Your browser is not supported. We do our best to optimize our websites to the most current web browsers. Please try another browser.

10 Canadian Tax Credits and Deductions You Don’t Want to Miss This Year

Tax items, such as a calculator and calendar and pencil, ready

It’s tax season in Canada! Although it isn’t exactly a joyful time of year for a lot of people, it can be a great time to actually save some cash – if you know where to look.

That’s why we broke down 10 tax credits and deductions that you need to know about this tax season. From school and work to charitable giving, you can get quite a few dollars back in your pocket and save on your tax bill. 

You may also like: Stressed about finances? Welcome to mindful money meditation

What’s the difference between a tax credit and a tax deduction?

First, let’s break down the differences between a tax credit and a tax deduction. The two are quite similar, so it can get a little confusing.

According to BNN Bloomberg, a tax deduction reduces the amount of your taxable income. So, if you made $50,000 in annual income and got a tax deduction of $1,000, you’ll only be taxed for $49,000 of your income. 

A tax credit, on the other hand, shaves money off the taxes you owe. For example, if you owe $1,000 in taxes, a tax credit of $300 means that you’ll only owe $800. 

One funny (OK, annoying) thing about tax credits: some are refundable, and some are non-refundable, according to NerdWallet. A refundable tax credit means that if your tax credit pays more than you owe, you get a refund. So, if you owe $1,000 in taxes, but you got $1,500 worth of refundable tax credits, the government will give you the remaining $500 in cash, AKA those amazing tax refunds that show up in your bank account every so often! 

However, a non-refundable tax credit will only reduce your tax bill. So, even if the tax credits add up to more than you owe in taxes, you will not receive that extra money back. For example, $1,500 in non-refundable tax credits for a $1,000 tax bill mean that you will not get that extra $500 in your bank account, but you will also not have to pay any taxes.

A woman writing on a piece of paper


10 tax credits and deductions to help you this tax season

Now that we’ve gone through the differences between a tax credit and a tax deduction, we can move on to all the amazing ways to save on your tax bill this year.

Tax credit and deductions for charitable giving

Being generous pays off! If you donated some money to help out your favourite cause, you can get a tax credit or deduction for the exact dollar amount. Just make sure to have the donation receipt available for your accountant to calculate. 

Related: Earthquakes devastated Turkey and Syria: 5 ways Canadians can help

Tax credit and deductions for self-employment

Girlbossing may be out, but getting that money that you made all by yourself is in. If you freelanced, side hustled or did anything else in the self-employment realm, you may be able to claim a tax deduction for business-related expenses (think: that bougie lunch you had with a prospective client). 

You may also like: The top 10 side hustles for Gen Z in 2023

A woman in a yellow sweater looking at her laptop

Tax credit and deductions for working from home

Working from home is here to stay – and the government is recognizing that. You can claim a tax deduction of up to $500 just for working from home expenses (which is up $100 from last year!). You may even be able to claim more with an employer-signed form. So, that ergonomic chair may have saved you money in the long-run.

You may also like: What you can and cannot claim from your work-from-home office

Tax credit and deductions for work-related expenses

Similar to the work from home tax deduction, you can get a tax credit (non-refundable) for any work-related expenses, thanks to the Canada Employment Amount. Did you buy a new uniform or computer for work this year? Claim ’em! Depending on your income, there is a max amount you can claim. Also, if you’re self-employed, this doesn’t apply to you (but talk to your accountant about your HST deductions).

Related: This is how to save money while working from home.


Tax credit and deductions for climate action incentive

Due to certain provinces increasing gas bills, you can now receive a refundable tax credit to offset this extra cost. Anyone in Alberta, Manitoba, Ontario or Saskatchewan can receive the Climate Action Incentive. If you live in BC, there is a similar tax credit called the BC Climate Action Tax Credit

Related: Top 20 places with the lowest taxes in Canada

A laptop in a woman's lap with a coffee beside her

Tax credit and deductions for medical expenses

Despite Canada’s universal healthcare, there are some expenses that aren’t covered by your provincial health provider. Those things, like dental health, eye health and even fertility treatments, may be able to get you a tax deduction. See if your medical expenses are covered.

See also: How Black women can advocate for themselves in a healthcare system that ignores them. 

Tax credit and deductions for tuition fees

Starving student no more: make sure to file your tuition payments on your taxes so you can receive the Tuition Tax Credit! Unless your employer or your parents’ employer is paying for your education, you can likely get a decent non-refundable tax credit for expanding your mind. 

Related: 10 most outrageous school tuitions celebs pay for.

Tax credit and deductions for student loan interest

If you’re now done with school, you may have some pesky student loans piling up. Thankfully, you can claim the interest on government-issued student loans as a non-refundable tax credit. However, if you have no taxable income this year, but still have interest on your student loans, the government recommends you wait until you file with income to claim that interest (you have up to five years to do this). 

You may also like: How to pay off student loans fast.

Tax credit and deductions for moving for work or school

Moving is the worst, and is also extremely expensive. Lucky for you, if you moved more than 40 km this year to start a new job, open up a new business or begin a new educational journey, you can get a tax deduction! You may need to provide proof of moving and not every situation applies, but check out more info on the Government of Canada website.

Related: Renters have rights: 3 things to know before you sign the lease – by province


Tax credit and deductions for occupational training

If you took any sort of educational course related to upleveling your career or taking a professional exam, you may be able to claim that as a refundable tax credit. There are a few requirements for this, including your age (26- to 66-year-olds only!). So check to see if this is for you.

You may also like: Back to school in your 20s, 30s and beyond? 10 reasons to hit the books again

Figuring out taxes can be complicated, but finding the right tax credits and deductions can save you in the long-term! Good luck this tax season. 

Latest News

This content is restricted to adults of legal age.
Please enter your birthdate to confirm.
Date of Birth