Top 10 Tax Deductions Canadians Miss Every Year
As tax season approaches, many Canadians miss out on valuable deductions that could significantly reduce their tax bill. To help you avoid this common pitfall, here are the top 10 tax deductions often overlooked by Canadian taxpayers.
Medical Expenses: Claim a wide range of eligible medical expenses, including prescriptions, dental care, and even certain travel costs for medical treatments.
Moving Expenses: If you relocated for work, you could claim moving expenses, including transportation, storage, and temporary lodging costs.
Home Office Expenses: With more people working from home, many can claim a portion of home office expenses, such as utilities and internet.
Student Loan Interest: Interest paid on student loans is deductible, providing relief for recent graduates.
Union Dues and Professional Fees: Membership dues for unions and professional organizations are deductible.
Childcare Expenses: Expenses for daycare, nannies, and after-school programs can be claimed.
Charitable Donations: Donations to registered charities can yield significant tax credits.
Public Transit Passes: Some transit passes may qualify for deductions, encouraging eco-friendly commuting.
RRSP Contributions: Contributions to a Registered Retirement Savings Plan (RRSP) are tax-deductible, helping you save for retirement while reducing taxable income.
Self-Employment Expenses: Freelancers and business owners can deduct a range of expenses, including office supplies, travel, and advertising.
Maximizing these deductions requires careful record-keeping and awareness of eligibility criteria. By taking full advantage of these often-missed deductions, you can optimize your tax return and potentially receive a larger refund.
