1. Medical Expenses (Not covered by Insurance)
To get the most out of your claim, always have one spouse claim all the medical expenses for the immediate family (you, your spouse, and kids under 18). It is usually better to claim the medical expenses on the lower income spouse’s return. Only expenses in excess of the lesser of $2,397 for 2020 or 3% of line 23600 net income can be claimed for the federal tax credit. Don’t forget about any private insurance premiums you pay throughout the year. Those costs may be eligible medical expenses too.
2. Moving Expenses
If you’ve relocated for work, you may be eligible to claim a wide range of moving expenses for you and your family. Some conditions apply but, generally, if you move to a home that’s at least 40 km closer to your new place of employment, you can claim associated moving costs. Commonly overlooked moving expenses are:
- Travel expenses for your family including vehicle expenses, accommodations, and meals.
- Fees for changing your address on documents or identification such as your driver’s license, vehicle registration, or other legal documents.
- The cost of utility hookups and disconnections.
- The expense of title transfer for your new home.
If you move late in the year, a portion of your moving expenses may have to wait to be claimed. Moving expense claims are limited to the income you earn at the new job that year. If you move in December, there’s not much time to use up your limit. Don’t worry, any unused moving expenses can be claimed the following year. For example, if your moving expenses totaled $10,000 but you only earned $5,000 this year at the new job, you’re limited to a $5,000 claim this year. The leftover $5,000 will be carried forward to next year.
3. Student Loan Interest
Interest paid on a student loan is an often-overlooked credit. This non-refundable credit applies to interest paid on eligible loans – not all types of loans qualify. For example, if you opened a student line of credit to fund your studies, that interest isn’t deductible. Student loan interest can be carried forward for up to five years. If you don’t need the deduction this year, consider carrying it forward.
4. Childcare Expenses
If you pay for childcare so you can work, attend school, or run your business, you already know that these expenses are tax-deductible. But did you know that other expenses also qualify? Along with the usual fees from daycares or in-home providers, most overnight camps and summer day camps are also eligible for the deduction.
5. Employment Expenses
From home office costs to tradesperson’s tools, if you incur certain expenses related to your job, you may qualify for a deduction at tax time. Be sure to obtain a signed form T2200 (Declaration of Conditions of Employment). This form, which is completed by your employer, outlines exactly what types of expenses you can claim as well as any reimbursements you’ve received.