Tax time is in full swing here in Canada, and that means that it’s time to organize paperwork and start filling out forms to ensure the maximum possible refund, or the minimum possible payment! This year I’ll be using TurboTax to help me file online and I’m so excited to finally see for myself how quick and easy filing online can be. Since TurboTax offers both an accurate calculations guarantee and a maximum refund guarantee, I know that there’s no risk of having to pay a penalty or miss out on potential savings.
If you’re starting to organize your paperwork for tax time, there are a few often-missed Canadian tax deductions that you should make sure to consider as well. After all, even small amounts saved can help lower the impact of tax season…or make that refund cheque even bigger! These four tax deductions are among the top ones missed by Canadians when filing taxes:
Medical Expenses
Since Canada provides basic healthcare coverage to its citizens, medical expenses aren’t something often claimed by families. But other out-of-pocket medical expenses can really add up during the year. Dental appointments, medical prescriptions and travel medical insurance can all be claimed as medical expenses. So can hearing aid batteries, healthcare premiums paid to an employer’s healthcare plan and travel expenses incurred to obtain medical services.
Charitable Donations
Most people know that donations to registered Canadian charities can be claimed as a non-refundable tax credit. But many people don’t take the time to maximize the benefits of that tax credit. For example, spouses can combine their donations to take advantage of the higher tax credit rate. Previous donations that aren’t needed in lower income years can also be carried forward to future years to maximize the benefits of the credit. A little planning can result in much bigger savings when claiming charitable donations.
Eligible Dependant Credit
Whether you have an elderly parent living with you or you’re a single parent supporting your children, the Eligible Dependant Credit provides a significant tax credit benefit. Just as with the spousal tax credit, any income the eligible dependant earns is deducted from the amount of this credit. In the case of a retired parent or a child, the savings are still usually very significant. Note that a single parent with more than one child can only claim the eligible dependant credit once.
Self Employment Expenses
There are plenty of business expenses for a self-employed individual and finding the maximum amount of deductions just makes sense for anyone that’s running their own business. If you work out of your home, make sure to claim the appropriate portion of your house expenses as a business deduction. A percentage of your mortgage interest, property tax and utilities can all be claimed. Vehicle expenses can also be claimed when travelling for work. Office supplies, advertising expenses, memberships, salaries and meals are all partially or fully deductible as well.
I have to admit that last year, when I filed on paper the old-fashioned way, I missed a very important deduction. As a single parent, I was entitled to claim one of my children as an eligible dependant; a much higher tax deduction than the child deduction I claimed instead. What irks most is knowing that TurboTax would have caught that mistake when I filed and saved me money when the time came to pay! At least I won’t have to worry about the same thing happening this year.
For more great tax tips and information, make sure to check out the TurboTax blog. And if you want to see for yourself how quick and easy it is to file with TurboTax, head over to the website and try it risk-free! You can prepare your entire return online, then pay at the end when you’re satisfied with the results and ready to file. A simple return is often completed in as little as thirty minutes! Grab your receipts and tax paperwork, pour yourself a cup of coffee and get ready to tackle your tax return this year. With free live advice and an easy-to-use format, it’s enough to make you say goodbye to filing on paper forever!
Suzie M says
I always take advantage of the charitable donations deductuion
Sandra S says
I make sure to take advantage of the Self Employment Expenses
HeleneP says
I did some self-employed work this year so the expense deductions are something I would definitely need help with! Thanks for the chance to win!
Dayna Wilson says
Medical expenses. I have hypothyroidism and a permanent prescription…it’s prety cheap, but every penny back helps!
Jennifer P. says
For me it will be the Charitable Donations!
Jenness M says
I charitable donation deduction will come in handy this year.
heidi c. says
Charitable donations will definitely be helpful this year.
Barb W says
We’ll be claiming charitable donations!
Jodi Mitrovic says
The medical expenses will come in handy for me this year. Our company just began charging a healthcare premium. Good to know! Thank-you!
Lee-Ann S says
Charitable donations!
Debbie F says
Medical expenses
Michelle k says
For me the main one is the eligible dependent credit but the medical expenses and charitable contributions will also be claimed.
Rosanne Robinson says
We will be claiming the Medical expenses & Charitable contributions
Victoria Ess says
Medical expenses and charitable contributions will be something I will deduct.
Lori JB says
I benefit from all four of these tax deductions! I have been using Turbo Tax for the past 4 years and love it. I do tax returns for other people as well and I feel confident that I am not missing anything for them when using Turbo Tax.
melissa m says
Charitable donations is on e i will remember to do this year!
Sherry K says
The Eligible Dependant deduction is one I will use.
Melanie B says
Medical expenses!
Brenda Lacourciere says
I find Charitable Donations will be useful for us this year.
nicolthepickle says
The Charitable Donations Credit. I did know about it already though. 🙂
Josie says
Charitable donations
Stephanie LaPlante says
Most definitely Medical Expenses.
kristine ewald says
charitable donations
Susan P. says
Medical Expenses are a deduction that we must use – thanks!
Chandra Christine O'Connor says
charitable donations
holly o'gorman says
Self employment expenses as well as the Eligible Dependent Credit.
Andrew P says
Charitable Donations
isha says
chariitable donations, self employment and medical expenses
Maggie C says
I never knew about the “Medical Expenses” one especially where I pay for travel insurance! Thank you!
Stacy Scott says
charitable donations deductuion
Sara Lima says
Medical expenses for sure, I never remember to claim those.
andrea amy says
the eligible dependent 🙂
Sarah Stickney says
the medical expenses one is good to know
Debbie W says
Hubby would benefit from the self employment
Lesley e says
The medical expenses- that’s really handy to know!
Elaine Buonsante says
I pay medical premiums myself and I wonder if they are deductible.
Amy C says
The Medical Expenses one
Sandy Klocinski says
Actually, none of them benefits me. We are retired and most of our income comes from social security so we wind up not paying taxes even using the standard deduction
sandra says
the charitable deduction.
SCOTT H says
Charitable deduction
leanne says
The Self Employment Expenses might help me.
Kim says
The medical expenses is one that I used to overlook…not any more! With 3 kids it can make quite a difference!
Athena says
charitable donations
aarone mawdsley says
medical expenses and educational expenses would help me out a great deal.
Kristen says
Charitable donations. All the rest too!
rebecca g says
Eligible Dependant Credit. I am a new mom, so this would really come in handy
Nicole Jubleew says
The medical deductions will come in handy this year.
Florence C says
The medical deductions and the charitable donations.
Erika says
Medical expenses!
Marlene V. (Enelram) says
Medical Expenses