Everybody wants to save money, especially at tax time. Despite our best efforts, a lot of potential savings slip through the cracks. Sometimes, it’s just because we don’t know what we can or can’t write off to make the most of our tax return. Keeping track of all the possible deductions isn’t easy, but knowing what to look for can really pay off. Today, we’re highlighting five often overlooked tax deductions that many people fail to take advantage of. These tips could help you keep more money in your pocket and make this tax season a bit brighter.
Medical Expenses Beyond the Pharmacy
Did you know that your trips to the doctor or hospital might be worth more than you think come tax time? Apart from the usual prescriptions and dental treatments, if you’ve traveled over 40 kilometers for medical treatment, those travel expenses could be deductible. This includes the cost of gas, public transit, and even accommodations if you needed to stay overnight. It’s a part of your health care costs that many overlook, but it can add up to significant savings.
The True Value of Giving Back
Charitable donations do more than just make us feel good; they can also benefit our wallets during tax season. It’s not just the big donations that count. Those small amounts you’ve been giving throughout the year? Keep those receipts. Whether it’s $20 here or $50 there, these donations can accumulate into a sizable deduction. It’s an easy miss but remember, every little bit helps when you’re trying to reduce your taxable income.
Energy-Efficient Home Upgrades
Thinking about making your home a bit greener? The Canada Greener Homes Grant is here to help, not just with the upfront costs but also come tax time. Upgrades like installing energy-efficient windows, doors, or insulation aren’t just good for the planet—they’re good for your tax return, too. Keep all your receipts for these improvements; they could be more valuable than you think.
Childcare Expenses: More Than Just Daycare
For parents, the cost of childcare is a significant expense, and thankfully, it’s one that can be deducted. But did you know it’s not just daycare that qualifies? Expenses for summer camps, after-school programs, and even certain sports activities can lower your taxable income. This broad category is often underutilized, so make sure to claim all that apply to maximize your return.
Home Office Deductions for the Remote Worker
With more Canadians working from home, it’s important to remember that a portion of your home office expenses can be deductible. This includes part of your utilities, home insurance, and even maintenance costs. If you’ve set up a workspace at home, don’t overlook this opportunity to claim what you’re entitled to.
Staying informed about these deductions can make a significant difference in your tax return. It’s all about knowing where to look and what to claim. With these tips, you’re better equipped to navigate this tax season and potentially increase your refund. Remember, it’s your money—make sure you’re keeping as much of it as you can!
