Did you know there are several tax credits and deductions designed to ease your financial burden? Many taxpayers overlook these opportunities to reduce their taxes or increase their refunds. Let’s explore the top five credits and deductions you might be missing out on.
Canada Workers Benefit (CWB)
What It Is:
The Canada Workers Benefit is a refundable tax credit that provides financial relief for low-income workers.
Eligibility:
To qualify, you must earn income from employment or business and meet certain income thresholds. Both individuals and families can benefit from the CWB.
How to Claim:
You can claim the CWB on your tax return. The amount you receive depends on your income and family situation.
Medical Expense Deductions
What It Is:
You can claim eligible medical expenses that you or your dependents incurred in the tax year.
Eligibility:
Expenses must exceed the lesser of 3% of your net income or a set dollar amount ($2,479 for the 2023 tax year).
Examples of Eligible Expenses:
Prescription medications, dental care, vision care, and certain medical devices and treatments. Travel expenses for medical care may also be eligible.
Tuition and Education Credits
What It Is:
Students can claim tuition fees paid to eligible post-secondary institutions. Additionally, unused credits can be transferred to a spouse, parent, or grandparent.
Eligibility:
You must have received an official tax receipt (T2202A) from your educational institution.
How to Claim:
Report the amount on your tax return using the appropriate form (Schedule 11 for federal and provincial credits).
Home Accessibility Expenses
What It Is:
A tax credit for seniors and individuals with disabilities to help with the cost of home improvements that enhance accessibility.
Eligibility:
To qualify, expenses must be incurred to enable a qualifying individual to gain access to, or be mobile or functional within, their dwelling.
Examples of Eligible Expenses:
Installation of wheelchair ramps, walk-in bathtubs, and grab bars.
Climate Action Incentive (CAI)
What It Is:
A refundable tax credit for residents of provinces that do not have a carbon pricing system that meets the federal standard (e.g., Ontario, Manitoba, Saskatchewan, and Alberta).
Eligibility:
You must be a resident of one of the eligible provinces and file a tax return.
How to Claim:
The credit is claimed on your tax return and is designed to offset the cost of carbon pricing.
By understanding and claiming these credits and deductions, you can significantly reduce your tax burden and increase your refund. The Black Key is here to help you navigate these opportunities. Join our free courses and empower yourself with the knowledge to maximize your tax benefits.
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