Most Commonly Missed Tax Deductions and Credits for 2017
RRSP contributions made in the first 60 days of 2018
RRSP contributions made in the first 60 days of 2018 can be deducted from your 2017 income. These contributions must be reported on your 2017 return even if you do not want to deduct them until next year.
Child care expenses
Aside from fees paid for child care services, you can also claim day nursery school fees, day camp and day sports school fees, and overnight camps where the primary goal of the camps are to care for children.
Carrying charges and interest expense
You can claim the following carrying charges and interest you paid to earn income from investments:
- fees to manage or take care of your investments
- fees paid to obtain investment advice
- If you borrowed money for investment purposes you can claim the interest paid on that loan
You can claim expenses you incurred for prescription medication, medical services preformed by a medical practitioner, certain medical devices and many more (see our resources section for a link to CRA’s full listing). However, did you know you can also claim travel expenses for obtaining medical services that are not offered in your area. If you had to travel more than 40 kms (one way) to seek medical attention, you can claim your mileage for the trip. For longer trips (over 80 kms) meals and accommodations may also be claimed.
In general, you can claim eligible moving expenses if:
- You moved and established a new home to work or run a business at a new location; or
- You moved to be a student in a full-time attendance in a post post-secondary program at a university, college or other educational institution.
- To qualify, you new home must be at least 40 kilometres closer to your new work or school.
- Some eligible expenses include, transportation costs, travel expenses, meals, temporary lodging, and in some cases even the costs incurred to sell and buy your home.
You can deduct certain expenses you paid to earn employment income. You can do this only if your employment contract required you to pay the expenses and you did not receive an allowance for them, or the allowance you received is included in your income. To make the claim, your employer must complete and sign form T2200 Declaration of Conditions of Employment.
Some examples are:
- Travel expenses including food, lodging and transportation if required to be away from your normal place of work
- Allowable motor vehicle expenses can be claimed if you were required to work away from your normal place of work. This would include a percentage of your fuel, maintenance and repairs, insurance, licences, Capital Cost Allowance on your vehicle, interest on your vehicle loan and/or eligible leasing costs.
- Supplies (including tradesperson’s tools) that you had to provide and pay and used directly in your work
- Work-space-in-the-home expenses, if the work space is where you mainly (50% of the time) do your work OR you use the space on a regular and continuous basis for meeting clients, customers or other people during your employment duties.
Contact one of our professionals to find out more about these and other deductions you may be missing!