Common Tax Deductions and Credits
Basic Personal Amount
On Dec. 9, 2019, the new government introduced legislation to implement changes to the Basic Personal Amount (BPA):
The basic personal amount is now calculated based on income. This is a broad-based tax change that should put more money into employees’ pockets every payday and help reduce quarterly or annual instalment remittances for others.
Note that the basic personal amount is factored in the calculation of a number of other credits and amounts such as the spouse/common-law partner amount and the eligible dependant amount, and is used in other calculations such as determining whether a child is financially independent.
The maximum basic personal amount for 2024 reduces from $15,705 beginning at income over $173,205 (the lower threshold of the 4th federal bracket) and reduces fully to $14,156 at income over $246,752 (beginning of 5th bracket). The supplement is therefore $1,549.
Canada Carbon Rebate (CCR)
This refundable tax credit is being offered to residents of select provinces including Ontario. The credit consists of a basic amount and a supplement for residents who live in qualified small and rural communities.
Information about the Canada Carbon Rebate:
This benefit was initially named the ‘Carbon Tax Credit’ (CTC), was subsequently changed to the ‘Climate Action Incentive Program’ (CAIP) and is now called the Canada Carbon Rebate (CCR)
To be eligible, the taxpayer must be a resident of Ontario and be 18 years of age or older. Taxpayers cannot claim this credit if they were a non-resident of Canada at any point in the tax year, were confined to a prison or similar institution for a period of at least 90 days in the tax year, were exempt from income tax at any time in Canada in the tax year (under certain circumstances), or if the taxpayer was a person in respect for whom a children’s special allowance (CSA) was payable at any time in the tax year.
The CCR continues to be paid as a quarterly benefit, rather than a refundable tax credit on the income tax return. Individuals will need to file an income tax return to be eligible for these payments.
The amounts payable for the CCR for the 2023 tax year were:
Base Amount: $560.00
Amount for an eligible spouse or common-law partner: $280.00
Amount for a single parent’s qualified dependent: $280.00
Amount for other qualified dependents: $140.00 each
Supplement for residents of small and rural communities: Additional 20%
Canada Caregiver Credit
Beginning with tax year 2017, the Infirm Dependent Credit, Caregiver Credit, and Family Caregiver Credits have been consolidated into the new Canada Caregiver Credit (CCC). The rules for this new credit are complex, however, a couple of changes of interest are:
Taxpayers can now claim this new credit for infirm dependents 18+ years of age that do not live with them.
Taxpayers will NOT be able to claim non-infirm senior parents or grandparents.
For 2024 this credit starts to reduce when the dependent has $19,666 of income and is fully eliminated at $28,041 of income
Canada Child Benefit
Payments under this new benefit began in July 2016. This program has replaced the Canada Child Tax Benefit (CTTB) as well as the Universal Child Care Benefit (UCCB).
Canada Pension Plan Enhancement
Starting with 2019 tax year, the CPP benefit is being gradually “enhanced”. This means you will receive higher benefits in exchange for making higher contributions.
These increased contributions will allow the enhanced CPP to replace 33.33% of your “average lifetime earnings” rather than the current 25%
Starting with 2024, there are now three components to CPP contributions (the 2nd Additional Enhanced Rate starting in 2024):
o Base: Remains at 4.95% employee + 4.95% employer
o 1st Additional Enhanced Rate: Additional 1% each, bringing total to 5.95% each
o 2nd Additional Enhanced Rate: additional 4% employer + 4% employee only for individuals with annual earnings above the 1st earnings ceiling (between $68,500 and $73,200 in 2024)
Canada Training Credit (CTC)
This is a (notional) refundable tax credit that is available for eligible tuition and other fees paid for courses taken in 2020 and subsequent taxation years. The credit will be the lesser of the individual’s Canada training credit limit for the taxation year, and half of the eligible tuition and fees paid to an eligible educational institution in respect of the year
This credit began to accumulate in 2019 tax year for use in 2020 tax year and future years
Starting in 2019, an eligible individual is able to accumulate $250 in each year, up to a maximum of $5,000 in a lifetime
In 2019 and subsequent tax years, an individual who is at least 25 years old and less than 65 years old at the end of the year can accumulate $250 towards the individual’s Canada training credit limit (for the next year), provided they satisfy all of the following conditions with respect to the year:
file a tax return for the year;
be resident in Canada throughout the year;
have a minimum income of $11,511 (in 2024; this is an indexed amount) from:
maternity and parental benefits, and
working income (income from an office or employment, business income, the taxable part of scholarship income and research grants, the tax-exempt part of earnings of status Indians and emergency service volunteers, and income under the Wage Earner Protection Program Act).
have individual net income for the year that does not exceed the top of the third tax bracket in that year
The Canada training credit limit for a year is equal to their Canada training credit limit for the previous year minus any Canada training credit claimed in the previous year plus the annual accumulation of $250 in the previous year.
