Updated February 29, 2024
We prepare a lot of tax returns, so we have seen it all. Many forget or don’t even realize they may be eligible to claim tax deductions or credits. So here is our list of the top 10 most overlooked tax deductions and credits (in no particular order).
1. Ontario Staycation Tax Credit (2022 tax year only)
For non-business overnight stay in a hotel, motel, bed & breakfast, resort, cottage, vacation rental property or campground in Ontario between January 1 to December 21, 2022, you may be eligible to claim 20% of the accommodation to a maximum expense limit of $1,000 per individual or $2,000 as a family. This would result in a tax credit of up to $400.
More info: Ontario Staycation Tax Credit
2. First-Time Home Buyers’ Tax Credit
If you bought your first home in 2022, you can claim $10,000 that can provide a tax credit of up to $1,500. This amount can be split between spouses but the total amount cannot exceed $10,000.
More info: First-Time Home Buyers’ Tax Credit
3. Moving Expenses
If you moved more than 40 km for a new job or to run a business, you may deduct the cost of moving expenses that you paid out of pocket. Students are also eligible if they moved at least 40 km away to attend a full-time post-secondary program, but they can only deduct expenses against scholarships, bursaries, fellowships, and grants received. Eligible expenses include, transportation and storage, travel expenses (vehicle, meals, accommodation), temporary living expenses, cost of canceling lease, and incidental expenses.
For a list of eligible expenses and more information: Moving Expenses
4. Home office expenses
If you worked from home in 2023, the simplified method of claiming home expenses is no longer available. The only option is the detailed method, which uses actual eligible expenses, and the percentage of the home’s area used for a home office. You also will need a signed copy of the T2200 from your employer.
If you worked from home in 2022 due to the COVID-19 pandemic, you can claim for home office expenses. You can elect to calculate this in one of two ways: 1) Simplified temporary flat method which is $2.00 per day worked to a maximum of $500 or 2) Detailed method which uses the actual amounts paid and requires documentation to back up expenses.
More info including a list of eligible home office expenses: Home Office Expenses
5. Medical Expenses Tax Credit
If you paid out of pocket for medical expenses including prescriptions, prescription glasses and contacts, private healthcare premiums, medical devices, etc. you may be eligible to claim a tax credit. Recently added are the costs to an individual receiving treatment to conceive a child such as in vitro fertilization.
For a list of eligible expenses and more information: Medical Expenses Tax Credit
6. Canada Caregiver Credit
If you support your spouse or dependents with a physical or mental impairment, you may be eligible for a tax credit between $2,350 and $7,525, depending on the dependent. Dependents must rely on you regularly and consistently for some or all of the basic necessities of life, such as food, shelter and clothing
More info: Canada Caregiver Credit
7. Interest paid on student loans
Interest can be claimed on student loans for the preceding 5 years for post-secondary education. However, the loan must fall under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial programs. Interest paid on personal loans or lines of credit, even though it was used to pay for post-secondary tuition are not eligible.
More info: Interest Paid on Student Loans
8. Digital News Subscription Tax Credit
If you subscribe to a paid Canadian digital news subscription service that is on the list of qualified Canadian journalism organizations, you may receive a 15% tax credit to a maximum of $75 on eligible digital subscriptions (up to $500).
For a list of qualifying digital news subscriptions and more information: Digital News Subscription Tax Credit
9. Adoption Tax Credit
If you adopted a child under 18 years of age, you may be eligible to claim adoption expenses. For the 2022 tax year, the maximum amount that can be claimed per child is $17,131. Eligible expenses include fees paid to a licensed adoption agency, legal fees, travel and living expenses, and immigration fees.
For a list of eligible expenses and more information: Adoption Tax Credit
10. Foreign Tax Credit
If you hold foreign investments where taxes are withheld, you may be eligible to claim a credit so you don’t end up paying taxes twice on the same income. Foreign income and taxes must be converted to Canadian dollars. Tax treaties with other countries may affect eligibility.
More info: Foreign Tax Credit
There are many tax deductions and credits, and we understand that it can be confusing and intimidating. Our personal tax organizer is helpful as we’ve included all the tax credits and deductions so that nothing gets missed. Contact us to learn more about our tax preparation services.
