1. What are some of the most overlooked tax deductions?
Many Canadians miss out on valuable deductions simply because they don’t realize they qualify. Some of the top overlooked deductions include medical expenses, moving costs, and home office expenses.
2. Can I claim medical expenses even if I have insurance?
Yes. Any out-of-pocket medical expenses not covered by insurance—such as dental work, prescriptions, vision care, or certain travel costs for medical treatment—can be claimed if they exceed the CRA threshold.
3. Are charitable donations really worth claiming?
Absolutely. Even small donations add up. If you’ve donated to registered charities, you can claim a federal and provincial credit, and unused donations can be carried forward for up to five years.
4. What about RRSP contributions made in the first 60 days of the year?
Contributions made within the first 60 days of the calendar year can be applied to the previous tax year. Many people forget to include these, which could reduce their taxable income.
5. I moved for work or school—can I claim moving expenses?
If you moved at least 40 km closer to a new job or post-secondary institution, you may be able to deduct moving costs such as transportation, storage, and temporary living expenses.
6. How do childcare expenses qualify as deductions?
Daycare fees, day camps, babysitting (with receipts), and after-school programs can be claimed if they allowed you or your spouse to work, run a business, or attend school.
7. Can I claim interest paid on student loans?
Yes. If you have a government student loan, you may be eligible to claim the interest you paid during the year. You can also carry unused amounts forward for up to five years.
8. Do union or professional dues count?
Union dues, professional association fees, and certain work-related licensing fees are fully deductible if they’re required for your employment.
9. What about home office expenses?
If you work from home, you may be eligible to claim a portion of your utilities, rent, internet, and other home office expenses—either using the flat rate method or the detailed method with receipts.
10. Can investment-related fees be deducted?
Some investment expenses, such as fees paid for certain income-generating accounts, can be deducted. Always keep your T3 and T5 slips to support these claims.
Maximize Your Refund
Tax rules change frequently, and every situation is unique. Working with Lightworks Bookkeeping Services ensures you don’t leave money on the table. We’ll help identify every deduction you’re entitled to and make tax season stress-free.
