Tax season is here, and you may be wondering how to get the most money back from the Canada Revenue Agency (CRA). Whether you are an employee, a student, a parent, or a business owner, there are many ways to reduce your taxable income and increase your tax refund. In this article, we will share some of the best tax tips and tricks for Canadians in 2024.
Every Canadian must file their own tax return every year, even if they have a spouse. There are ways to maximize your spousal tax situation using methods like income splitting and transferring deductions between each other. Generally, the spouse with the higher income and tax bill should maximize deductions first as they’re likely to be in a higher tax bracket¹. Although many Canadians dread tax season, if you’re expecting a refund or claiming any benefits or credits such as the GST/HST credit or Canada Child Benefit, it can work out well for you. We’re here to help you make the most of your tax return by highlighting some of the most popular tax breaks to take advantage of.
In order to maximize your tax return, you need to calculate your taxable income first and then lower it using as many tax deductions and credits as possible. A deduction reduces your taxable income, while a credit minimizes the amount of tax you owe.
When is the tax return deadline in Canada?
You need to file your taxes by April 30, 2024. The deadline is extended to June 15, 2024, if you’re self-employed or have a spouse or common-law partner who is self-employed. All taxes owed must be paid to the CRA by April 30, 2024.
What tax deductions and credits can you use? There are hundreds of credits and deductions you can take advantage of. Let’s look at 20 of the most common ones so you can increase your chances of getting a bigger refund.
20 Ways to Maximize Your Tax Return in 2024
1. Childcare expenses
2. Spousal & child support payments
3. Student loan interest
4. Maximize your RRSP contributions
5. Apply for the Canada Workers Benefit
6. Deduct home office expenses
7. Deduct moving expenses
8. Apply for province-specific tax credits
9. Claim capital loss
10. Claim the disability tax credit
11. Claim medical expenses
12. Claim tuition fees and education credits
13. Claim charitable donations
14. Claim political contributions
15. Claim the climate action incentive
16. Claim the digital news subscription tax credit
17. Claim the home accessibility tax credit
18. Claim the home buyers’ amount
19. Claim the first-time home buyers’ incentive
20. Claim the Canada training credit
As you can see, there are many ways to lower your taxable income and increase your tax refund in Canada. However, you need to keep track of your receipts, documents, and forms to support your claims. You also need to file your taxes on time and accurately to avoid penalties and interest. If you need help with your taxes, you can use online software, hire a professional, or contact the CRA for assistance. We hope this article has given you some useful tips and tricks to get the most out of your tax return in 2024. We will post more articles to detail some of the ways mentioned above to maximize your credit.
Happy filing!
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