Common Tax Deductions Cheat Sheet for Canadians

Maximize your tax savings by taking advantage of these common tax deductions available to Canadian taxpayers. Always consult with a tax professional to ensure eligibility and compliance with the Canada Revenue Agency (CRA) regulations.

1. Business Expenses (Self-Employed or Business Owners)

• Home Office Expenses: Deduct a portion of rent, utilities, internet, and maintenance costs if you work from home.
• Office Supplies: Pens, paper, printer ink, and other supplies used for business purposes.
• Travel Expenses: Airfare, lodging, meals, and transportation for business-related travel.
• Vehicle Expenses: Deduct mileage, gas, repairs, and maintenance for business use of your vehicle (keep a detailed log).
• Professional Fees: Fees paid to accountants, lawyers, or consultants for business purposes.
• Advertising and Marketing: Costs for promoting your business (e.g., website, social media ads).

2. Employment Expenses

• Home Office Expenses (Employees): If your employment contract requires you to work from home, you may deduct a portion of home office expenses.
• Vehicle Expenses: Deduct costs for using your vehicle for work-related purposes (if not reimbursed by your employer).
• Tools and Supplies: Deduct the cost of tools or supplies required for your job (e.g., tradespeople).
• Union Dues and Professional Memberships: Deduct dues paid to maintain professional memberships or union fees.

3. Medical Expenses

• Medical and Dental Costs: Deduct eligible medical expenses, including prescription drugs, dental care, and vision care, exceeding 3% of your net income or a set threshold.
• Health Premiums: Premiums paid for private health insurance plans.
• Medical Travel: Deduct travel costs for medical treatment if the nearest facility is at least 40 km away.

4. Charitable Donations

• Cash Donations: Donations to registered charities (keep receipts).
• Non-Cash Donations: Clothing, household items, or securities donated to charity.
• First-Time Donor’s Super Credit: An additional credit for first-time donors.

5. Education and Training

• Tuition Fees: Deduct tuition fees paid to post-secondary institutions.
• Student Loan Interest: Deduct interest paid on government student loans.
• Moving Expenses: Deduct moving costs if you relocate at least 40 km closer to a new job or school.

6. Child and Family Benefits

• Childcare Expenses: Deduct childcare costs (e.g., daycare, babysitting) to enable you or your spouse to work or study.
• Canada Child Benefit (CCB): A tax-free monthly payment for eligible families (not a deduction but a benefit).
• Adoption Expenses: Deduct costs related to adopting a child.

7. Homeownership and Rental Expenses

• Home Buyers’ Amount: A tax credit for first-time homebuyers.
• Rental Expenses: Deduct expenses for renting out a property (e.g., mortgage interest, repairs, property taxes).
• Home Accessibility Tax Credit: A credit for home renovations to improve accessibility for seniors or persons with disabilities.

8. Retirement Savings

• RRSP Contributions: Contributions to a Registered Retirement Savings Plan (RRSP) are tax-deductible.
• Pension Income Splitting: Split eligible pension income with your spouse to reduce your overall tax burden.

9. Investment Expenses

• Interest on Borrowed Money: Deduct interest paid on money borrowed to invest in income-producing assets.
• Safety Deposit Box Fees: Fees for storing investment documents.

10. Miscellaneous Deductions

• Moving Expenses: Deduct costs for moving at least 40 km closer to a new job or school.
• Disability Supports Deduction: Deduct costs for disability-related equipment or services (e.g., hearing aids, sign language interpretation).
• Northern Residents Deductions: Deduct living expenses if you live in a prescribed northern zone.

Pro Tip:

Keep detailed records and receipts for all deductions. If you’re unsure about eligibility, consult with a tax professional to avoid errors or CRA audits.

Need Help?

At Jass Accounting and Tax Services, we’re here to help you navigate the complexities of Canadian tax deductions and maximize your savings. Contact us today for personalized tax advice!