The amount of the Canada training credit will be the lesser of:
half of the eligible tuition and fees paid in respect of the year, and
the individual’s Canada training credit limit for the taxation year.
The Canada training credit claimed on your income tax and benefit return will reduce your tax owing. If the credit is more than your tax owing, you will get a refund for the difference.
You can claim the Canada training credit for a taxation year if you satisfy all the following conditions:
you file an income tax and benefit return for the year;
your Canada training credit limit for the year is greater than zero;
you are resident in Canada throughout the year;
tuition or fees are paid to an eligible educational institution in respect of the year; and
the tuition and fees are otherwise eligible for the existing tuition tax credit.
Note that individuals under the age of 26 or over the age of 65 at the end of a year have a Canada training credit limit of zero and thus cannot claim the Canada training credit for tuition and fees incurred in respect of that year.
Eligible tuition and fees for the Canada training credit will be the same as under the existing rules for the tuition tax credit. In particular, eligible tuition and fees will include:
tuition fees
ancillary fees and charges (e.g., admission fees, exemption fees and charges for a certificate, diploma or degree); and
examination fees.
You may be able to claim both the Canada training credit and the tuition tax credit in the same year. However, in calculating your tuition tax credit, your eligible tuition and fees paid for the year will be reduced by the Canada training credit you claim in that year.
Your Canada training credit limit will be communicated to you each year on your Notice of Assessment (NOA) and will be available through the CRA’s My Account portal.
You cannot transfer any unused Canada training credit limit to another individual. Any balance at the end of the year you turn 65 will expire. Therefore, no determination of your Canada training credit limit will be made for any year following the year you turn 65.
Canada Workers Benefit
The Canada Workers Benefit is a refundable tax credit that is available to taxpayers and their families who are working and earning a low income. This credit has been extended for the 2023 tax year to include a $15,239 secondary earner exemption, which will make the credit available to more Canadians.
Canada Workers Benefit Advance Payments
Effective for 2023, advance payments of the CWB were issued automatically to taxpayers who were entitled to receive this benefit in the previous tax year. These payments began in July of 2023 and were made in the form of three payments with the total paid representing 50% of the CWB benefit eligibility for the prior taxation year. These taxpayers will be issued an RC210 form to include on their 2024 income tax return.
CCA classes for zero-emission vehicles acquired after March 18, 2019
CRA has introduced new Class 54 for vehicles that would otherwise be included in class 10 or 10.1 and Class 55 for vehicles which would otherwise be included in class 16
Taxpayers will not qualify to claim under these classes if they took the dealer rebate of $5,000 for vehicles under $45,000
These new classes can be depreciated to a maximum of $55,000 plus taxes, rather than the class 10 and 10.1 maximums of $30,000 plus taxes
The rate for these classes is 100%, meaning that the entire cost (up to $55,000 plus tax) can be claimed in year 1
The risk is that these classes WILL be subject to recapture
The taxpayer can still opt to claim zero-emission vehicles under class 10 or 10.1 if desired, noting that the AIIP (Accelerated Investment Incentive) is still available
Charitable Donations
Donations made to eligible charitable organizations may be eligible for non-refundable tax credits. Donations may be carried forward for up to 5 years. Taxpayers may choose to claim donations made in multiple years at the same time, so as to take advantage of the higher credit percentage for donations exceeding $200.
Charitable donations made between January 1 and February 28, 2025 will be eligible to claim on the 2024 income tax and benefit return.
Please refer to the 'First-Time Donor Super Credit' section below for additional information.
Charitable Donations – New Tier for High Income Taxpayers
Beginning in 2016, there are new tiers being applied to charitable donations for taxpayers who are subject to the new 33% tax bracket. For taxpayers whose federal tax rate is 33%, charitable donations will be calculated as:
15% on 1st $200
33% on the amount of donations (after the 1st $200) that is equal to the amount of income being taxed at 33%
Remainder at 29%
First time donors will receive 25% of $1,000 in charitable donations
Note that the first time donor super credit (available to all taxpayers) has expired starting with tax year 2017. Please refer to the 'First-Time Donor Super Credit' section below for additional information.
