Canadian Income Tax Expenses and Credits That You Should Know About!
Tax season can be stressful, but knowing where to find savings can make a big difference. We’re here to help you uncover the deductions and credits that often go unnoticed. From eligible medical expenses to home office deductions, there are numerous ways to ensure you maximize your return.
We’re highlighting some frequently overlooked opportunities for you to save. Let’s make sure every dollar works for you!
FREQUENTLY MISSED EXPENSES OR CREDITS:
Medical Expenses
For the 2024 tax year, you can claim a variety of medical expenses that exceed the lesser of $2,517 or 3% of your net income. This includes prescription medications, medical devices, dental treatments, and certain health-related services not covered by insurance.Charitable Donations
In 2024, donations to registered charities in Canada may provide a non-refundable tax credit. This includes cash, goods, or securities. Ensure you keep all receipts and note that the credit increases for donations over $200.Home Office Expenses
If you are working from home, you can claim home office expenses for the 2024 tax year, including a portion of rent, utilities, and internet costs. For self-employed individuals or those working from home for more than 50% of the time, these expenses are even more significant. Employees will require T2200 to make this claim.Student Loan Interest
Interest paid on government-issued student loans is still eligible for a non-refundable tax credit. Be sure to claim this for any eligible student loans in 2024.Tuition and Education Credits
For 2024, you can claim tuition fees for post-secondary education at a recognized institution. The federal tax credit allows you to claim up to $5,000 of eligible tuition fees, plus any provincial credits. You can transfer your current years tuition fees to your parents or grandparents.Childcare Expenses
If you paid for childcare in 2024 (such as daycare, summer camps, or after-school programs), you may be able to deduct those expenses, depending on your income. This applies for children under 16 or with special needs.Moving Expenses
If you moved in 2024 to be 40km closer to your job or to attend a full-time post-secondary educational institution, certain moving expenses may be deductible. The move must meet specific distance and timing criteria.Union Dues and Professional Membership Fees
For 2024, don’t forget to claim union dues, professional association fees, or other membership dues that are required to maintain your professional status.Employment Expenses
If you're required to pay for job-related expenses that are not reimbursed by your employer (like tools, supplies, or travel expenses), be sure to claim them. This can be especially significant for employees in industries such as construction or sales.Rent and Property Tax Credits
In some provinces, such as Ontario or Manitoba, you may be eligible for rent and property tax credits. These credits can be based on your household income and rent paid during 2024.Caregiver Tax Credit
If you cared for a dependent in 2024 who has a physical or mental impairment (dependents can be children or a dependent adult), you may qualify for the Canada Caregiver Credit (CCC). Ensure you check if the dependent qualifies, as there are updates to the eligibility criteria.Digital News Subscription Credit
For the 2024 tax year, you can claim up to $500 in digital news subscriptions if they are to a qualified Canadian journalism organization. Make sure to keep the receipts for the subscriptions.Tax-Free First Home Savings Account (FHSA)
If you opened a First Home Savings Account (FHSA) in 2024 to save for your first home, contributions up to $8,000 are deductible from your taxable income (with a lifetime contribution limit of $40,000). Any growth in the account is tax-free.