If you’re not claiming every tax break you can, you’re leaving money on the table. The CRA offers literally hundreds of tax deductions and credits, so it’s likely that most Canadians miss out on money they’re entitled to.
Now, it’s impossible to go through every single tax break in one blog post, but after years of working with clients, I know which ones Canadians miss most often. Today, I’ll break down the most overlooked tax breaks that could put serious money back in your pocket.
And stick around until the end because I’ll also show you how to file your taxes for free and use software that automatically flags these missed deductions—so you never overpay again.
The Most Overlooked Tax Breaks
1. Canada Workers Benefit (CWB)
The Canada Workers Benefit (CWB) is supposed to help low-income Canadians by topping up their wages—but up to an estimated 240,000 eligible people don’t claim it annually, leaving $175 million on the table. Why?
The CRA’s application process is complicated, and many people don’t even know they qualify. Paper filing makes it even worse—only half of paper filers claim the benefit compared to those using tax software.
If you’re a low-income worker, this is free money you don’t want to miss.
2. Pension Income Splitting
If you’re retired and your spouse is in a lower tax bracket, you could save thousands by using pension income splitting. This lets you transfer up to 50% of your pension income to your spouse, lowering the total household tax bill. The result? Less money lost to taxes and more in your pocket. Despite the massive savings potential, many retirees don’t take advantage of it—whether because they don’t know about it or assume it’s automatic (it’s not!). You just need to file Form T1032 with your return each year to claim it.
Pro tip: If you’re retiring soon, start planning early so you can adjust pension withdrawals strategically.
3. Moving Expenses Deduction
If you moved at least 40 km closer to a new job or school, you can deduct moving expenses—including travel, storage, and even temporary accommodations. The catch? Most people forget to track their receipts, meaning they miss out on hundreds (or thousands!) of dollars in deductions. The CRA won’t remind you, so if you made a work-related move in the past year, dig up those receipts! Pro tip: You can only deduct moving costs against your income earned at the new location—so if you moved but didn’t start work or school yet, you’ll have to wait.
4. Spousal RRSP Contributions
Here’s a tax-saving move that a lot of couples completely overlook: instead of maxing out your own RRSP, contribute to a Spousal RRSP instead. Why? It helps spread out retirement income, reducing taxes down the road. If one spouse earns a lot more than the other, this is a golden opportunity to lower future tax bills—but many people don’t even think about it!
Bonus: You still get the immediate tax deduction, but later, when the money is withdrawn, it’s taxed under your spouse’s lower rate. Smart, right?
Before we go to the next tax break, if you want to keep more of your money and pay less in taxes during retirement, I’ve put together a free guide with 5 proven strategies to maximize your savings.
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5. Home Buyers’ Amount
If you purchased your first home recently, you might be eligible for the Home Buyers’ Amount, a non-refundable tax credit. As of 2022, eligible first-time homebuyers can claim $10,000, which translates to a tax reduction of up to $1,500. Despite its benefits, many first-time homebuyers are unaware of this credit and fail to claim it on their tax returns.
6. Home Office Expense Deduction
With the rise of remote work, the Home Office Expense Deduction allows employees and self-employed individuals to claim expenses related to their home workspace, such as rent, utilities, and internet costs.
However, many eligible taxpayers overlook this deduction, either due to a lack of awareness or the perceived complexity of the claim process. In the 2023 tax season, Canadians claimed a total of $2.08 billion in home-office expenses, marking a 41% increase from the previous year—but many still miss out.
7. Tuition and Education Credits
Students can claim tuition and education credits to offset the cost of post-secondary education. Additionally, unused credits can be transferred to a spouse, parent, or grandparent. However, many students and families are either unaware of these credits or unsure how to claim them, resulting in missed tax relief opportunities.
The credit applies to post-secondary tuition fees, but students must ensure their school is on the CRA’s designated list to qualify.
8. Childcare Expense Deduction
Parents can deduct childcare expenses, including costs for daycare, nannies, and certain educational programs, up to a specified limit. However, many parents fail to claim these expenses due to inadequate record-keeping or lack of awareness.
The deduction must typically be claimed by the lower-income spouse, and it applies only to expenses incurred to allow the parent to work, study, or run a business.
9. Charitable Donations Tax Credit
Did you know that donating to charity can provide you with a tax credit of up to 33%? And if you don’t claim it right away, you can carry forward unused donations for five years? So, if you’ve been donating without claiming the tax credit, you might have hundreds or even thousands in tax savings waiting for you. Despite this, tons of Canadians forget to claim their charitable donations on their taxes.
Pro tip: Get your donation receipts in one place now so you don’t scramble at tax time!