Child Care Expenses
Child care expenses can be claimed for child care expenses made to:
Caregivers providing child care services
Day nursery schools and daycare centres
Educational institutions for the part of the fees that relate to child care services
Day camps and day sports schools where the primary goal of the camp is to care for children
Boarding schools, overnight sports schools, or camps where lodging is involved
Eligible expenses are deductible from income if they enable you or your spouse to be employed or in school. The expenses must generally be deducted from the spouse with lower income for that tax year. The maximum deductions are $8,000/child under 7 years of age, $5,000/child aged 7-16, and $11,000 for disabled children. Applicable deductibles are $175/week/child under 7 years of age, $100/week/child aged 7-16, and $250/week/child for disabled children. In addition, the deduction cannot be greater than 2/3 of the taxpayer’s earned income for the year.
Child Care Expenses – Increased Limits
The maximum amount of child care expenses that can be deducted were increased in 2015:
Previous Amounts New Amounts for 2015 and future
Per Child Under 7 $7,000 $8,000
Per Child Aged 7-16 $4,000 $5,000
Infirm dependents over 16 $4,000 $5,000
Per severely disabled child $10,000 $11,000
Digital News Subscriptions
Taxpayers can claim up to $500 for amounts paid in the year for qualifying subscription expenses. The amounts must have been paid to a qualified Canadian journalism organization (QCJO) that does not hold a licence to broadcast, for a digital news subscription to content that is primarily written news.
2024 is expected to be the final year to make this claim; this tax credit is expected to be eliminated for 2025 and future tax years.
Education and Textbook Credits
Beginning in 2017, Education and Textbook credits have been eliminated; however, Federal Tuition credits will continue to be eligible Federal tax credits. Note that any carryforward Education and Textbook amounts from tax year 2016 or earlier will be honoured and can still be claimed in 2017 and future years.
Tuition and Education Amounts for the Province of Ontario can be claimed only for studies before September 5, 2017 only.
Eligible Educator School Supply Tax Credit
Starting in 2016, this tax credit will allow employee taxpayers who are eligible educators to claim a 15% refundable tax credit based on an amount of up to $1,000 of purchases of eligible teaching supplies by the employee in a taxation year. To be eligible, the supplies must be:
purchased for teaching or facilitating learning, and directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the teacher or educator’s duties of employment;
not reimbursable and not subject to an allowance or other form of assistance
not deducted or used in calculating a deduction from any person’s income for any taxation year.
consumable, with the exceptions of games and puzzles, books, containers such as plastic boxes or bankers boxes, and educational software, which will all be eligible
Other non-consumable items such as tablets, computers, rugs for children to sit on are NOT eligible.
To claim this credit, the taxpayer must be able to produce a signed certificate from a school official on request
This tax credit has been extended in the following ways for the 2021 tax year:
Eligible educators can now claim 25% of up to $1,000 in eligible expenses (up from 15% in 2020)
The rules with respect to the location of the educator have been broadened and are no longer limited to supplies that are used in the school only
Some prescribed durable goods including electronic devices have been added to the list of eligible expenses, including:
laptops, desktop and tablet computers (provided that none of these items are made available to the eligible educator by their employer for use outside of the classroom),
printers,
multimedia projectors,
video streaming devices,
speakers,
electronic educational toys,
wireless pointer devices,
external data storage devices,
webcams, microphones and headphones,
calculators (including graphing calculators),
digital timers,
digital educational programs, and
educational support software
GST/HST Credit Administration
Starting in 2014, individuals no longer need to apply for the GST/HST credit; CRA will now automatically determine eligibility for every individual who files a return. A notice of determination will be sent to those who are eligible for the credit.
Home Accessibility Tax Credit
Beginning in tax year 2016, the Federal government has offered a non-refundable tax credit that benefits the taxpayer by 15% of up to $10,000 spent on qualifying home renovations. Beginning for tax year 2022, this has been increased to 15% of up to $20,000 spent on qualifying expenses. To qualify, the taxpayer must be 65 years or older or claiming the DTC or have a family member meeting these requirements living with them. This new federal credit is non-refundable. Taxpayers may have an eligible expense that also qualifies as a medical expense. If so, the expense can be claimed as a medical expense and a home accessibility expense.
Home Buyer’s Amount (First Time Home Buyer’s Tax Credit)
This non-refundable credit, available to first time homeowners, has been doubled for the 2022 tax year to 15% of $10,000 (was previously $5,000).
