CRA Tax Credits, Deductions & Expenses That Could Help You Maximize Your Return In 2024
Navigating through tax season in Canada is by no means an easy feat, especially if you are filing your own income taxes through the Canada Revenue Agency.
For those who may need a little bit more guidance this tax season, we're outlining several tax credits, deductions and expenses worth looking into when filing your income taxes in 2024.
Not only is it worth verifying your eligibility but when you know which deductions, credits and expenses you can claim, you'll be able to reduce the amount of tax you need to pay. And who doesn't love saving money?
The Canada Revenue Agency (CRA) has outlined various tax credits and deductions that you may qualify for in sectors relating to family, childcare and caregivers, pension and savings plan, employment, education, disability and provincial and territorial.
Here are 11 credits, deductions and expenses outlined by the CRA to make filing your taxes this year slightly easier.
Canada Training Credit (CTC)
To claim the Canada Training Credit, you must complete Schedule 11 for the following:
- Eligible tuition fees and other fees paid to an eligible educational institution in Canada for courses you took in 2023
- Fees paid to certain bodies in respect of an occupational, trade or professional examination taken in 2023
- You were resident in Canada for all of 2023
- You were at least 26 years of age and less than 66 years of age at the end of the year
- You have a Canada training credit limit (CTCL) for 2023 on your latest notice of assessment or reassessment for 2022
Canada Workers Benefit (CWB)
The Canada Workers Benefit (CWB) is a refundable tax credit designed to provide additional support to low-income workers. It consists of two components: a basic amount and a disability supplement, the CRA said.
To determine your eligibility for the CWB, refer to Schedule 6, Canada Workers Benefit.
In cases where there is an eligible spouse, the choice of who claims the basic amount for the CWB is flexible, regardless of who received the RC210 slip for this amount.
However, if there is an eligible dependant, only one individual can claim the basic CWB for that dependant.
If there's uncertainty about who should claim the basic CWB when there's an eligible spouse or dependant, the Canada Revenue Agency (CRA) will decide.
If one spouse is eligible for the Disability Tax Credit (DTC), they should claim both the basic CWB and the CWB disability supplement if applicable.
In situations where both spouses are eligible for the DTC, only one can claim the basic CWB. However, each spouse must claim the CWB disability supplement separately on Schedule 6.
Donations & Gifts
According to the CRA, when you or your spouse/common-law partner make a charitable donation to qualifying institutions, you may qualify for federal and provincial/territorial non-refundable tax credits upon filing your income tax and benefit return.
Typically, you can claim a portion or the entirety of the eligible donation amount, up to a maximum of 75% of your net income for the tax year.
If you need details regarding a donation made in a prior year, you will require the corresponding version of Guide P113, "Gifts and Income Tax," for the year in which the donation was made.
Interest Paid On Student Loans
You may qualify to claim an amount for the interest paid on your student loan for post-secondary education if it was obtained under the following acts:
- Canada Student Loans Act
- Canada Student Financial Assistance Act
- Apprentice Loans Act
- Provincial or territorial government laws are similar to the aforementioned acts.
Only you, or a person related to you, can claim the interest paid on the loan within the tax year 2023 or the preceding 5 years.
You are eligible to claim the interest amount that you have not previously claimed. If you have no tax payable for the year in which the interest was paid, it's advisable not to claim it on your return. Instead, you can carry the interest forward and apply it to your return for any of the next 5 years. Enter the eligible interest paid on your student loans on line 31900 of your return.
Additionally, remember to claim the corresponding provincial or territorial non-refundable tax credit on line 58520 of your provincial or territorial Form 428.
Canada Caregiver Amount
The Canada Caregiver Credit (CCC) is a non-refundable tax credit designed to assist individuals supporting a spouse, common-law partner, or dependent with a physical or mental impairment, per the CRA.
You may qualify for the CCC if you provide support to:
- Your spouse or common-law partner with a physical or mental impairment.
- Dependents such as children, grandchildren, parents, grandparents, siblings, uncles, aunts, nieces, or nephews residing in Canada, who rely on you for regular and consistent provision of basic necessities like food, shelter, and clothing.
The amount you can claim varies based on your relationship to the individual, your circumstances, their net income, and whether other credits are being claimed for them.
For your spouse or common-law partner, you may claim up to $2,499 on line 30300 and up to $7,999 on line 30425.
For eligible dependents aged 18 or older (listed on line 30400), you may claim up to $2,499 on line 30400 and up to $7,999 on line 30425.
For eligible dependents under 18 (also listed on line 30400), you may claim up to $2,499 on line 30400 or on line 30500 for your child.
For each of your or your spouse’s/common-law partner’s children under 18, you may claim up to $2,499 on line 30500.
For other dependents 18 or older not covered under line 30300 or 30400, you may claim up to $7,999 on line 30450.
Disability Tax Credit (DTC)
The Disability Tax Credit (DTC) is a non-refundable tax credit intended to assist individuals with disabilities, or their supporting family members, in reducing their income tax obligations.
To qualify for the credit, individuals must have a severe and prolonged impairment. Upon approval, they can then claim the credit when filing their taxes.
The DTC serves to alleviate some of the additional expenses associated with the impairment by reducing the individual's income tax liability.
Child Care Expenses
According to the Canada Revenue Agency, child care expenses refer to payments made by you or another party to secure care for an eligible child, enabling you to engage in income-earning activities, pursue education, or conduct research funded by a grant.
If you meet the eligibility criteria, you can deduct specific childcare expenses when filing your personal income tax return.
Moving Expenses
You are eligible to claim moving expenses paid during the year if you meet the following criteria:
- You relocated to a new residence either for work purposes, to establish a business in a new location, or to attend a post-secondary program as a full-time student at a university, college, or other educational institution.
- Your new residence must be a minimum of 40 kilometres closer, determined by the shortest public route, to your new work location or educational institution.
Multigenerational home renovation tax credit (MHRTC)
The Multi-Generational Housing Renovation Tax Credit is a recently introduced refundable tax credit designed for eligible individuals to offset specific renovation expenses aimed at establishing a secondary unit within an eligible residence, the CRA indicated.
This arrangement facilitates a qualifying individual to live with their qualifying relation.
Eligible claimants may seek reimbursement for up to $50,000 in qualifying renovation costs for each completed eligible renovation. The maximum credit per claim, for which an individual is eligible, is capped at $7,500.
Canadians should complete schedule 12 MHRTC, to calculate their credit and enter the result on line 45355 of your return.
First Home Savings Account Deduction (FHSA)
The First Home Savings Account is a new registered plan to help Canadians save for their first home. Any and all contributions to the FHSA are educational and can be used to reduce your tax, the Canada Revenue Agency said.
The contribution period for your FHSAs is the calendar year January to December. You cannot use any contributions that you made in 2024 as an FHSA deduction on your 2023 return.
Air Quality Improvement Tax Credit
If you were a member of a partnership in 2023, you can claim the amount of the credit in which was allocated to you by the partnership for its fiscal period ending in 2023.
Canadians can find the amount allocated to them in box 238 of your T5013 slip or in a letter provided to you by the partnership, the CRA said.
When filing your taxes, you should enter on line 47557 of your return the total amount allocated to you from all partnerships.
For the full list of all Canada Revenue Agency tax deductions, expenses and credits can visit here.
This article's cover image was used for illustrative purposes only.
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