Every spring we review returns people filed themselves - and almost every time, we find something they could have claimed but didn't. Here are the deductions and credits most often left on the table.
RRSP contributions
Still the most powerful deduction available to most Canadians. Every dollar contributed (within your limit) comes straight off your taxable income. Check your latest Notice of Assessment for your contribution room - unused room carries forward, and many people have far more than they think.
Medical expenses
Dental work, prescriptions, glasses, physiotherapy, travel insurance premiums, some travel costs for treatment - the list of eligible medical expenses is long, and you can claim any 12-month period ending in the tax year. Combining the whole family's expenses on the lower-income spouse's return usually produces the bigger credit.
Home office expenses
If you work from home (as an employee with a signed T2200, or as a self-employed person), a portion of rent, utilities, and internet may be deductible based on the space you use for work. Self-employed people can go further - a share of property tax, insurance, and maintenance too.
Childcare costs
Daycare, after-school programs, day camps - generally deductible by the lower-income spouse, up to per-child limits. Keep the receipts; providers must include their SIN or business number.
Tuition and student credits
Tuition generates a credit for the student, and unused amounts can transfer (up to a limit) to a parent or grandparent - or carry forward indefinitely. Recent graduates often have years of unused credits sitting on their CRA account.
Charitable donations
Donations get a two-tier credit that jumps sharply above $200 per year. Couples should combine donations on one return, and you can pool up to five years of past donations to get more over the $200 threshold.
The ones almost everyone misses
- Carrying charges - investment management fees and interest on money borrowed to invest (non-registered accounts).
- Disability Tax Credit - hugely valuable and under-claimed; many qualifying conditions aren't visible ones.
- Pension income splitting - retirees can shift up to half of eligible pension income to a lower-income spouse.
- Moving expenses - if you moved 40+ km closer to a new job, school, or business location.
- Union and professional dues - including many licensing and membership fees.
Not sure what applies to you?
Personal returns start at $100 with us, and part of the job is asking the questions that surface these claims. Book a free consultation - especially if you suspect past returns missed something, because many claims can be adjusted up to ten years back.