Canada Tax Deductions & Tax Credits To Take Advantage Of

Canada Tax Credits

Have you filed your taxes yet? All tax returns are due on or before April 30 (or April 15 if you or your spouse are self employed), which means there are just about 2 months left to file your paperwork.

Do you normally get a cheque or are you the one who always ends up having to pay the government in the end?

Below is a list of tax deductions and tax credits that you can claim on your tax return.

Students

  • Moving Expenses (Car Rentals, Plane Tickets, Meals & Lodging)
  • Tuition Fees
  • Textbooks
  • School Parking
  • Transit Passes
  • $400 worth of education expenses for every month that you were in university full time, or $120 per month part time.

Note: Student loans are non-taxable and students can claim a tax credit on any interest incurred on loans.

Note: If a student received a research grant, any expenses accumulated while completing the research can be deducted.

Parent & Child Tax Write-Offs

  • $2,089 per child, per year, for each child under 18 living at home. If a child has a disability, the Canadian Child Tax Benefit is increased.
  • Up to $500 in registration costs for each child if they are registered in a sport or fitness activity and are under the age of 16. Children with a disability receive an additional $500.
  • Tuition or Private Schooling Costs
  • Recreational Activities (Camp, Ballet): If the fees were paid while the parent was in school or working.

Personal

  • First time home buyers can claim a personal amount of $5,000 when qualifying to buy their first home.
  • Medical Expenses (Pharmeceutical Prescriptions, Eye Exams, Glasses, Hearing Aids, Medical Insurance, Chiropractic Costs, Massage Therapy Costs, Dental Work)
  • Transit Passes for: Buses, Ferries, Subways or any other local transit

Note: For individuals moving or relocating for a job, they can claim moving expenses as well (moving trucks, storage, temporary lodging).

Business

  • Advertising
  • Subscriptions
  • Internet Fees
  • Office Cleaning Materials
  • Website Fees (Domain Name, Hosting, etc.)
  • Computer
  • Meals & Entertainment (50% only)
  • Office Supplies (paper, pens, etc.)
  • Employee Salaries
  • Telephone Bill
  • Accounting, Tax Preparation Costs, Legal Fees
  • Business Travel Expenses
  • Home Office Expenses: Rent, Utilities, Property Taxes, Mortgate Interest, Repairs & Maintenance (Note: If your home office space is 15% of the total square footage of your home, then you can deduct 15% of your home office expenses.)
  • Company Car(s), Gas & Oil, Repairs & Maintenance, Lease Payments, Toll Charges, Insurance, Parking, Vehicle Registration Fees (Note: If you drive 20,000KMs for the year, and 50% were for business, you can write off 50% of your car expenses. If you own your vehicle, you can write off 30% of the cost of your vehicle each year – prorated for the business use portion of your car.)

What is a Capital Asset?

A capital asset is something of tangible value, which will last a long period of time (1 year or more).

Capital assets are written off over a period of time based on the CRA’s specified depreciation rates, which are:

  • Equipment (a camera for a photographer, a computer for a blogger, paint for a painter, etc.) = 30% per year
  • Furniture (computer desk, filing cabinet, etc.) = 20% per year
  • Software = 50% per year
  • Computers & Computer Equipment (printer, scanner, etc.) = 100%
  • Vehicles = 30% per year

Preparing your taxes doesn’t have to be an expensive endeavor. Get back as much money as you can and always file on time to avoid late fees.

Be sure to hold on to any receipts you may need, because you never know if you will end up being audited (but let’s hope you want).

Visit the Canada Revenue Agency’s website for more information on tax credits and tax deductions.

Related: How Long to Hold on to Financial Records in Canada

Posted on, March 7, 2014
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Comments
  1. Mary says:

    Just wanted to point out that the deadline for self employed is June 15 not April 15 however if you owe you still need to pay before the April 30th deadline.

  2. Jason says:

    Now I have paid for a private medical company to diagnose my wife to see what was making her sick, Can I claim those bills and travel expenses?

  3. Luca says:

    Hi, I’m from Italy and I’ll be in Canada as apermanent worker with my family from July 1st. Actually I got some info about taxes ecc… What I’m not sure is about tax refund for House Rental. Is there any chance to get a refund for Taxes due on the rent with the Income Tax return?
    Then, about Parent & Child Tax Write-Offs.
    you mean I get $2,089 per child, per year, for each child under 18 living at home as a refund or I can deduct from taxes $2,089?
    Thank You!
    Luca

    • Cassie Howard says:

      Hi Luca! To my knowledge, you can only write off rent if you’re a student or business owner (and even then, you can just write off a portion).

      As for child tax benefits – yes, that is the amount per child, per year (give or take). :)

  4. Richard says:

    You mentioned “For individuals moving or relocating for a job…”, that also includes plane fare, right?
    If so, I can’t figure out where to put the amount in my uFile. Would appreciate any advise. Thanks…

  5. Joseph says:

    Hi,as a tfw paying for my own flights how do I claim them as a deduction and can I get child care credit if my kids still live in the states

  6. Melissa says:

    The worst is that most people give the government an interest-free loan all year long for no good reason.
    If you have child care expenses, make regular rrsp contributions, make regular charitable donations, etc., you can request that your taxes at source be adjusted so your employer takes less in the first place.
    If your employer said, “hey, I’m going to keep a few hundred dollars of your paycheque every month, and then give that money back to you at the end of the year. No, no interest,” would you be okay with that? Why let the government do the same? Check out http://www.cra-arc.gc.ca/E/pbg/tf/t1213/README.html

  7. mike says:

    I cannot find work as a teacher in the community I live in so I took a job at a remote school 3.5 hours away. I need to rent a separated apartment and pay for commuting each week. It is not possible to have my family move to this remote community as there is a lack of resources for our child. Can I claim any of these additional costs for living out of town in a remote community?

    • Cassie Howard says:

      Hmm, that is a very good question. Your best bet is to contact an accountant, as they will be able to give you a better answer than I could.

      • Mr.Tickles says:

        Moving expenses yes. Commuting no. Rental no. Possibly something available if you are living in the far north. Otherwise you’re probably hooped.

  8. Lisa says:

    Any info on school transportation costs?
    My son was accepted to an arts school however it is not in our town so bussing is not provided.
    We pay a bussing company to transport him to and from school.
    He is in grade 5, so this is not university or college related.
    Any info would be appreciated.

    Lisa

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