Home Buyer’s Plan
The Home Buyer’s Plan allows a taxpayer to borrow funds temporarily from an existing RRSP to buy a house as long as neither spouse/common-law partner has owned a home in the last 5 years. The maximum amount that can be withdrawn tax-free is $25,000 per individual before March 19, 2019 and $35,000 per individual after March 19, 2019. Both spouses may withdraw for a total maximum of $50,000/$70,000 (depending on the withdrawal date). This RRSP loan must be repaid within 15 years, beginning on the 2nd year following the year of withdrawal (minimum payment of 1/15 of the original withdrawn amount per year) and unlike regular RRSP contributions, the amount of the payment is not deductible from income. The taxpayer may participate in the Home Buyer’s Plan in conjunction with the Lifelong Learning Plan (see below).
Home Office Expenses for Employees
The temporary flat rate method and the simplified T2200S methods for claiming home office expenses are discontinued for tax year 2023. For tax year 2024 and future, employers must complete and sign the T2200 form and provide a copy to the employee if the employee chooses to deducted expenses from their income. These expenses can include work-space-in-the-home expenses, vehicle expenses, and a variety of other expenses.
For prior tax years, there were a number of methods available:
1) Temporary Flat Rate Method (Available for tax years 2020 – 2022 only; discontinued for tax year 2023 and future)
The temporary flat rate method simplified the taxpayer’s claim for home office expenses.
Taxpayers are eligible to use this method if they worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020, 2021 or 2022 due to the COVID-19 pandemic.
To use this method to claim the home office expenses you paid, the taxpayer must meet all of the following conditions:
The taxpayer worked from home in 2020, 2021 or 2022 due to the COVID-19 pandemic
The taxpayer worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020, 2021 or 2022
The taxpayer is only claiming home office expenses and is not claiming any other employment expenses
The taxpayer was not reimbursed for all of their home office expenses by their employer
Taxpayers can claim $2 for each day worked from home during that period plus any additional days worked at home in 2020, 2021 or 2022 due to the COVID-19 pandemic.
Days that can be counted:
days that the taxpayer worked full-time hours from home
days that the taxpayer worked part-time hours from home
Days that cannot be counted:
days off
vacation days
sick leave days
other leave or absence
The maximum that a taxpayer can claim using the new temporary flat rate method is $400 (200 working days) per individual in 2020 and $500 (250 working days) per individual in 2021 and 2022.
No employer documentation is required; the taxpayer’s employer does not need to complete and sign Form T2200 or T2200S
2) Simplified Declaration of Conditions of Employment for Working at Home due to COVID-19 (T2200S) (Available for tax years 2020 – 2022 only; discontinued for tax year 2023 and future)
Employers can use this form for employees who worked from their home in 2020, 2021 or 2022 due to Covid-19 and are only claiming home office expenses
Employers must complete and sign the T2200S form and provide a copy to the employee if the employee chooses to use the detailed method to calculate their home office expenses. If the employee is required to pay for expenses other than home office expenses, the employer should complete form T2200 instead
3) Declaration of Conditions of Employment (T2200) - This is the only option available for tax year 2024
Employers must complete and sign the T2200 form and provide a copy to the employee if the employee chooses to deducted expenses from their income. These expenses can include work-space-in-the-home expenses, vehicle expenses, and a variety of other expenses.
*Note that if the employee is using a shared space in the home, the expenses should be further prorated by the number of hours worked per week / 168 total hours in a week
LLP (Lifelong Learning Plan)
The Lifelong Learning Plan allows a taxpayer to withdraw funds temporarily from an existing RRSP for full-time post-secondary education. The maximum amount that can be withdrawn tax-free is $20,000 total, and $10,000/year. The taxpayer’s spouse or common-law partner may also withdraw from the RRSP to double the maximums. This RRSP loan must be repaid within 10 years, with a minimum payment of 1/10 of the original withdrawn amount per year). Repayment must begin in the fifth year following withdrawal or the second year after the taxpayer stops studying full-time, whichever comes first. LLP repayments are not deductible for tax purposes. Once repaid, the taxpayer can participate in the LLP again with the same maximums and requirements. The taxpayer may participate in the LLP program in conjunction with Home Buyer’s Plan (see above).
