As tax season approaches, the thought of sorting through receipts and filling out forms can be overwhelming. It’s easy to miss out on credits and deductions that you may be eligible for, leaving money on the table.
In Canada, there are several expenses and credits that many taxpayers overlook. In this blog, we’ll highlight four lesser-known tax claims that could potentially boost your refund or lower your tax liability. Whether you’re a seasoned taxpayer or a first-time filer, don’t miss out on the benefits you’re entitled to.
Here are four of the most common claims the average Canadian should be aware of.
1) Moving expenses
Have you moved to a new city for work or school recently? You may be able to claim the expenses you paid as part of the move.
Generally, you can claim moving expenses you paid in the year if you:
- moved to work or to run a business at a new location
- moved to attend a post-secondary institution as a full-time student
- moved at least 40 kilometres closer to your new place of work or school
Moving expenses you can claim in Canada include:
- Transportation and storage costs such as movers, moving vans and associated insurance
- Travel expenses such as fuel, meals and accommodation
- Temporary living expenses for up to 15 days
- Cost of cancelling your previous lease
- Replacing your ID/driver’s license if moving to a new province
- Utility hookups at your new residence
How to claim
Complete Form T1-M, Moving Expenses Deduction, to calculate your moving expenses and then claim that amount on Line 21900 of your return. You do not need to submit Form T1-M, but should keep a copy in case your returns are reviewed at a later date.
Learn more about claiming moving expenses.
2) Medical expenses
Medical expenses can really add up, especially if your insurance doesn’t cover them all. The good news is that you may be able to claim some medical expenses on your tax return, which can help reduce your tax liability or increase your refund.
While some expenses will require a prescription to claim, many do not. You will need to keep your receipts for each expense—while you don’t have to submit them with your return, you may be asked for them later during a CRA review.
Common medical expenses you can claim on your tax return in Canada include:
- Crutches, braces for a limb and walking casts
- Dental services
- Dentures and dental implants
- Eyeglasses and contact lenses
- Hearing aids
- Medical tests
For a full list of medical expenses you can claim, see the Canada Revenue Agency website.
How to claim
Claim your total eligible expenses on line 33099 (medical expenses for self, spouse or common-law partner, and your dependent children under 18) or line 33199 (allowable amount of medical expenses for other dependents).
Full details on calculating and claiming eligible medical expenses.
3) Work from home expenses
In the past few years, working from home part or full time has become more and more common among Canadians. If you worked from home for four or more consecutive weeks in the previous tax year, make sure you claim your expenses!
How to claim
The CRA provides two methods for claiming work from home expenses:
- Flat rate method
- Detailed method
The flat rate method allows you to claim $2 for each day you worked from home, up to a maximum of $500 in 2022. You can claim this way if you worked more than 50% of the time from home for at least four consecutive weeks in the year due to the COVID 19 pandemic. This is a temporary measure that was introduced for 2020, 2021 and 2022.
The detailed method allows you to claim the actual amounts you spent in order to work out of your home office, supported by documents.
You’ll also need to fill out form T777S or form T777 and get a completed and signed form T2200S or form T2200 from your employer, if claiming under the detailed method.
Full details on claiming work from home expenses.
4) Child care expenses
As any working parent can attest, child care expenses in Canada can really add up over time. Fortunately, you can claim some of those expenses during tax time and get some of that money back.
You can claim expenses for childcare you paid so you could:
- Attend your job
- Run a business
- Go to school
- Carry on research or similar work funded by a grant
How to claim
Complete form T778, Child Care Expenses Deduction for 2022, to calculate your child care expenses. You can then enter that number on line 21400 of your return. You do not need to submit form T778 with your return, but hold onto it in case the CRA asks for it during a review of your returns.
Full details on claiming child care expenses.
Never miss an opportunity to claim again
The more you can claim, the more time consuming and complicated filing your return can get. Hiring a personal tax accountant to help you navigate your return can save you time, money and stress—making tax season a little less taxing!
RHN offers personal tax services for families and individuals looking for advice on what to claim and help completing the file.
Reach out anytime—we’re happy to chat about whether we’re a fit for your needs!