Tax season in Canada is officially here, and many Canadians are wondering how they can maximize their tax refund — or at least minimize their tax burden. With the Canada Revenue Agency (CRA) offering a variety of tax credits and deductions for the 2024 tax year, some of these benefits may go under the radar, even though they could make a big difference on your return.
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Whether you’re filing your taxes by yourself or working with a professional, understanding what you’re eligible for can be the key to lowering your taxable income and increasing your refund. The filing deadline for most individuals is April 30, so let’s dive into some of the key credits and deductions you may not be aware of that could help you save money this year.
1. Canada Employment Amount
If you were employed in 2024, whether full-time, part-time, or seasonal, you can claim the Canada Employment Amount. This is designed to cover some of the costs associated with having a job, like commuting and work-related clothing, even if you didn’t keep track of these expenses. Note that this credit is only available to employees and not to self-employed individuals.
What You Can Get: You can claim up to $1,433, or the amount equal to your employment income if it’s less than $1,433. This will reduce your taxable income.
How to Claim: Simply report your employment income on lines 10100 and 10400 of your return, and enter the lesser of your total income or $1,433 on line 31260.
2. Canada Workers Benefit (CWB)
The Canada Workers Benefit is a credit aimed at supporting low-income workers, whether single or with a family. It’s also available to those qualifying for the Disability Tax Credit. The CWB helps workers keep more of their earnings and is a refundable credit, meaning you can receive it even if you don’t owe any taxes.
What You Can Get: Up to $1,590 for single individuals or up to $2,739 for families, with additional amounts available for those eligible for the Disability Tax Credit. If you qualify, you could also receive advanced payments.
How to Claim: Claim the CWB through your tax software or by completing Schedule 6 on a paper return. Make sure you file before November 1 to receive advanced payments.
3. Home Office Expenses
If you worked from home in 2024 due to employer requirements, you could be eligible to claim home office expenses. This includes a portion of your rent, utilities, and internet costs, based on the space used for work. However, you must have paid these expenses yourself and have a signed Form T2200 from your employer.
What You Can Get: This deduction lowers your taxable income. You can claim a percentage of your rent, utilities, and repairs that correspond to the size of your workspace in relation to your home.
How to Claim: Submit Form T2200 signed by your employer and calculate eligible expenses on Form T777. The amount will go on line 22900 of your return.
4. Tuition, Education & Textbook Amounts
Students who paid tuition fees in 2024, whether for Canadian or international courses, can still claim the tuition tax credit, even though the education and textbook credits were eliminated in 2017. If you didn’t use credits from previous years, you can carry them forward.
What You Can Get: The tuition tax credit can reduce the amount of tax you owe, and you can transfer up to $5,000 of unused credits to a family member or carry them forward for future years.
How to Claim: Report your tuition fees using the T2202 or equivalent form on Schedule 11. Enter the total amount on line 32300 of your return.
5. Canada Training Credit (CTC)
The Canada Training Credit is designed to help you recover some of the costs associated with training or educational courses. If you’re between the ages of 26 and 65, you can claim this credit for eligible courses taken in 2024.
What You Can Get: Up to 50% of the tuition or course fees, up to your CTC limit for the year, with a lifetime cap of $5,000.
How to Claim: Report your CTC on line 45350 of your return. If you’re using tax software, it will guide you through the process.
6. Student Loan Interest
If you’ve been paying off your student loans, you may be able to claim a tax credit on the interest you paid in 2024. This applies only to loans from government programs like Canada Student Loans and provincial equivalents.
What You Can Get: A non-refundable credit that reduces the amount of tax you owe. You can also carry forward unused interest from the last five years.
How to Claim: Report the interest amount on lines 31900 (federal) and 58520 (provincial) of your tax return.
7. Home Buyers’ Amount
If you bought your first home in 2024, you may be eligible for the Home Buyers’ Amount, a non-refundable tax credit to help lower your tax bill.
What You Can Get: A $10,000 non-refundable credit. If you bought the home with a partner, you can split the credit, but the total amount claimed can’t exceed $10,000.
How to Claim: Report the amount on line 31270 of your return. Keep all related purchase documents.
8. Donations & Gifts
If you made charitable donations in 2024, including money, goods, or services, you can claim a donation tax credit.
What You Can Get: You can claim up to 75% of your net income in donations, or up to 100% for capital property gifts. The exact amount depends on your donations and income.
How to Claim: Use Schedule 9 to calculate your eligible donations, and report the total on line 34900 of your tax return.
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9. Disability Tax Credit (DTC)
The Disability Tax Credit is available for individuals with long-term disabilities or their supporting family members. This credit helps offset the additional costs associated with having a disability.
What You Can Get: Up to $9,872 for individuals over 18, or $15,630 for those under 18. If you don’t need the full amount, it can be transferred to a supporting family member.
How to Claim: Apply for the DTC through Form T2201, and once approved, claim it on line 31600 of your tax return.
10. Canada Caregiver Credit
The Canada Caregiver Credit offers relief for individuals who care for a dependent with a physical or mental impairment.
What You Can Get: The credit amount varies based on who you’re caring for and their income, with up to $8,375 for dependants aged 18 or older.
How to Claim: Fill out Schedule 5 and report the credit amount on the applicable claim lines.
11. Child Care Expenses
If you paid for child care so you could work, study, or conduct research, you may be eligible to claim child care expenses.
What You Can Get: This deduction helps lower your taxable income. You can claim the cost of daycare, summer camps, and certain caregiver fees.
How to Claim: Complete Form T778 and enter the eligible amount on line 21400 of your return.
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