Wait, so I don't actually get the cash back? Really? I was so confused when I first saw this! It turns out these credits just lower the tax you owe to zero, but they won't give you a "bonus" check if you owe nothing.
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Oh, this is a big one! A deduction (like for your RRSP) reduces your total income before they even calculate the tax. A credit is applied after they figure out what you owe! It’s like a coupon versus a discount on the original price. I had to read that three times to get it!
Only if you actually paid taxes during the year! If your employer took money out of your paycheck, these credits help you get that money back. But if you didn't pay any tax at all, these credits just sit there. Frustrating, right?
Some do, some don't! Things like tuition credits can be carried forward to future years. I was so relieved to find that out because I didn't make enough money to use them all this year!
I spent all weekend digging through the CRA website—which is way more complicated than it needs to be—and found that most of us start with these three. They are the heavy hitters that really drop that tax bill down!
Everyone gets this! It’s a set amount of income you don't have to pay federal tax on. For 2023, it was around $15,000. Imagine that—the first $15k is basically tax-free!
I didn't even realize those deductions on my paycheck could be used as credits! You get to claim a percentage of what you contributed to Canada Pension Plan and Employment Insurance.
If you were an employee, you get this automatically. It’s supposed to help with the cost of work-related expenses like uniforms or home office supplies. Every little bit helps!
"I almost missed the Canada Employment Amount because it wasn't on my T4! Make sure your software or your accountant checks that box. It's an easy $1,300+ credit value!"
Check out our guide on How to File Your First Return for more small wins like this.
Okay, this is where it gets really cool. If you are a student and you don't have enough income to use your tuition credits, you don't just lose them! You can actually transfer up to $5,000 to a parent, grandparent, or spouse.
I told my brother about this and he was able to help our parents lower their tax bill by hundreds of dollars. What a win! You just have to make sure you fill out the back of your T2202 form.
Check BC-specific education grants →
Did you know you can claim more than just doctor visits? I found a list of things CRA considers "medical expenses" and it's huge. But there is a catch: you can only claim the amount that is more than 3% of your net income.
Prescription glasses and contact lenses are included. I finally have a reason to get those nicer frames!
Fillings, cleanings, and even braces! It’s not just for emergencies, it's for regular maintenance too.
If you had to travel more than 40km for medical treatment that wasn't available nearby, you can claim the mileage!
Wait, what? Yes! If you have Celiac disease, you can claim the incremental cost of gluten-free food. I was shocked by this!
Seriously, keep every single receipt. The CRA loves to ask for proof of medical expenses. I keep mine in a silver folder labeled "Do Not Touch" so I don't lose them!
Learn about CRA Reviews