The Most Common Tax Deductions in Canada for 2024

As we approach tax season, it's essential for Canadians to be aware of the various deductions and credits available to minimize their tax burden. Here are some of the most common and valuable tax deductions you should consider for the 2024 tax year:

RRSP Contributions

Contributing to your Registered Retirement Savings Plan (RRSP) remains one of the most effective ways to reduce your taxable income. You can deduct your RRSP contributions from your income, potentially lowering your tax bracket and increasing your refund.

Child Care Expenses

Working parents can claim eligible childcare expenses, including costs for daycare, babysitters, and even summer camps. Be sure to keep all receipts, as they're required for this deduction.

Charitable Donations

Donating to registered charities not only supports good causes but also provides tax benefits. You can claim a tax credit for your charitable donations, with higher credit rates for donations exceeding $200.

Medical Expenses

Many Canadians overlook medical expenses, but they can add up quickly. Eligible expenses include prescription medications, dental work, and even some home renovations for medical purposes. You can claim the portion of your total medical expenses that exceeds either 3% of your net income or a specific threshold, whichever is less.

Employment Expenses

If you incur expenses related to your job that aren't reimbursed by your employer, you may be able to claim them. This can include union dues, professional membership fees, and even certain home office expenses for remote workers.

Moving Expenses

If you moved at least 40 kilometers closer to a new work location or to attend full-time post-secondary education, you might be able to deduct your moving expenses.

Home Accessibility Tax Credit

Seniors or those eligible for the disability tax credit can claim up to $20,000 in expenses for making their homes more accessible, potentially resulting in a tax credit of up to $3,000.

Tuition Tax Credit

Students can claim a tax credit on eligible tuition fees paid to an educational institution. This credit can help offset the rising costs of post-secondary education.

Remember, these are just a few of the many deductions and credits available to Canadian taxpayers. It's always advisable to consult with KKL CPA to ensure you're claiming all the deductions you're entitled to. By taking advantage of these opportunities, you can potentially increase your tax refund and keep more money in your pocket for 2024.