Moving Expenses
A taxpayer may deduct eligible moving expenses from the employment or self-employment income earned at his/her new place of employment if he/she has moved at least 40 kilometers closer to the new location. Similarly, a student may deduct moving expenses if he/she has moved 40 kilometers closer to the educational institution to study as a full-time student. Students can only deduct these expenses from scholarships, bursaries, fellowships and certain grants and prizes that are required to be part of their taxable income. The new home must be the ordinary residence of the taxpayer and generally, the old and new home locations must both be from within Canada.
Multigenerational Home Renovation Tax Credit (“MHRTC”)
Effective Jan 1, 2023, this is a new refundable tax credit of up to $7,500 (15% of $50,000) that is available for a qualifying renovation to an eligible dwelling that is completed to allow a qualifying individual to live with a qualifying relation. Only one qualifying renovation can be claimed per qualifying individual in their lifetime and the credit must be claimed in the taxation year that includes the end of the renovation period (i.e. when final inspection or proof of project completion is received). This means some taxpayers will want to look for receipts for expenses that occurred prior to 2023. The claim is for costs spent to construct a secondary suite in the taxpayer’s home for a senior (65+) or disabled adult. These tenants are known as the “eligible person.” In the case of adults with disabilities, these individuals must be at least 18 years of age and must be eligible for the Disability Tax Credit. The eligible person must be a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew of the eligible person and their spouses/common law spouse. The credit may be split between claimants so long as the total cost of the claim does not exceed $50,000. One qualifying renovation is permitted for of an eligible person over their lifetime. A “qualifying individual” who can make this claim will ordinarily reside or intend to reside in the dwelling being renovated within 12 months after the end of the reno period or be the spouse or qualifying relation of the “eligible person”. The renovation, alteration or addition to the eligible dwelling must be of an “enduring nature” and integral to the eligible dwelling. It must, of course, be undertaken to enable an eligible person to reside there with their qualifying relation. It is also important to establish a secondary unit within the dwelling which is self-contained. It must be a private residence with a private entrance, kitchen, bathroom facilities and sleeping area. It can be newly constructed or created from an existing living space. Building permits for establishing a secondary unit must be obtained and renovations must be completed in accordance with the laws of the jurisdiction in which an eligible dwelling is located. The vendor must be GST/HST registered.
Ontario Childcare Access and Relief from Expenses (CARE)
This tax credit is available to eligible families. Taxpayers can claim up to 75% of their eligible child care expenses, including services provided by child care centres, homes and camps. Families can receive up to:
$6,000 per child under the age of seven (plus a top‑up of up to $1,200 for 2021)
$3,750 per child between the ages of seven and 16 (plus a top‑up of up to $750 for 2021)
$8,250 per child with a severe disability (plus a top‑up of up to $1,650 for 2021)
The Ontario Child Care Tax Credit is calculated as a percentage of the Child Care Expense Deduction. The Child Care Expense Deduction provides provincial and federal income tax relief toward eligible child care expenses.
As announced in the 2021 Ontario Budget, the government will provide an automatic top‑up of 20 per cent of the credit entitlement for the 2021 taxation year only. This does not extend to the 2022 tax year.
Ontario Child Benefit (OCB)
The Ontario Child Benefit is a non-taxable monthly payment to help families with low incomes to provide for their children.
Ontario Community Food Program Donation Tax Credit
Starting in 2014, a new non-refundable tax credit introduced by the Ontario government allows an individual to claim 25% of the fair market value of agricultural products donated to eligible food programs in Ontario, including food banks. This credit can be claimed in addition to the charitable donation tax credit.
Ontario Property Tax Credit
The Ontario property tax credit provides relief to low- to middle-income homeowners and tenants. This tax credit can be claimed by taxpayers who were 16 years or older, resident of Ontario on December 31 of the tax year being filed and paid rent or property tax on their principal residence. You cannot claim this credit if you were under 19 years of age at the end of the tax year and lived with someone who received a Canada Child Tax Benefit payment for you in the year or claimed you as a wholly dependent person.
Effective July 2012 and for subsequent years, payments of the Ontario Sales Tax Credit, the Northern Ontario Energy Credit and the Ontario Energy and Property Tax Credit will be combined into a single benefit payment called the Ontario Trillium Benefit.
Ontario Sales Tax Credit (OSTC)
The Ontario Sales Tax Credit program is designed to help low income individuals and families with the sales tax they pay. The amount received is NOT subject to tax and depends on the family size adjusted family net income. The payment amount is adjusted for inflation each year. The amount received by single taxpayers who have an adjusted family net income of over $20,360 will be reduced by four per cent of income over $20,360. Families (including single parents) with over $25,450 in adjusted family net income will see their.payments reduced by four per cent of their income over $25,450.
