunavut Tax

Starting in the 2025 taxation year, eligibility for the volunteer firefighters' tax credit has been changed to include search and rescue volunteers, and the credit amount has increased from $500 to $722. Nunavut has also reduced the number of volunteer hours required to claim this credit, from 200 hours to only 50 hours per year.

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Forms Removed

Federal

• 31350 - Digital News Subscription Expenses

• AUTHORIZATION - Authorization/cancellation request – signature page

Québec

• QH Reduction - Calculation (Lines 259 and 359 of Schedule H)

• TP-1029.8.61.64 - Tax Credit for Caregivers

• TP-1029.8.61.64 Reduction - Reduction Calculation (Lines 259 and 359 of Form TP-1029.8.61.64)

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Corrected Calculations

The following problems have been corrected in version 2025 1.0:

Federal

• T3 slip – Incorrect calculation in Schedule 3 when an amount is entered in boxes 30 and 52 of the T3 slip

• Schedule 8/Schedule 8 QC and Form RC381 – EFILE error codes 90308 and 95031

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Information about EFILE

Federal

Important dates

• February 23, 2026 Opening of the EFILE On-Line transmission system.
• January 29, 2027 The CRA will stop accepting electronically filed T1 returns.

Registration and Renewal On-line

To renew your EFILE privileges for this year’s tax season, you must follow the instructions provided on the "Renewal" page on the CRA Web site at http://www.efile.cra.gc.ca/l-rnwl-eng.html.

To register as a new electronic filer, you must register online by completing the EFILE Registration On-Line form on the CRA Web site at http://www.efile.cra.gc.ca/l-rgstr-eng.html.

You will find more information concerning renewals and new applications at http://www.efile.cra.gc.ca/.

In order to be able to electronically file Form AUTHORIZATION, you must meet the following two criteria:

1. Have a valid EFILE number and password; and
2. Be a registered representative (online access).

A registered representative is a person who is registered with the CRA’s Represent a Client service. To register with the service, go to http://www.cra.gc.ca/representatives

Québec 

Important dates

• February 23, 2026 – Opening of the NetFile Québec system.
• February 23, 2026 – Opening of the Refund Info-line system.
• January 29, 2027 – The NetFile Québec system will shut down.

NetFile Québec

• Tax preparers must register for “My Account for professional representatives” (available in French only), a secure space on RQ’s Web site, if they have not already done so in the past.
  
  Note that renewal is automatic for persons who registered for this space in the past.
• Consult the page “À qui s'adresse Mon dossier” (available in French only) to see which profile applies to you and what actions you can perform online on behalf of a business or an individual.

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Import or convert preparer profiles, custom letters, custom print formats and custom diagnostics

When a new taxation year is added to the application, remember that the prior period Preparer Profile, custom letters, custom print formats and custom diagnostics must be imported or converted.

For more information, please consult the following FAQ: https://support.cch.com/canada/solution/000118906/FAQ-Why-is-my-current-Preparer-Profile-empty-since-the-latest-deployment-of-CCH-iFirm-Tax?language=en

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Auto-fill T1 return – 2025 Tax Season

Important dates

Federal

February 9, 2026 – Opening of the Auto-fill T1 return service. The CRA tax data can be downloaded from the RETRIEVE tab.

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Tax Data Download from Revenu Québec – 2025 Tax Season

Important dates

Québec

February 23, 2026 – Opening of the Tax Data Download service.

The Revenu Québec tax data can be downloaded from the RETRIEVE tab.

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Electronic services prior years’ support

Federal

In addition to the current tax year 2025, the CRA also supports prior-year electronic services as indicated below until January 2027:

	2024	2023	2022	2021	2020	2019	2018	2017	2016
T1 EFILE (original returns)	✓	✓	✓	✓	✓	✓	✓
T1 ReFILE (amended returns)	✓	✓	✓
T1135	✓	✓	✓	✓	✓	✓	✓
Auto-fill my return (slips only)	✓	✓	✓	✓	✓	✓	✓	✓	✓

* You will have to use the CCH iFirm Taxprep T1 program for the year in question and update your EFILE password to the current year.

Québec

In addition to the current tax year 2025, Revenu Québec also supports prior-year electronic services as indicated below until January 2027:

	2024	2023	2022	2021
TP1 Netfile Québec (original returns)	✓	✓	✓	✓
TP1 Netfile Québec (amended returns)	✓	✓	✓	✓
Tax data download	✓	✓	✓	✓

* You will have to use the CCH iFirm Taxprep T1 program for the year in question and update your EFILE password to the current year.

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Getting Help

Benefit from our Advanced Virtual Agent 24/7!

Since January 1, 2025, the customer support teams offer their high-quality service exclusively through digital channels, and no longer offer incoming phone support.

Register for our Support Platform and log in to our virtual agent to find answers, submit a support ticket or chat with a live agent.

For more details about the web ticketing system and best practices, watch the following “How to” videos:

• How to Register for the Support Platform to Begin

• How to Open a Support Case

• How to Manage Your Support Cases

• How to Reset Your Support Platform Password

 

Useful support links:

Knowledge Base

More than 40,000 articles that answer the technical and tax questions most commonly asked to Support Centre agents.

 

Video tutorials and eHub training videos

We offer a wide range of training videos on how the applications work and their most frequently used features. You can also access eHub training videos from within your application by clicking the question mark (Help) in the upper right corner of the screen.

 

CCH iFirm Taxprep Help Centres

Select your application and access the CCH iFirm Taxprep help topics. You can also access the help topics by pressing the F1 key from within a return.

 

Support platform to request online support

Submit questions and requests through the virtual agent, support cases or live chat.

 

Support website

The support site brings together hot topics, the Knowledge Base, the calendar of product release dates, and more. 

 

Contact the team that can meet your needs

Contact the team that can best meet your needs directly.

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CCH iFirm Taxprep T1 e-Bulletin

For your convenience, you are automatically subscribed to the CCH iFirm Taxprep T1 e-Bulletin, a free e-mail service that ensures you receive up-to-date information about the application. If you want to review your subscription to Taxprep e-Bulletin, visit https://support.wolterskluwer.ca/en/ and, in the Newsletter tab, select Subscription Manager.

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