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Commonly missed Canadian tax credits and deductions

Most of these are missed for one of two reasons: they don't arrive as a slip, or they're claimed on the wrong spouse. Here's what each one is, who it applies to, and where it goes — with the CRA source for every item.

Written by My Tax OptimizerReviewed Sources cited inline

Amounts change most years, so each item links to the CRA page that carries the current figures.

  1. Disability Tax Credit

    Who it's forAnyone with a prolonged impairment — or supporting a family member who has one

    Not just for people who can't work. It covers a marked restriction in walking, dressing, feeding, or mental functions. An unused amount transfers to a supporting spouse or relative, and it's often approved retroactively.

    Form T2201, certified by a medical practitionerForm T2201 — Disability Tax Credit Certificate

  2. Registered Disability Savings Plan

    Who it's forAnyone approved for the Disability Tax Credit, and their family

    Approval for the DTC is what makes you eligible for an RDSP, where federal grants and bonds can add substantially to what you contribute — and the bond requires no contribution at all. Missing the DTC therefore costs far more than the credit itself.

    Opened at a participating financial institutionCRA — Registered Disability Savings Plan (RDSP)

  3. Medical expenses

    Who it's forCouples with any medical costs

    The credit is reduced by a percentage of net income, so the same receipts are usually worth more on the LOWER-income spouse's return — the opposite of what most couples do. You can also pick any 12-month period ending in the tax year, which lets you group two partial years into one claim.

    Either spouse's returnFolio S1-F1-C1 — Medical Expense Tax Credit

  4. Pension income splitting

    Who it's forCouples where one has eligible pension income

    Up to half of eligible pension income can move to a spouse, which can also reduce an OAS clawback. Deadline is much shorter than most: three calendar years from the filing due date, and both spouses must agree.

    Form T1032, filed by both spousesForm T1032 — Joint Election to Split Pension Income

  5. Child care expenses

    Who it's forParents paying for care so they can work or study

    Generally must be claimed by the LOWER-income spouse. Covers more than daycare: day camps, overnight camps within limits, boarding school, and a relative over 18 who isn't a dependant. Camp fees are the most forgotten piece.

    Form T778Form T778 — Child Care Expenses Deduction

  6. Moving expenses

    Who it's forAnyone who moved at least 40 km closer to work or school

    The 40 km test is about distance to the new work or study location, not how far you moved. Covers temporary lodging and meals, lease-cancellation costs, commission on the old home, and land transfer tax on the new one.

    Line 21900Line 21900 — Moving expenses

  7. Carrying charges and investment interest

    Who it's forAnyone with a non-registered investment account

    Interest on money borrowed to earn investment income is deductible, as are investment counsel fees on non-registered accounts. Fees inside an RRSP, TFSA or FHSA are not. Missed because it sits on a broker statement rather than arriving as a slip.

    Line 22100Line 22100 — Carrying charges and interest expenses

  8. Home accessibility renovations

    Who it's forSeniors 65+, DTC-eligible people, and family who support them

    Grab bars, walk-in tubs, ramps, wider doorways in a principal residence. The same invoice often supports both this credit and a medical expense claim. BC, New Brunswick and Saskatchewan add provincial versions — BC's and New Brunswick's are restricted to seniors and disability-related work; Saskatchewan's covers general renovations.

    Line 31285Line 31285 — Home accessibility expenses

  9. Multigenerational home renovation credit

    Who it's forFamilies building a secondary unit for a senior or DTC-eligible adult

    Refundable credit for creating a self-contained secondary dwelling so a senior or DTC-eligible adult can live with family. Newer than most items here, and correspondingly under-claimed.

    Line 45355Line 45355 — Multigenerational home renovation tax credit

  10. Home buyers' amount

    Who it's forFirst-time buyers — and DTC-eligible buyers who aren't first-time

    You don't have to be a first-time buyer if you're eligible for the disability tax credit, or bought the home for a related DTC-eligible person. Can also be split between spouses.

    Line 31270Line 31270 — Home buyers' amount

  11. Capital losses never carried back

    Who it's forAnyone who sold an investment at a loss

    A net capital loss can go back three years against gains you already paid tax on — a refund, not just a future deduction. Watch the superficial loss rule: repurchasing within 30 days either side denies the loss.

    Form T1A for a carrybackForm T1A — Request for Loss Carryback

  12. Charitable donations never pooled

    Who it's forAnyone who gives regularly

    The credit rate steps up above a threshold, so donations are usually worth more pooled onto one spouse's return than split. Unclaimed donations can also be carried forward and claimed together in one stronger year.

    Either spouse's return; carry-forward allowedFolio S7-F1-C1 — Split receipting and deemed fair market value

  13. Union and professional dues

    Who it's forAnyone paying to hold a professional designation or belong to a union

    Annual dues required to maintain a statutory professional status are deductible, as are union dues. Initiation fees and the portion covering pension or insurance generally aren't — and reimbursed dues can't be deducted at all.

    Usually on your T4Folio S2-F2-C1 — Employee professional membership and other dues

Missed one in a past year?

Most of these can still be claimed retroactively. For a personal return, Canada allows a reassessment request up to 10 calendar years back — though one more year closes every December 31, and a few items on this list expire sooner.

How the 10-year rule works, and which years are still open

Questions

Can I still claim a credit I missed in a previous year?

Usually yes. For a personal return, Canada lets you ask the CRA to reassess a year up to 10 calendar years after the end of that tax year. That covers most of the items on this page. A few have their own shorter deadlines — a pension income splitting election, for example, expires three years after the filing due date.

Which of these is worth the most?

It depends entirely on your situation, but the Disability Tax Credit is the one with the largest range, because it can be approved retroactively, can transfer to a supporting family member, and unlocks other programs. Whether it applies at all depends on a medical practitioner certifying a prolonged impairment.

Do I need receipts to claim these?

You generally do not send receipts with a return filed electronically, but you must keep them and produce them if the CRA asks. The CRA can request supporting documents years later, and for an adjustment to a prior year you should expect to provide them up front.

Will claiming these increase my chance of an audit?

Claiming something you are entitled to, with documentation to back it, is not what triggers review. What draws attention is a claim that is disproportionate to reported income or unsupported when asked. Keep the paperwork and claim what applies to you.

Find out which of these apply to you

Answer a few questions and we'll check your situation against the full Canadian rule set, federal and provincial, for every year you can still reach. Free, about three minutes.

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