As tax season comes in Canada, Canadians are preparing to gather records and determine the tax deductions and credits they can claim.
If you want a higher tax refund, you should minimize your taxable income and the taxes you owe to the government as much as feasible.
Tax exemptions and deductions in Canada
It is worth noting that the deadline for filing your taxes without paying penalties is April 30, 2024, and we will now give you with several tax exemptions and deductions to consider:
RRSP contributions
When you deduct your RRSP contributions, your net income is lowered, and you are taxed on less money. The deadline for making RRSP contributions for the 2023 tax year is February 29, 2024.
Claim transportation expenses
If you move more than 40 kilometers for a new job or school, you may be able to claim moving expenses if you relocate to work or run a business in a new area, or if you are a full-time student enrolled in a post-secondary program at a university.
Work from home or freelance
Employees who work from home may be eligible for the home office expense deduction, which does not have to be included in their employment contract and can be a written or informal arrangement.
Child care expenses
You can claim expenses for daycare centers, summer camps, and childcare providers such as nannies, but there are restrictions on who can claim these benefits.
Canada Child Benefit CCB
The Canada Child Payment is a tax-free monthly payment sent to qualifying families to help them cover the costs of parenting children under the age of 18. The Canada Child Payment may include the Child Disability Benefit and any other provincial programs.
To continue receiving your CCB, you must file your tax return on time each year, even if you are exempt from paying income taxes or have no income.
Home buyers amount
The homebuyer amount allows first-time or disabled homebuyers to claim a $10,000 non-refundable tax credit. The home qualified for the credit consists of the following: (Detached homes, semi-detached homes, houses, mobile homes, condominium apartments, duplex or triplex apartments, or quad or residential structures).
You can claim up to $5,000 to buy an eligible property in 2021, or sooner if you meet the requirements.
Tuition tax credit
Students are eligible for a tuition tax credit. This credit is available to students aged 16 and over who are enrolled in a higher education institution rather than a high school. To qualify, the tuition you paid at each educational institution must be greater than $100.
The official tax receipt or form from your educational institution reveals the amount of eligible tuition you paid for that calendar year, and the credit amount is determined by multiplying the tuition by 15% (the rate of the lowest federal tax bracket).
Multigenerational Home Renovation Tax Credit
The MHRTC Multi-Generation Home Renovation Tax Credit is a new, refundable tax credit that can be claimed on your 2023 income tax and return.
If you meet the requirements, you may be able to claim a credit for some remodeling costs associated with the creation of a self-contained secondary apartment. The claim must be for a senior citizen or adult who is eligible for the disability tax credit because they live with a qualifying relative. The tax credit equals 15% of the costs, with a maximum of $7,500 per claim. You are qualified. To submit.
Charitable donations
All donations to eligible charities can be deducted from your taxes if you have a donation receipt, which can be obtained at any time you donate. However, this donation is non-refundable, which means it will not contribute to an increased tax refund; however, it is a great way to reduce any taxes you owe, and you can claim donations made up to 5 years ago.
Claim medical expenses
Don't toss away receipts and prescriptions for dental checkups, insulin films, or gluten-free items because you have celiac disease; these are non-refundable tax credits that you might claim for medical expenses.
Worker benefits in Canada
The CWB distributes compensation to low-income workers and their families. You can receive advantages by filing your annual tax return. Individual taxpayers can receive a maximum of $1,428. Families may receive a maximum of $2,461, which may be lowered based on their income level.
Regional tax exemptions
In addition to these federal benefits, each province and territory has its own set of regional tax credits that might help you pay less tax or get a bigger refund.
