Do you want to reduce the money that goes out the door? Tax credits can help! Let's review what could work for you. Remember, whether you use a service like Liberty Tax or H&R Block, or work with an accountant, their software typically identifies the credits you're eligible for, as long as you provide accurate information. If you're doing your own taxes, make sure to carefully check each page and confirm you've covered all your bases. It's always a good idea to review the results, as mistakes can happen during preparation.
A-Z Tax Credits that can help you save:
Age Amount Credit: This amount if you were 65 years of age or older on December 31, 2024, and your net income (line 23600 of your return) is less than $102,925. Learn more here.
B.C. Renter's Tax Credit: A renter's tax credit based on annual income was introduced in the 2023 tax year. For the 2024 tax year, this tax credit will give help renter individuals and families with an adjusted income of $63,000 or less. Those between $63,000 and $83,000 may receive a reduced amount. You can claim it on form BC479 British Columbia Credits. Learn more here.
Canada Caregiver Credit Expanded: This credit helps reduce your tax burden if you're providing essential care, like food, shelter, and clothing. You may qualify for the non-refundable tax credit if you care for:
A spouse or common-law partner with a physical or mental impairment.
Children or grandchildren with an impairment, or
Parents, grandparents, siblings, aunts, uncles, nieces, or nephews (if they reside in Canada).
Canada Training Credit: The Canada training credit (CTC) is a refundable tax credit available to help Canadians with the cost of eligible training fees. You were at least 26 years old and less than 66 years old at the end of the year. You can claim the CTC for tuition and other fees paid for courses that you took in the year. Learn more here.
Disability Tax Credit (DTC): For individuals with a severe and prolonged impairment, the DTC offers a non-refundable credit to reduce your taxes and provide extra support. Learn more here.
Disability Supports Deduction: This deduction is for those with a physical or mental impairment who paid for certain medical expenses for work, school or grant-funded research. Learn more here.
Education and Tuition Tax Credit: Students or those paying for their education may qualify for tax credits related to tuition fees, textbooks, and other school-related expenses. Learn more here.
Eligible Dependent Credit: You may be able to claim the amount for an eligible dependent if, at any time in the year, you supported an eligible dependent and met conditions. Learn more here.
GST/HST Credit: This credit helps individuals and families with low or modest incomes offset the cost of GST/HST they pay on goods and services. Learn more here.
Home Accessibility Tax Credit: A refundable tax credit for renovations to create a secondary unit for seniors or adults with disabilities. Learn more here.
Medical Expense Tax Credit: If you or a dependent have significant medical expenses, you may be able to claim them as a credit to reduce your taxable income. Learn more here.
Multigenerational Home Renovation Tax Credit (MHRTC): This is a refundable tax credit. Your renovation and the people who currently live, or plan to live, in the existing dwelling and secondary unit must be 65 years of age or older at the end of the renovation period tax year or 18 to 64 years of age and eligible for the disability tax credit (DTC) at any time in the renovation period tax year (or would be if the attendant care restriction were not counted). You can claim up to $50,000 in qualifying expenditures for each qualifying renovation that is completed. This means that the 15% tax credit will result in a maximum amount of $7,500. Note that, for homeowners, such self-contained units can affect the principal residence exemption, check with your accountant. Learn more here.
Pension Income Amount: You may be able to claim up to $2,000 if you have eligible pension, superannuation or annuity payments. Learn more here.
Pension Income Splitting: with their spouse or common-law partner. You and your spouse or common-law partner may be able to jointly elect to split your eligible pension income if you meet all of the requirements. This can reduce the total household tax burden. Learn more here.
Short-Term Rental Expenses: If you rent a residential property for short periods, you must comply with provincial or municipal laws or else the CRA will deny your expense deductions. The transitional relief is available if you were compliant by Dec. 31, 2024, you are deemed compliant for the entire 2024 tax year. Learn more here.
Spouse Or Common-Law Partner Amount: You might be eligible if at any time in the year, you supported your spouse or common-law partner and their net income was less than your basic personal amount.
Transfers from your spouse or common-law partner or dependent: If they do not need to use them to reduce their federal tax to zero there are some amounts that you may use to reduce your taxes. Ask you tax preparer more about these.
More Tax Credits for Your Friends & Family
Canada Child Benefit (CCB): A tax-free monthly payment to families with children under 18 to help with the cost of raising them. The amount is based on income and family size. Eligible families will receive a B.C. family benefit bonus payment starting July 2024. Starting July 2025, payments will return to regular levels. Learn more here.
Also, the Canada Child Benefit (CCB) and the Child Disability Benefit will now be paid for six months after a child’s death, starting in January 2025. The CCB recipient must notify the Canada Revenue Agency (CRA) of their child’s death before the end of the month following the month of their child’s death.
Registered Education Savings Plan For All Children: Beginning in April 2028, the Government of Canada will automatically open a Registered Education Savings Plan (RESP) to receive the Canada Learning Bond (CLB) for an eligible child who is born in 2024 or later, has a valid Social Insurance Number (SIN) and is not already named as a beneficiary of an RESP by age 4. With proper planning and contributions, RESP benefits can add thousands of dollars to your child’s education savings, giving them a solid financial foundation for their future. Let me know if you'd like specific guidance! Learn more here.
Tax Credits: Additional Monthly Income at 65
If you've chosen homemaking as your career, haven’t had the opportunity to invest or contribute to a work pension, or had health issues that kept you from the workforce there may still be a way to secure some additional monthly income. You might think it’s a small amount, but it could be the perfect solution to cover expenses like car insurance. Every little bit helps, and it could provide some extra financial peace of mind.
Guaranteed Income Supplement: This tax-free monthly benefit is for those 65+ who receive old age security OAS and who have low incomes.
BC Senior's Supplement: This is a monthly amount provided to low-income senior residents of British Columbia who already receive Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). It is a top-up for those with very low income. If you’re eligible, you’ll start to get the Senior’s Supplement one month after your first OAS/GIS payment. You don't need to apply. Payment is automatic. The annual income (excluding OAS and GIS) limit to qualify is up to $2,280 for single seniors and $4,896 for couples. Learn more here.
BC Senior’s Supplement Calculator here. Try out this useful tool to help you budget. It’s simple to use and can give you the clarity you need to make informed financial decisions.
Senior’s Supplement 2024 (Federal Government): This tax-free, direct deposit of $1,200 was an inflation relief measure provided by the Canada Revenue Agency (CRA) to help senior citizens cope with the financial pressures of rising prices. This payment is in addition to the regular OAS benefits.
Proactive Steps to Stay on Top of Your Taxes
Taking these proactive steps will help you avoid surprises and keep your finances in check:
Update Personal Information: Ensure your address, banking details, and other personal information with CRA are up-to-date. You can do this easily through your My Service Canada Account (MSCA).
File Your Taxes: Timely filing is crucial, as CRA uses your latest tax return to assess eligibility and determine your income levels. Make sure you submit it on time to avoid delays in receiving benefits.
Monitor CRA Announcements: Stay informed about the payment schedule and other updates from CRA. See the 2025 schedule here.
Plan Ahead: Book a session with Fenske Financial Coaching to be ready!
Achieving financial success means looking at every aspect of your financial life. From investments and taxes to estate planning and day-to-day budgeting, a comprehensive approach helps you stay on track and aligned with your goals. Let’s work together to build a strategy that fits your unique needs—because financial planning is about more than just numbers; it’s about your life.
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