Getting to know your 2021-2022 tax credits 

With tax season upon us, there is a long list of tax credits that you need to sift through. Between non-refundable and refundable tax credits, knowing which ones to use to maximize your refund can be a challenge. The first thing to do is always file your taxes on time, even if you have no income to report. By doing so, you’ll get the quarterly GST/HST pay outs without too much hassle. But for the rest of your potential deductions, here are some of the best tax credits you should investigate. 

Charitable Tax Credit 

If you made a monetary or property donation, you may be able to claim it on your taxes. You can claim all or part of the eligible amount, up to the limit of 75% of your net income. 

Working Expenses 

Whether you’re working from home, self-employed, or moved for a job, there’s a tax credit for you. Claim things like office supplies, phone bills, moving costs, banking fees, and more. Talk to a professional to see what you can get away with. 

RRSP Deductions 

Your RRSP contributions are used to reduce your net income for the year. As a result, you’ll be taxed for a smaller amount. Keep in mind, you don’t need to deduct all your RRSP contributions in the same year you made them. Just deduct the amount to reduce your main tax liability for the year and save the rest for next year.  

Various Property Tax Credits 

If you bought a home, have rental properties, or made disability related renovations, you can be eligible for some rebates. However, there are criteria, like having to be a first-time home buyer, or hold a disability tax certificate.  

Disability Tax Credit 

Speaking of disability tax credits, it’s designed to offset the extra living costs of having a disability. Similar to the Child Disability Benefit, you need to have a prolonged physical or mental impairment to qualify for the credit.

Child Care Expenses 

The Canada Child Benefit is meant to help families with the costs of raising children. Along with receiving tax-free monthly payments, you can also claim things like daycare and babysitters, or disability costs. The amount you can claim does change every year so keep that in mind when filling.  

Climate Action Tax Credits 

Depending on your province, you can apply for this climate tax credit to offset the cost of gas and heating. This can also offset the amount of carbon taxes you pay in your province. 

Medical and Caregiver Tax Credits 

Make a list of all your medical expenses throughout the year because they can all result in tax credits. Even dental visits might be eligible, as well as prescription glasses and disability related home renovations can be claimed. If you’re taking care of a loved one, the Canada Caregiver Credit can also be claimed depending on your situation.  

Educational Tax Credits 

If you’re paying tuition, you can most likely claim that as a tax credit unless it is already being reimbursed by an employer. Even after you’ve graduated, if you’re paying student loans, those can also be a deduction. 

Your Business. New Heights. 

Rise CPA provides professional accounting, tax and business advice to help you make the right decisions at the right time. Since 1979, we’ve been helping clients create businesses and lifestyles they envision by delivering expert insights and financial guidance. At Rise, we excel at advising business owners and their families in a caring and personal way. Our services cover a wide range of Tax Planning, Auditing, Accounting, Estate Planning, and Business Advisory. Please call (604) 936-4377 or use the online contact form to book an appointment with one of our accounting professionals.