Canadian Personal Income Tax

Sometimes if you have someone else file your taxes they may not know your exact situation and you could be missing out on tax deductions that would mean a bigger refund in your pocket. For the average person filing your own taxes using a software program is easy to do and will save you money! Just make sure you know about all the possible tax credits and deductions available to you and keep your receipts throughout the year as the government may want to see them. Below are some of the common deductions people can make.

Some common tax deductions that people can use to help get a refund are as follows.
- Medical expenses
- Moving expenses
- Donations
- Mechanics tools deductions
- Apprentice tool credit - in some provinces
- Investment carrying costs

When claiming medical expenses on your tax return you may be able to claim more than just the medical expense itself. Make sure to check with CRA to determine if you may be eligible to claim the mileage it took to drive to the appointment as well as a meal. There are set rates per KM and per meal so you don't have to have your receipts, but you will have had to travel a minimum amount of kms to be able to claim the extra expenses. If you are seeing a specialist and have to stay over night you may also be able to claim your hotel costs in medical expenses as well.

Look on CRA's website for the prescribed rates for your province as well as the requirements needed to be allowed to make the extra claim.

When you move for work you can be eligible to claim all kinds of expenses.

Some examples are;
1. The cost of the moving company you use
2. The cost of fuel or truck rental if you move yourself
3. The lawyer fees associated with selling and buying a new house
4. The realitor fees that you pay when selling your house
5. Hotel costs incurred while moving from one place to another
6. Storage costs if they are incurred during the move

For additional moving deductions please view the indepth information on CRA's website for moving costs.

So when moving make sure that you keep track of your dates and expenses. For these expenses you will also want to keep your receipts as it is an area that is popular for CRA to audit.

So when you give to a political party or your favorite charity that donation can get you a credit to help give you a little refund. So make sure you give often and get receipts.

Just a note a charity lottery where you are receiving a chance at a prize is not considered a donation just because you didn't win anything. So do not try to claim charity lottery tickets as donations, as if you are audited these will not be allowed.

This one is great for those hard working mechanics as it allows them to get a credit for the tools that they purchased during the year. Their is a formula that will be built into the tax software tools to calculate is so all you need is a list of tools that you purchased and your receipts.

Also for this one you will likely need a form from your employer saying that you are required to purchase the tools and that you are not reimbursed for the tools through work. This form can be found on CRA's website and printed off.

This credit is excellent for the mechanic who is just starting out as there are a lot of specialized tools that are needed to make sure they get the job done right!

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