“Are you leaving money on the table at tax time?”

Every tax season, Canadians miss out on valuable deductions and credits simply because they’re unaware of what’s available or they don’t know that they qualify. To help you maximize your return this year, we’ve compiled a list of some often-overlooked deductions and credits that can make a real difference. Each of these is designed to ease financial burdens and put money back in the hands of Canadians, so if you’re not already claiming them, now’s the time to start.

Before You Begin: Avoid Double-Dipping

One important rule to keep in mind: if you’ve already been reimbursed for an expense by an employer or an organization, you can’t claim it again as a deduction or credit. This applies to many items below - such as tuition fees or professional dues - so take a close look at your reimbursements before claiming any expenses. Not double-dipping ensures you remain compliant with the CRA and helps you accurately maximize your tax return.

1. Medical Expenses

Medical expenses are among the most commonly missed deductions. Many Canadians assume that only major medical procedures are deductible, but some out-of-pocket expenses also qualify.

For instance, you may be able to claim:

Non-traditional treatments: Like acupuncture, naturopathy, or physiotherapy.

Specialized equipment: Costs for medical devices like hearing aids, mobility devices, or custom orthotics.

Medical travel: If the care you need is unavailable locally, you can deduct the travel expenses incurred to reach a treatment facility.

Gluten-free products for celiac disease: These costs may also qualify for a deduction if you have a medical diagnosis that requires them.

Expenses NOT covered by insurance plan: Think of it like this – you go to a massage therapist and the bill comes to $200. You claim the receipt and only receive $140 back, that remaining $60 that wasn’t reimbursed can be claimed. 

It’s crucial to keep track of your receipts and consult the CRA’s complete list of eligible expenses to see what qualifies. For more details on eligible medical expenses, visit CRA’s Medical Expenses List.

2. Moving Expenses

If you’ve moved for work or school and the move brings you at least 40 km closer to your new place of employment or institution, you may qualify to claim moving expenses. This includes costs for moving trucks, storage, travel expenses during the move, and even temporary living expenses while you settle in.

Remember, moving expenses aren’t just limited to traditional movers. Self-employed individuals and students moving for school also qualify. However, keeping all receipts and checking CRA’s eligibility requirements is essential. Here’s a comprehensive guide from the CRA on claiming moving expenses: Moving Expenses - Canada.ca.

3. Union Dues and Professional Fees

Union dues and professional membership fees are commonly deductible but often overlooked. Annual dues to professional associations, union fees, and even costs associated with work-required certifications may all be claimed.

Remember that if your employer reimbursed you for any of these fees, you cannot claim them on your taxes. Check your pay stubs for union dues deductions and save invoices from professional organizations to see if you're eligible. You can learn more about eligible dues and fees here: Annual Union, Professional, or Like Dues.

4. Home Office Expenses for Employees

With many Canadians continuing to work from home due to COVID-19 and beyond, home office expenses are a critical area of potential savings. If you worked from home, even part-time, you may qualify for deductions related to home office use, such as portions of utilities, internet costs, and office supplies.

Consider using our Home Office Expense Workbooks: 1. for Work-from-Home employees and 2. for Self-Employed Individuals

5. Canada Workers Benefit (CWB)

The Canada Workers Benefit (CWB) is a refundable tax credit designed to support low-income individuals and families. You may qualify for this benefit if your earnings fall within a certain range. Single individuals and families with dependents can receive financial support through the CWB, even if they’re close to the income limit.

This credit is refundable, meaning you can benefit from it even if you don’t owe any taxes. See if you qualify and explore the CRA’s income limits and eligibility guidelines here: Canada Workers Benefit (CWB).

6. Tuition and Education Credits (Including Transfers)

Students often forget about the tuition tax credit, which can be a significant savings tool. In addition to claiming it for themselves, students can transfer unused portions of their tuition credits to their parents, grandparents, or spouses.

If you’ve paid for eligible tuition but haven’t been reimbursed by an employer, you can claim the cost. If you don’t use the credit in the current year, you can carry it forward to a future year. For more information on eligible tuition fees, click here.

7. Child Care Expenses

Childcare expenses can be claimed if the payments were made to allow a lower-income spouse to work, attend school, or train. Eligible expenses include fees for daycare, after-school programs, nannies, and certain summer camps.

It’s important to note that the lower-income spouse generally claims these expenses to maximize tax savings. Expenses must be directly related to the ability to earn income, and receipts are required. For more on eligible child care expenses, see CRA’s Child Care Expenses.

8. Disability Tax Credit (DTC)

The Disability Tax Credit (DTC) is a non-refundable credit for individuals with significant and prolonged physical or mental impairments. This credit can also be transferred to supporting family members, making it a valuable tool for families with disabled dependents.

Eligibility for the DTC requires certification by a medical practitioner and can sometimes be complex. If you believe you may qualify but haven’t claimed it before, consult a tax professional for guidance. Learn more about the DTC on CRA’s Disability Tax Credit.

9. Digital News Subscriptions

You may be eligible for a tax credit if you subscribe to digital news services from a Canadian media organization. This non-refundable credit is available for up to $500 worth of qualifying subscription costs, encouraging Canadians to stay informed while offering some tax relief.

Only subscriptions to recognized digital news organizations qualify, so check CRA’s Digital News Subscription Tax Credit for eligible sources and details on claiming.

Take Charge of Your Tax Savings

By taking the time to understand and claim these commonly missed deductions and credits, you could significantly increase your tax refund and keep more money in your pocket. Consulting a tax professional or using reliable tax software can help you maximize your return and navigate the fine print.

Still have questions and/or need support? Click here to reach out!

I LOVE banishing the ‘finance scaries’ by teaching entrepreneurs in an approachable and intuitive way. Want to know the best way to claim your Meals and Entertainment Expenses? This article is the perfect next step. It breaks down the details of how to properly claim them and start making good use of those receipts you have stored in a zip lock bag!