10. Student Loan Interest Credit
Interest paid on government student loans is eligible for a non-refundable tax credit. However, many graduates forget to claim it, especially since financial institutions may no longer send automatic interest statements. If you didn’t claim it in previous years, you can carry it forward for up to five years. This applies only to government student loans—private loans and lines of credit don’t qualify.
11. Home Accessibility Tax Credit (HATC)
If you’re a senior or an individual with disabilities, you can claim the Home Accessibility Tax Credit (HATC) for renovations that improve your home’s accessibility. You can claim up to $20,000 in eligible expenses, providing a 15% tax credit, which translates to a maximum benefit of $3,000 per year.
Despite its benefits, many eligible individuals are unaware of this credit and fail to claim it on their tax returns.
12.Renters’ Tax Credit (Provincial)
If you’re a renter in Canada, you might be wondering if you can claim rent as a tax deduction. While rent itself isn’t a federal deduction, certain provinces offer tax credits to help offset housing costs.
In Ontario, the Ontario Trillium Benefit (OTB) considers your rent, income, and age to determine eligibility. In Manitoba, renters can claim up to $525 per year through the Education Property Tax Credit. Quebec offers the Solidarity Tax Credit, which includes a housing component for low-income earners.
If you work from home, you may be able to deduct part of your rent as a home office expense under certain conditions. Keep all receipts, as the CRA may request proof when reviewing your return.
13. Eligible Dependent Amount
If you’re single, divorced, or widowed and supporting a dependent, you might be able to receive the Eligible Dependant Amount—a non-refundable tax credit. This credit can significantly reduce your taxable income, but many Canadians overlook it due to lack of awareness. To qualify, the dependant must be a parent, grandparent, child, grandchild, brother, or sister who is either under 18 or has a physical or mental impairment, and must have lived with you in a home you maintained.
14. Tutoring Services Tax Credit
If your child has a learning disability, you may be able to claim tutoring expenses as a medical expense on your tax return. To qualify, a medical practitioner must certify in writing that these services are required due to your child’s condition. The tutoring must be provided by someone in the business of offering such services to individuals not related to the student. Many parents are unaware of this opportunity and fail to claim these expenses, missing out on potential tax savings.
15. Meals & Entertainment Deduction (Self-Employed)
Self-employed individuals can deduct 50% of eligible meal and entertainment expenses incurred for business purposes. However, many fail to meticulously track these expenses, resulting in missed deductions. Keeping detailed records of all business-related meals and entertainment can lead to significant tax savings. It’s essential to maintain proper documentation to support your claims in case of an audit.
16. Carrying Charges Deduction
Investors can deduct fees paid for investment advice and interest on loans used to earn investment income. Yet, many overlook these deductions, missing out on potential tax savings. Reviewing your financial statements and consulting with a tax professional can help identify and claim these eligible expenses, thereby reducing your taxable income. Proper documentation is crucial to substantiate these deductions.
How to File Taxes for Free & Never Miss a Tax Break
Filing your taxes doesn’t have to cost money, and the right tools can catch missed deductions automatically. Here’s how to make sure you claim everything you’re entitled to:
✅ Use Free Tax Software – For simpler tax returns, programs like Wealthsimple Tax and TurboTax Free flag missing credits and deductions while guiding you through your return.
✅ Check CRA My Account – You can review past tax returns and amend them for up to 10 years if you missed a credit in previous years—meaning you could get money back.
✅ Use Auto-Fill to Avoid Errors – Many tax programs pull your tax slips (T4s, RRSP contributions, etc.) directly from the CRA, reducing mistakes and making sure you don’t forget anything.
💡 Stop Forgetting Tax Breaks (Because We All Do It)
Most people don’t miss tax deductions because they don’t qualify—they just forget to track them. The trick isn’t to memorize every tax rule—it’s to set up simple systems that do the work for you:
📌 Use a Receipt-Scanning App – Apps like Expensify or QuickBooks can automatically track receipts by scanning them with your phone. No more digging through old emails and paper piles.
📌 Make a ‘Tax Receipts’ Email Folder – Most tax-related documents arrive via email. Create a folder now so everything is easy to find when tax season rolls around.
📌 Keep a Quick Tax Deduction Checklist – Every year before filing, run through a simple checklist: Did I claim my home office? Medical expenses? Investment fees? A quick 5-minute review can save you hundreds or even thousands.
You may be leaving money on the table without even realizing it. At Blueprint Financial, we don’t just focus on helping you find tax savings—we take a comprehensive approach by building personalized financial strategies that grow and protect your wealth.
If you’re ready to take control of your financial future and work with experts who craft solutions that actually work for you, explore our financial planning services here.
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