No matter who wins the April 28 federal election, Canadians of all political stripes will be united in the drudgery of an April 30 tax filing deadline.
As last-minute tax filers hunker down this weekend to complete their 2024 returns, an H&R Block survey finds half of us are forgetting to include some benefits, deductions and credits.
According to the tax preparation service, nearly $3,000 on average in potential tax savings is going untapped. The survey also finds 65 per cent of us are not aware we can amend tax returns to include them as far back as ten years.
Of the more than 400 tax credits and deductions available, H&R Block has listed the ten most commonly missed tax breaks.
1. Child Care Expense Deduction
The Canada Revenue Agency (CRA) allows childcare expense deductions up to $8,000 for each child under seven years, $5,000 per child between seven and 16 years old, and $11,000 for a disabled child.
2. Canada Caregiver Credit (CCC)
Canadians supporting a spouse, partner, child, or dependent with a disability or medical condition can claim a non-refundable tax credit of up to $8,375. Refundable tax credits are amounts that you receive regardless of how much income tax you pay.
3. Medical Expense Tax Credit (METC)
Tax credits are permitted for expenses including prescription glasses and sunglasses, dental work (such as crowns, braces and dental implants), therapy and mental health services, and gluten-free food for celiac disease.
Credits are also allowed for travel for medical treatment over 40 kilometers. In addition to keeping receipts, it’s important to log the distances from your vehicle’s odometer.
4. Canada Workers Benefit (CWB)
If your income in 2024 was below a certain threshold, a refundable tax credit is available with a maximum of $1,590 for individuals and $2,739 for families.
5. Tuition and Education Tax Credits
Students can transfer up to $5,000 of unused tuition credits to a parent, spouse, or grandparent. Student who forgot to claim past tuition fees can carry unused credits forward for an unlimited period of time.
6. Interest on Student Loans
You can claim interest paid on federal and provincial student loans in 2024 on your 2024 return, or in any of the past five years.
7. Home Accessibility Tax Credit (HATC)
Credits are available for seniors over 65 years or disabled individuals on home renovations that improve accessibility. The credit amount is 12.5 per cent up to $2,500 in Quebec and 15 per cent up to $3,000 in the rest of Canada on expenses up to $20,000 (including GST/HST).
8. Moving Expense Deduction
If you move at least 40 kilometers closer to work or school, you might be eligible to deduct moving costs like transportation and travel, temporary living expenses and real estate fees.
9. Disability Tax Credit (DTC)
Individuals with prolonged physical or mental impairments, including ADHD and diabetes, can claim up to $9,872 in nonrefundable tax credits.
10. First-Time Home Buyers’ Tax Credit
A $10,000 credit for qualified first-time home buyers can save $1,200 in taxes for Quebec residents and $1,500 in the rest of Canada.
