10 Tax Deductions You May Not Know About

10 Tax Deductions You May Not Know About

 

tax deductions

10 Tax Deductions You May Not Know About

Each year, Canadians miss out on big savings during tax season. Whether they’re unaware of their opportunities or just don’t bother to plan ahead, the fact is, the effort does pay off! Taking the time to claim all of the tax deductions and credits you’re entitled to will ensure you keep the most money in your pocket. And that’s always a good thing.

Are you missing out on these 10 commonly overlooked deductions and credits?

 

Travel medical insurance

Traveling out of Canada? Don’t forget to claim your premiums for travel medical insurance! Just keep in mind that your total expenses must exceed 3% of your net income in order to qualify for a deduction.

 

Travel expenses to medical treatment centres

If you have to travel more than 40 km to obtain medical treatment, you may be able to claim the cost of public transportation to get there. And if public transportation isn’t readily available, you may be able to claim vehicle expenses.

If you travel more than 80 km, it’s possible that you can also claim accommodation, meal and parking expenses. The CRA website has more information on this deduction, including details on how to calculate meal and vehicle expenses.

 

Children’s arts tax credits

You might be aware of the children’s fitness tax credit, but did you know that there’s also a children’s arts tax credit?. You can claim a maximum of $500 (for membership or registration fees) if your child is enrolled in a qualifying artistic, cultural, recreational, or developmental activity.

 

Hearing aid batteries

Hearing aids, hearing aid batteries and even hearing aid repairs are all considered medical expenses, and therefore can be claimed on your tax return. There are actually quite a few eligible medical expenses that you might not know about. Click here for a full list.

 

Public transit passes

Here in Victoria, bus passes aren’t cheap. But the good news it that you can claim the cost of your monthly bus pass to reduce the amount of taxes you owe. If you don’t have your passes anymore, you can also provide receipts to support your claim.

 

Charitable donations

If you donate to a registered charity or qualified donee, you can receive tax benefits for the amount you donated. Just be sure you receive an official donation receipt. Not sure if a charity is eligible? You can check to see if they’re registered on the Canada Revenue Agency website

 

First-time home buyers’ credit

British Columbia residents who are first-time home buyers may be eligible to receive a $5000 tax credit. It’s meant to assist you with the many costs that come along with buying a home, such as legal fees, disbursements and land transfer taxes. Learn more about the First Time Home Buyers’ Tax Credit initiative.

 

Moving expenses

If you move to be closer to a new job or a new work location, or move to study full-time at a qualifying post-secondary school, you may be eligible to deduct your moving expenses. To qualify, your new home must be at least 40 km (measured by the shortest usual public route) closer to your new place of work or educational institution.

 

Carrying charges against investment income

You can claim quite a few carrying charges plus interest you paid to earn income from investments. The list includes fees to manage or take care of your investments (including safety deposit box charges), fees for certain investment advice, and fees to have someone complete your return.

 

Family caregiver amount for eligible dependents

Are you caring for a dependent with a physical or mental impairment? Then you may be eligible to claim up to an additional $2,040 in certain non-refundable tax credits.

Want to know more about your personal or corporate tax return? Get in touch with us! We can help you plan for the future and keep the most of your hard-earned dollars.

SHARE IT:

Comments are closed.