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10 Hidden Tax Benefits Canadians Are Missing Out On

Irfan Ameer
Irfan Ameer
9 Min Read

Let’s face it—nobody loves tax season. But if you’re not taking advantage of the tax benefits available in Canada, you could be leaving money on the table. According to a study by the Canadian government, many Canadians don’t realize they qualify for certain tax credits. If you’re filing taxes this year, you must know about these hidden tax benefits that could save you a lot of money.

Contents
What are hidden tax benefits?Canada Workers Benefit: Get Extra Cash for Working HardGST/HST Credit: Pay Less on Everyday PurchasesCanada Child Benefit: More Money for ParentsCanada Dental Benefit: Affordable Dental Care for FamiliesProvincial Tax Credits: Extra Savings from Your ProvinceThe Basic Personal Amount: Lower Your Tax Bill AutomaticallyTuition Tax Credits: Students, Don’t Miss OutCanada Training Credit: Get Paid for LearningTax Credits for Seniors: Save More in RetirementPension Income Splitting: Lower Taxes for SeniorsDon’t Miss Out on Your Tax Benefits

Tax season doesn’t have to be a headache. Here are ten tax benefits most Canadians miss out on—but you don’t have to.

What are hidden tax benefits?

In simple terms, hidden tax benefits are credits or deductions you can claim when filing taxes. But they’re often missed because people don’t know about them or don’t think they qualify. These benefits help reduce the tax you owe or even refund you. And who doesn’t like more money in their pocket?

Let’s look at some of the key tax benefits you should be claiming.

Canada Workers Benefit: Get Extra Cash for Working Hard

The Canada Workers Benefit (CWB) is a big one. It’s a refundable tax credit for low-income workers in Canada. That means if you earn below a certain amount, you could get up to $1,428 back on your taxes.

But here’s where a lot of people miss out: Starting in 2023, there’s something called the Advanced Canada Workers Benefit (ACWB). This gives you advance payments of 50% of the benefit, spread out over the year. If you’re eligible for the CWB, you might want to look into the ACWB as well.

GST/HST Credit: Pay Less on Everyday Purchases

If you haven’t heard of the GST/HST credit, it’s time to take notice. It’s designed to help lower-income Canadians offset the cost of paying federal taxes on goods and services. The credit can be anywhere from $496 to $650, depending on your income.

Once you hit a certain income level, the credit starts to phase out. But if you’re in the lower to moderate-income range, this credit could make a noticeable difference, especially with the rising cost of living in Canada.

Canada Child Benefit: More Money for Parents

Raising kids isn’t cheap. That’s why the Canada Child Benefit (CCB) is such a valuable tax benefit for Canadian families. If you’ve got kids under 18, you might be eligible for up to $7,437 per child each year. This money is tax-free and is meant to help parents cover the high costs of raising children.

If your child has a disability, you can also get an additional $3,173. To make sure you keep getting this benefit, though, it’s important to file your taxes on time every year.

Canada Dental Benefit: Affordable Dental Care for Families

Dental care is expensive. But for families making under $90,000 a year, the Canada Dental Benefit can help lower those costs. This is a temporary benefit aimed at helping families with children under 12 who need dental work. If you’ve got kids who need a visit to the dentist, this is something you definitely want to take advantage of.

Applying is easy—you can do it online, through your CRA My Account, or by phone. Don’t wait until it’s too late to claim it.

Provincial Tax Credits: Extra Savings from Your Province

Don’t forget about provincial tax credits. On top of the federal benefits, most provinces have their own tax credits that could save you even more. For example, if you live in Ontario, the Ontario Trillium Benefit offers a tax credit of up to $265 depending on your income.

In Quebec, there’s the Quebec Family Allowance, which works like the Canada Child Benefit, but is for Quebec residents. They also have the Solidarity Tax Credit, which helps low-income families with everyday costs. If you’re living in Quebec, make sure to check out these extra tax benefits.

The Basic Personal Amount: Lower Your Tax Bill Automatically

You’ve probably heard of the Basic Personal Amount (BPA), but did you know it’s one of the easiest ways to reduce your tax bill? The BPA allows you to claim a non-refundable credit that lowers your taxes. In 2023, the federal amount is $15,000, but every province has its own rate.

It’s automatically applied when you file your taxes, but it’s still worth knowing because it can make a big difference, especially if you’re in a lower income bracket.

Tuition Tax Credits: Students, Don’t Miss Out

If you’re a student or have a student in your family, the tuition tax credit is a must-claim. You can deduct up to $5,000 in tuition fees per year. The great thing about this benefit is that if you don’t use all of it, you can carry it forward to future years or transfer it to a spouse or parent.

Students often miss this benefit because they think it’s too complicated. But it’s not. All you need is the T2202 form from your school to get started.

Canada Training Credit: Get Paid for Learning

Here’s another big one for students and those looking to upgrade their skills—the Canada Training Credit (CTC). This credit gives you money back for eligible training expenses. It’s available to people aged 25 to 65. If you’ve got eligible expenses and your CTC limit is above zero, you could get a nice refund when you file your taxes.

Tax Credits for Seniors: Save More in Retirement

Seniors, listen up. There are several tax benefits just for you. One is the Home Accessibility Tax Credit (HATC). If you’re over 65 and have made any modifications to your home to help with mobility, you can claim this credit. It helps cover the costs of things like installing ramps or widening doorways.

Another one to watch for is the Age Amount Tax Credit. If your income is below $42,335, you can claim up to $8,396 on your tax return. That’s a big amount for seniors living on a fixed income.

Pension Income Splitting: Lower Taxes for Seniors

Seniors can also take advantage of pension income splitting. This allows you to transfer up to 50% of your pension income to your spouse or common-law partner. It can lower the overall tax you owe as a household, which is a smart move for many senior couples.

Don’t Miss Out on Your Tax Benefits

Filing taxes doesn’t have to be stressful, and it definitely shouldn’t mean missing out on money you’re entitled to. Whether it’s the Canada Workers Benefit, the GST/HST Credit, or even smaller provincial credits, there’s a lot of cash out there waiting for you to claim it.

Make sure you’re getting every tax benefit you qualify for. If you’re unsure, consult with a tax professional or use tools like TurboTax to make the process easier. Remember, filing your taxes is not just about meeting deadlines—it’s about maximizing the money you keep in your pocket.

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