Everyone wants to get tax season over with. You gather your slips, fill in the numbers, and hope for the best. But many Canadians forego deductions. These easy-to-overlook and all too common deductions can truly save you real money. Here are five common deductions that you might routinely be skipping come tax time.
1. Medical expenses you can claim
Most people are surprised to learn that the health costs you can claim are not limited to prescriptions and dental visits. You can also claim travel for medical care, insurance premiums, and some medical supplies. These small costs can add up over the year, reducing your taxable income. A qualified personal tax accountant can help figure out what you can claim.
2. Work-from-home expenses
Freelancers can also face the problem of tax deductions. If you work from home, you can claim a part of your internet bill, your electricity costs, and even rent. The flat rate method is simple. But you may save even more by keeping detailed records of your expenses and receipts. If you live in the GTA, talking to an Oakville personal tax specialist could help you figure out the best method.
3. Tuition and education credits
You can take advantage of this opportunity for your education. You can claim tuition payments, and students can transfer unused credits to a parent or spousal account. Education can be costly. These tax credits can help you.
4. Moving expenses for work or school
If your new job or school is more than 40 kilometres away from your current location, you can claim some relocation expenses. If you do not know about the distance rule, you will miss out on this deduction. But if you do meet the distance criteria, you can earn significant tax savings.
5. Charitable donations
Feeling charitable satisfies one’s peace of mind, and for tax filing, it’s also a claimable expense. Always donate to a registered charity. Make sure to keep your donation receipts. It would give more credits than you may expect. Furthermore, if you have made donations in prior years and did not claim them, you may still recover those credits for tax filing.
Why is missing these deductions important
Simplifying your business finances is possible and helps you keep more money. Getting the right professional accounting advice can help you achieve this.
Doing so will help you save more money from your taxes. Understanding your personal finances and what business expenses you can deduct is important. Having the right counsel can help you achieve this.
You cannot do it
Feeling like you are missing something important from your tax return is common. One of the reasons many people look for specialized help is that tax regulations are complex. In places like Oakville, personal tax services are more than number crunching. They help you understand your unique situation. They also provide the confidence that your return is right. That way, you’re not filing for the sake of it—you’re filing with peace of mind.
