Why Tax Breaks Matters
Most Canadians assume tax filing is “just form-filling.” In reality, there are credits and deductions that can reduce your tax bill or increase refunds — many of which are under-claimed because people don’t know they qualify. Below are five high-value, legitimate tax breaks (with CRA guidance) you should check for this tax year. If any apply, claim them — and keep the receipts. Government of Canada
1) Home Accessibility Tax Credit (HATC) — for seniors & people with disabilities
What it is: A federal non-refundable credit that helps cover certain renovations or purchases that make a home safer or more accessible.
Who qualifies: The “qualifying individual” is typically someone who is 65+ at year-end or eligible for the Disability Tax Credit (DTC). Family members who pay eligible expenses for that qualifying individual may also claim, subject to the dwelling limits. Government of Canada
How much you can save: CRA allows up to $20,000 in eligible expenses per qualifying dwelling for 2022 and later years; the credit is calculated as a percentage of that amount (historically tied to the lowest federal personal tax rate). That can translate into up to roughly $3,000 in federal credit at a 15% rate — note actual value depends on the lowest federal rate in the tax year. Government of Canada
How to claim: Enter the HATC amount on line 31285 (complete the federal worksheet / Schedule 12 where required). Keep contractor invoices, receipts, GST/HST registration numbers and before/after photos. Government of Canada
Receipts to keep: Invoices, contractor GST/HST numbers, proof of payment, photos, and any permits — keep them for at least six years. Government of Canada
2) Volunteer Firefighters & Search-and-Rescue Volunteers tax credit
What it is: A federal non-refundable amount for eligible volunteers who perform 200+ hours of qualifying service in the year. Previously smaller, the credit amount was increased in recent budgets. Government of CanadaBudget Canada
Who qualifies: Volunteer firefighters or search & rescue volunteers who complete at least 200 hours of eligible service in the year. You can claim one or the other (not both).
How much you can save: The claimable amount is $6,000 (for recent tax years), and the tax benefit equals that amount multiplied by the lowest federal personal tax rate (historically 15% → about $900), subject to any changes in the lowest rate.
How to claim: Report the $6,000 on line 31220 (volunteer firefighters) or line 31240 (search & rescue). Keep documentation proving eligible hours (organization sign-off, logs).
3) Home-office expenses for employees — yes, you may qualify (but rules changed)
What changed: The COVID flat-rate method (simple $2/day) was available for 2020–2022 only. For 2023 and later tax years, employees must use the detailed method and meet CRA conditions to claim home office expenses.
Who qualifies: Employees who were required to work from home (written or verbal agreement, or formal telework arrangement) and either:
- use the home as their principal place of work, or
- use it exclusively for earning employment income and regularly meet clients there.
What you can claim: A prorated share of utilities, heat, electricity, internet, maintenance, office supplies, and (for renters) part of rent. Homeowners can’t claim mortgage principal — but self-employed people have a different (business-use-of-home) regime that can include mortgage interest and property tax. BDC.caGovernment of Canada
How to claim: Employer fills out Form T2200 (Declaration of Conditions of Employment) and you use Form T777 and the detailed worksheets when filing. Keep bills and a clear allocation method (area of office ÷ total home area).
Quick example: If you can justify 10% of home costs as work space and utilities for the year total $6,000, your deductible portion is:
- Step 1: 10% × $6,000 = $600 deductible.
- Step 2: Tax savings = $600 × your marginal tax rate (e.g., 20%) = $120 saved. (Calculation: 600 × 0.20 = 120.)
Keep all supporting invoices for six years
4) Canada Workers Benefit (CWB) — refundable help for low-income workers
What it is: A refundable tax credit that boosts income for lower-income Canadians who are working; there’s a basic amount plus a disability supplement. You may also receive up to 50% as advance payments (ACWB).
Who qualifies: You must earn working income and be under certain adjusted net-income thresholds; basic rules include being a Canadian resident and age 19 or older (with exceptions if you have an eligible dependent). Check the CRA eligibility tool.
How much you can get: Amounts change year-to-year. CRA examples show the basic maximum (recently about $1,590 for singles and $2,739 for families in the 2024 baseline), plus a disability supplement for eligible people. Check CRA pages for the current year’s maxima.
How to claim: The CWB is claimed on your tax return — the CRA calculates your benefit based on income and family situation; you can opt for advance payments if eligible. Keep pay records and proof of income.
5) Moving expenses if you moved for work or post-secondary school
What it is: If you moved to start a job or to attend a post-secondary program full time, and your new home is at least 40 km closer (by the shortest public route) to the new workplace or school, you may deduct eligible moving expenses from the income earned at the new location.
Eligible items: movers, truck or rental vehicle, temporary living (up to 15 days), travel costs, storage, sale-of-home costs (realtor/legal fees) and more. Full details are on CRA’s moving expenses pages.
How to claim: Complete Form T1-M (Moving Expenses Deduction) and transfer totals to line 21900. Unused moving expenses can sometimes be carried forward to the next year or deducted against certain income types — check CRA guidance.
Keep receipts — CRA wants you to keep records for 6 years
The CRA’s general rule: keep supporting documents for six years from the end of the tax year to which they relate (longer in some special cases). Scans or digital copies are fine. Government of Canada
FAQs – Tax Breaks
Q: I worked from home in 2024 — can I still use the $2/day flat method?
A: No — the temporary flat-rate method applied only to 2020–2022. For 2023+ you must use the detailed method and meet CRA conditions (T2200/T777).
Q: Are volunteer firefighter/search-and-rescue hours verified?
A: Yes — CRA expects documentation of hours and qualifying service; claim on line 31220 or 31240.
Q: How long should I keep renovation/moving receipts?
A: Keep them for at least six years from the end of the related tax year.
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