Filing taxes in Canada can feel a little overwhelming, but knowing about the different tax credits and deductions can make a big difference.

Here’s a friendly rundown of the top credits and deductions you should know about:

Tax Credits Everyone Should know

1. Basic Personal Amount (BPA)

Let’s start with the Basic Personal Amount. This is a tax credit that lets most Canadians earn a certain amount without paying any income tax on it.

For 2024, it’s $15,750, with net income of $173,205 or less for the year and it goes up a bit every year with inflation. The good news is that most tax software like Turbo Tax, or the software your Tax Accountant uses, has this applied automatically. But for those who still file manually with paper forms mailed in may be missing out.

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2. Canada Workers Benefit (CWB)

If you have a low income, the Canada Workers Benefit could be a lifesaver. It’s a refundable tax credit aimed at giving extra support to individuals and families who are working but have a low income. How much you get depends on your income and family situation, but it’s definitely worth checking out.

Here's more information on CWB

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3. RRSP Contributions

Planning for retirement? Contributing to your RRSP (Registered Retirement Savings Plan) is a great way to save and lower your taxes. You can contribute up to 18% of your previous year’s income, up to a maximum limit that changes annually.

An example is if you made $80,000 this year, and contributed $5,000 to your RRSP, the government will only tax you on $75,000 ($80,000 - $5,000). This can represent a huge saving for some families, especially if someone and their spouse takes advantage of this.

The bonus, if you contribute to your RRSP, and hopefully this money is invested and grows over time. The other benefit is the tax break. There's no reason NOT to if you can.

Bonus: if you don’t use all your contribution room, it carries forward and you never lose it until age 71.

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4. Home Buyers’ Amount

Bought your first home? Congrats! You can claim up to $10,000 for your purchase. That means up to $1,500 in tax savings. It’s a great way to celebrate becoming a homeowner.

It includes purchasing an existing home, and homes that are under construction for a future move in date.

You may be eligible for even more if you have a qualifying disability.

Here is some more information on the Home Buyer's Amount

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5. Medical Expense Tax Credit (METC)

If you’ve had some big medical bills, you might be able to claim them. This credit covers eligible medical expenses that go over $2,635 or 3% of your net income, whichever is less.

Things like prescriptions, dental work, and even travel for medical care could count.

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6. Tuition and Education Credits

Students, this one’s for you. If you paid tuition fees to an eligible school, you can claim them. While the federal education and textbook credits are gone, some provinces still offer them.

Plus, if you don’t use all your credits, you can carry them forward or transfer them to a family member, like your parents, because they are probably the ones who paid the school bills.

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7. Disability Tax Credit (DTC)

If you or someone you support has a disability, the Disability Tax Credit can help. It’s a non-refundable credit for people with severe and prolonged impairments, as certified by a medical practitioner.

It’s definitely worth exploring if it applies to you.

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8. Child Care Expense Deduction

Parents, take note! If you paid for daycare, nannies, or even day camps so you could work, go to school, or conduct research, you can claim those expenses.

The amount you can claim depends on your child’s age and can be increased if they have any disabilities.

Here's more information on Child Care Expense Deduction

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9. Climate Action Incentive (CAI)

If you live in a province with the federal carbon tax (like Ontario, Manitoba, Saskatchewan, or Alberta), you can claim the Climate Action Incentive. It’s a refundable credit designed to offset carbon pricing costs.

Just claim it on your tax return.

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10. Home Accessibility Tax Credit (HATC)

Made renovations to make your home more accessible for a senior or someone with a disability? You can claim up to $20,000 in eligible expenses, which translates to a credit of up to $3,000.

That’s a nice bonus for improving your space.

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11. Moving Expenses

If you moved at least 40 kilometers closer to a new job, business location, or school, you might be able to deduct moving costs.

Things like transportation, storage, and even temporary housing could qualify.

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12. Union and Professional Dues

Paying union or professional dues? You can deduct these amounts. Check your T4 slip or ask your organization for the details.

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13. Volunteer Firefighters and Search and Rescue Volunteers Credit

If you’ve volunteered 200 hours or more in these important roles, you can claim a $3,000 non-refundable tax credit. It’s a nice way to recognize your service.

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Quick Tips to Maximize Your Tax Savings

• Keep Your Receipts: Save all your receipts and documents for eligible expenses—you’ll need them if the CRA asks for proof.
• Use Tax Software: Most tax software will find credits and deductions for you, so you don’t miss out.
• Ask for Help: A tax professional can help you uncover credits and deductions you might not know about.
• Plan Ahead: Contribute to your RRSP before the deadline and explore income-splitting strategies to save even more.

Knowing about these tax credits and deductions can make tax season a lot less stressful.

Take advantage of these opportunities to keep more money in your pocket!