Are You Claiming All the Tax Credits You're Entitled To?

Canada's tax system offers a wide range of credits designed to reduce your tax burden — but many Canadians either don't know about them or forget to claim them. Here are seven credits worth reviewing before you file.

1. Basic Personal Amount (BPA)

Every Canadian taxpayer is entitled to the Basic Personal Amount, a non-refundable tax credit applied to a set portion of your income. While most tax software applies this automatically, it's worth confirming it's included in your return. The federal BPA is adjusted annually.

2. Medical Expense Tax Credit (METC)

You can claim eligible medical expenses for yourself, your spouse, and your dependants. Qualifying expenses include prescription medications, dental work, vision care, and certain medical devices. Only the amount that exceeds a specific threshold (either a flat amount or a percentage of your net income, whichever is less) can be claimed.

3. Home Buyers' Amount

If you purchased a qualifying home for the first time in the past year, you may be eligible for the Home Buyers' Amount, a non-refundable credit. First-time buyer status means you (and your spouse) did not own a home that you lived in during the preceding four years.

4. Disability Tax Credit (DTC)

The Disability Tax Credit is a non-refundable credit for people with a severe and prolonged physical or mental impairment. A medical practitioner must certify your condition using Form T2201. Unused amounts can often be transferred to a supporting family member.

5. Eligible Tuition and Education Amounts

Post-secondary students can claim tuition fees paid to eligible institutions using the T2202 form provided by their school. If you have more credits than you can use in the current year, unused amounts can be carried forward to future years or transferred to a spouse, parent, or grandparent (up to the allowable limit).

6. Canada Caregiver Credit

If you support a spouse, common-law partner, or dependant with a physical or mental impairment, the Canada Caregiver Credit may apply. The amount varies depending on your relationship with the person and their income level. This credit is often missed by family caregivers who don't realize they qualify.

7. Digital News Subscription Tax Credit

A lesser-known credit, this allows you to claim a portion of amounts paid for qualifying digital news subscriptions from Canadian news organizations. Check the CRA's list of qualifying subscriptions each year, as eligibility is confirmed annually.

Refundable vs. Non-Refundable Credits

It's important to understand the distinction:

  • Non-refundable credits reduce the amount of tax you owe but cannot generate a refund on their own.
  • Refundable credits (such as the GST/HST credit) can result in a payment to you even if you owe no tax.

Next Steps

Review last year's tax return to see which credits you claimed. If you find credits you missed, you can file an adjustment (T1-ADJ) with the CRA to correct prior returns — generally up to 10 years back. Using certified tax software or consulting a tax professional can also ensure you're not leaving anything on the table.