10 Little-Known Tax Deductions Your Clients May Qualify For

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10 Little-Known Tax Deductions Your Clients May Qualify For

The best way to look like a superstar to your clients is to introduce income tax deductions they may qualify for but didn’t even know existed! We’ve compiled 10 commonly missed deductions that you can use to impress your clients this tax season:

  1. Medical expenses: Medical expenses cover more than medical expenses for you, your partner, and your minor children. Eligible medical tax credits covers many things, such as the additional expense your client pays for specialized food as recommended by a doctor. If your clients have expenses that are the result of a diagnosed condition, they might qualify for this tax credit.
  2. Disability tax credit: This tax credit is worth approximately $1,500 for an adult. The credit for children is even higher, and in many cases covers a wide variety of children’s physical and mental conditions including ADD, ADHD, Asperger’s Syndrome, anxiety disorders, autism, bipolar disorder, diabetes (type 1 or 2), epilepsy, FASD, learning disabilities, or manic depression.
  3. Charitable and political donations: Your clients can receive a 15% tax credit on the first $200 and a 29% credit on charitable donations above $200, up to a maximum of 75% of their income. They can also receive tax credits for donations made to federal and provincial political parties and candidates.
  4. Eligible dependant amount: This tax credit may apply if at any time during the year your client was single, divorced, separated, or widowed and was supporting a person who lived with them in a home that they maintained.
  5. Tax credits for children: For clients who have children, there are many tax credits available if your client has dependent children under 18, including childcare expenses. Also, new adoptive parents can claim tax credits for adoption expenses.
  6. Public transit passes: Your client can get tax credits on certain transit passes, such as:

    ● Monthly (or longer) passes
    ● 5-day passes accumulated so that they were entitled to at least 20 days of unlimited travel within a 28-day travel period
    ● Electronic passes when used to make 32 one-way trips within a 31-day period

  7. Moving expenses: Students who move to study in a full-time program can claim tax credits on their moving expenses. Also, if your client moves to start a new job or launch a business, they can get tax credits for moving expenses as well.
  8. Student loan interest: Graduates are eligible for a tax credit for the interest they pay on federal and provincial student loans, but not on loans from financial institutions or private lenders, or loans consolidated with other loans.
  9. Homebuyer’s tax credit: If your client has not lived in a home they owned (or owned by their partner) in any of the four preceding years, and has purchased a home during the previous tax year, they might be eligible for this tax credit.
  10. Carrying charges: These charges include some of your client’s financial investment advisor fees (but not their commissions) and safety deposit box rental fees.

If you’d like more details about these tax credits, or want more strategies that will help your clients further protect their wealth, contact us today.

Want to discover the ultimate independent advisor’s experience? Connect with Carte Wealth Management!

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