Tax deductions

A complete list of tax deductions and credits for any scenario


Okay, I’ve heard of great attempts to infer things that are completely ineligible. I knew a guy who tried to claim his tattoo as a medical expense, and others tried to claim their dogs as dependents. Breast augmentation, cat food, helicopter tours, and boat cruises all list the deductions I’ve seen attempted. Today I want to share a complete checklist of legitimate deductions and credits for various people. To use this list, highlight all the deductions or credits you qualify for and those you are unsure of. Then confirm your eligibility by searching for these amounts on canada.ca. Good tax savings!

The basics

Before we share the list, there are a few things to explain. First, deductions are claimed against your income to arrive at your taxable income figure. Your taxable income is then multiplied by your tax rate to get your taxes owed. Credits are then claimed against your taxes owed, to reduce your tax bill in calculating your net taxes owed. Credits are either non-refundable (meaning they can reduce your taxes to zero, but can’t go any further) or refundable (meaning you can get a refund of the amount even if your net taxes are already zero. ).

Then when you read the word “spouse” below, I’m also referring to common-law partners, who are treated as spouses for tax purposes. Also, I am not talking about self-employment deductions today because it is a topic in its own right. Finally, I won’t go into more detail about the deductions or credits in this checklist today, but you can search for them at www.canada.ca for more information. Now for the list.

For everyone

Take advantage if they apply to you:

Deductions: Reimbursement of social benefits and deduction for residents of the North.

Non-refundable credits: The basic personal amount (enhanced for those with an income of $ 150,473 or less), the donation tax credit, the digital news subscription credit and the political contribution credit.

Refundable credits: the GST / HST credit and the climate action incentive.

For employees

Employees should take these amounts into account. (If you were reimbursed by your employer for these, you cannot claim them.)

Deductions: Annual union, professional or similar dues, moving costs, vehicle costs, travel costs, parking costs, supplies, home office costs (see my article of March 18, 2021, for more information), assistant salary , clergy residency deduction, stock option deduction, deduction for Canadian Forces personnel and police, accounting and legal fees, tools for tradespersons and apprentice mechanics, expenses of employed artists, related expenses musical instruments and additional expenses if incurred to earn commissions – including advertising, promotion, food and entertainment, equipment costs (cell phones, computers, etc.), office rent and training costs.

Non-refundable credits: the Canada employment amount, the EI premium credit, the volunteer firefighter amount and the search and rescue volunteer amount.

Refundable credits: Overpayment of Employment Insurance, Canada Workers Benefit, GST / HST Rebate for Employees or Partners, and School Supply Tax Credit for Educators.

For families and caregivers

These elements are relevant for families, children and caregivers:

Deductions: Child care costs, support payments and universal child care benefit reimbursements.

Non-refundable credits: the spouse or common-law partner amount, the amount for an eligible dependent, the Canada caregiver amount (for spouses, eligible dependents 18 years of age or older, or infirm dependents), adoption expenses, the amount for the purchase of a home and eligible medical expenses (for yourself, spouse or your dependents).

Refundable credits: the supplement for medical expenses.

For students and interns

If you are a student or have pursued further education, take these amounts into account.

Deductions: Moving expenses.

Non-refundable credits: tuition, education, textbook amounts, student loan interest credit, and tuition transferred from a child or spouse.

Refundable credits: the Canada training credit (see my article from March 25, 2021) and the GST / HST credit.

For the disabled

If you or a dependent has a disability, take these amounts into account.

Deductions: the disability support deduction.

Non-refundable credits: the disability amount (for yourself or transferred from a dependent), the Canada caregiver amount (for a spouse, an eligible dependent 18 years of age or older or other dependents with disability) and the Home Accessibility Fee Credit.

Refundable credits: the supplement for medical expenses.

For retirees

If you are retired or saving for retirement, consider these amounts.

Deductions: RPP deduction (registered pension plan), pension adjustment, RRSP deduction (registered retirement savings plan), PRPP deduction (pooled registered pension plan), pension amount deduction split and the deduction for enhanced CPP or QPP contributions.

Non-refundable credits: age amount, basic CPP or QPP contributions, pension income amount, and home accessibility expense credit.

Refundable credit: for CPP overpayments.

For investors

Investors should take these amounts into account.

Deductions: interest costs for investments, financial costs (investment management, custody, accounting and bookkeeping and tax preparation costs), net capital losses from other years, a deductible loss for ” a business investment, exploration or development expenses, limited partnership losses and the cumulative capital gains deduction.

Non-refundable credits: the dividend tax credit, foreign tax credits and the labor-sponsored funds credit.

Refundable credit: the investment tax credit.

Tim Cestnick, FCPA, FCA, CPA (IL), CFP, TEP, is author, co-founder and CEO of Our Family Office Inc. He can be contacted at [email protected].