Top Tax Credits and Deductions Canadians Overlook

Image Source: iStock | Top Tax Credits and Deductions Canadians Overlook

When tax season rolls around, many Canadians focus on the basics, filing on time, reporting income, and claiming the obvious deductions like RRSP contributions or childcare expenses. But beyond the usual claims, there are dozens of tax credits and deductions that can put real money back in your pocket, if you know about them.

The truth is, every year Canadians leave hundreds of millions of dollars unclaimed because they simply don’t realize what they’re eligible for. Some credits are obscure, others are new, and a few are just overlooked in the scramble to meet the filing deadline.

This guide walks you through the top tax credits and deductions Canadians overlook, so you can maximize your return this year and keep more of your hard-earned money.

The top 10 Tax Credits and Deductions are:

1. The Canada Employment Amount

If you’re an employee earning income, you may qualify for the Canada Employment Amount, designed to help cover work-related costs like uniforms, supplies, and home office expenses.

• For 2025, the maximum claim is $1,487 (indexed annually).

• It’s automatically applied when you report employment income, yet many people don’t realize they’re getting it or how it works.

• While you don’t need receipts to claim this, it’s good practice to track work-related expenses in case additional deductions apply (like home office costs).

2. Medical Expense Tax Credit

Many Canadians know they can claim medical expenses, but they often underestimate what qualifies.

Eligible expenses include more than just prescriptions and dental care. You can claim:

• Travel expenses to get medical treatment (if services weren’t available nearby).

• Gluten-free food for those with celiac disease.

• Fertility treatments and related medical procedures.

• Air conditioning or home renovations required for medical conditions (with proper documentation).

• Premiums for private health insurance plans.

3. Moving Expenses

If you moved at least 40 kilometers closer to a new job, school, or business, you may claim moving expenses.

Qualifying expenses include:

• Transportation and storage of household items.

• Travel costs (including meals and lodging) during the move.

• Real estate fees and legal costs if you sold your old home.

• Utility hookups and temporary accommodation.

4. Student Loan Interest

Graduates often forget that the interest paid on eligible student loans is tax-deductible.

• You can claim interest paid in the year, or carry it forward for up to five years.

• Only loans under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or provincial equivalents qualify (private loans don’t).

This deduction doesn’t require receipts beyond loan statements, but it’s a valuable way to reduce your tax bill while repaying debt.

5. The Disability Tax Credit (DTC)

One of the most underused credits in Canada is the Disability Tax Credit.

• It’s available to individuals with a severe and prolonged impairment in physical or mental functions.

• A medical practitioner must complete Form T2201.

• The non-refundable credit can reduce your tax by thousands each year.

If you qualify, you may also unlock other benefits, like the Registered Disability Savings Plan (RDSP).

6. Home Buyers’ Amount

First-time homebuyers often forget about the Home Buyers’ Amount (HBA), worth up to $10,000 in 2025.

To qualify:

• You (or your spouse/common-law partner) must not have owned a home in the previous four years.

• The property must be your principal residence within one year of purchase.

This credit can save you up to $1,500 on your tax return. Combined with the Home Buyers’ Plan (HBP), which lets you withdraw from your RRSP to buy a home, it’s a valuable break for first-time buyers

7. Caregiver Credits

Caring for family members? You may qualify for:

• Canada Caregiver Credit (CCC): Available if you support a spouse, common-law partner, or dependent with a physical/mental impairment.

• Medical Expenses for Dependants: You can claim eligible expenses for family members who rely on you.

  
  

These credits can add up, especially if you’re juggling caregiving with work.

8. Union and Professional Dues

If you’re a member of a union or professional association, your dues are often tax-deductible.

• This includes licensing fees (for lawyers, accountants, realtors, etc.).

• Keep receipts from your organization, as these aren’t always tracked on T4 slips.

  
  

For many Canadians, these deductions reduce taxable income significantly.

9. Digital News Subscription Credit

A relatively new (and lesser-known) credit is the Digital News Subscription Tax Credit.

• You can claim up to $500 for eligible digital subscriptions from Canadian news outlets.

• The credit is non-refundable, but it supports independent journalism while cutting your tax bill.

10. Charitable Donations

Donating to registered charities not only supports good causes but also saves you money:

• The first $200 in donations gets a 15% credit.

• Anything above that earns you a 29% credit (33% if your income exceeds $250,000).

Final Thoughts

Taxes can be complicated, but they’re also an opportunity. By paying attention to the lesser-known credits and deductions, you can reduce your bill, increase your refund, and take full advantage of Canada’s tax system.

If you’re unsure about what you qualify for, consider speaking with a financial advisor or tax professional. Even one overlooked credit could mean hundreds—or thousands—back in your pocket.

At Contivos Financial, we help Canadians make sense of their finances, from tax planning to wealth management. The goal? Keeping more of your money where it belongs—with you.