Effective July 2012 and for subsequent years, payments of the Ontario Sales Tax Credit, the Northern Ontario Energy Credit and the Ontario Energy and Property Tax Credit will be combined into a single benefit payment called the Ontario Trillium Benefit.
Ontario Senior Homeowners’ Property Tax Grant
This grant is an annual amount provided to help offset property taxes for seniors with low to middle incomes who own their own home. In 2009, the maximum grant is $250. In 2010 and subsequent years, the maximum grant is $500. To be eligible, the taxpayer must
Be 64 years or older on December 31 of the tax year for which you are filing
Be a resident of Ontario on December 31 of the tax year for which you are filing
Have owned and occupied a principal residence on December 31 of the tax year for which you are filing (or owned by spouse/common-law partner) for which the taxpayer or spouse/common-law partner paid Ontario property taxes in the tax year for which you are filing
Not have been confined to a prison or similar institution on December 31 of the tax year for which you are filing
Meet the income requirements to receive the grant
Ontario Seniors’ Public Transit Tax Credit
This is a refundable credit available to seniors (65 years of age or older) who lived in Ontario by the end of the year and have incurred eligible public transit expenses incurred on or after July 1, 2017. Taxpayers can claim up to $3,000 in expenses per year ($1,500 for 2017, as only half of the year is applicable), and receive up to $450 each year ($225 in 2017).
Ontario Trillium Benefit
Effective July 2012, payments of the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit and Northern Ontario Energy Credit will be combined into a single benefit payment called the Ontario Trillium Benefit.
Ontario Trillium Benefit (OTB) Payment Schedule
New rules were implemented for the 2013 and subsequent tax years for the payment schedule of the Ontario Trillium Benefit. In general, if your OTB entitlement for the year is:
$2 or less, you will not receive a payment (in accordance with the general CRA rule of not charging or refunding amounts of less than $2).
Between $2 and $10, it will be increased to $10 and paid out as a single payment.
Between $10 and $360, and if you file your tax return by April 30th, you will receive a single payment on July 10th. If you file your return late, it will be paid in your first payment month.
Over $360 ($30/month) and if you file your return by April 30th, you will receive monthly payments (July - June) unless you opt for one lump sum which would be paid out in the final month only (June of the subsequent year).
Principal Residence Disposition Reporting Requirements
Beginning in 2016, Canada Revenue Agency is requiring taxpayers to report the sale of all properties, including those that are considered to be their primary residence and therefore eligible for a full exemption from capital gains or losses. The taxpayer must report:
a) Description of the property (address)
b) Date of acquisition
c) Proceeds of disposition
The penalty for late reporting is $100/month to a max of $8,000 and is payable even if no tax was payable on the disposition
Beginning in 2017, in all cases where a disposition of a principal residence has been realized, form T2091 or T1255 must be completed.
Retirement Income Security Benefits (RISB) for Armed Forces
Beginning in 2016, these pensions will now be eligible for pension splitting.
Search and Rescue Volunteers’ Tax Credit (SRVTC)
Starting in 2014, a new non-refundable tax credit is available for qualifying volunteers who perform at least 200 hours of eligible search and rescue services in the year. This $3,000 credit is similar to the existing Volunteer Firefighter Tax Credit (VFTC), and in fact, the qualifying volunteer hours can be combined for both types of volunteer activity, however, only one of the tax credits can be claimed.
TFSA (Tax-Free Savings Account)
Contributing to a Tax-Free Savings Account allows taxpayers to set money aside, tax-free, throughout their lifetimes. Although contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible, the income generated in the TFSA is tax-free when withdrawn. To contribute to a TFSA, the taxpayer must be a resident of Canada, at least 18 years of age, and have a valid social insurance number (SIN). The lifetime contribution limit for 2024 is $95,000.
Tradesperson’s Tools Expenses
Taxpayers may deduct up to $500 from their net income for eligible tools purchased to earn employment income as a tradesperson so long as the total expense amount exceeds the annual threshold ($1,245 for 2020). This cost includes and GST, PST, or HST paid.
Volunteer Firefighters Tax Credit
Starting with the 2011 tax year, a non-refundable tax credit equal to 15% of $3,000 ($450) is available for volunteer firefighters who have completed at least 200 hours of volunteer firefighting services with one or more fire departments in the year.