Canada Income Tax Credits And Deductions
We have compiled various personal income tax credits and deductions available to Canadian taxpayers for 2020. Basic difference between tax credit and tax deduction is that tax deduction reduces your taxable income and tax credit reduces your income tax. They have been grouped under Deduction, Federal Credit and Province specific credit for easy understanding.
Children deduction and income tax credit have been grouped together for families with children under children tax credit. Most of the children tax credit and deductions are available for children under 18. Similarly, income tax credits for dependents have been grouped together under dependent tax credit. For each deduction/credit, we have listed the line number on tax return, eligibility criteria (who can claim), maximum limit(if any), carry-forward(yes/no), transfer option etc. Our goal is to help you maximize your tax refund by using the right deduction/credit for right tax year. For more details on any income tax credit and deduction in Canada, you can contact us or visit CRA site.
Income tax deduction to reduce your Canadian taxable income:
Line 208 – RRSP / pooled registered pension plan (PRPP) deduction:
Line 210 – Split pension deduction:
Line 212 – Annual union, professional, or like dues:
Line 214 – Child care expenses:
Line 215 – Disability supports deduction:
Line 217 – Business investment loss:
Line 219 – Moving expenses:
Line 220 – Support payments made:
Line 221 – Carrying charges and interest expenses:
Line 222 / 310 / 5828 – Deduction for CPP contributions on other earnings:
Line 224 – Exploration and development expenses:
Line 229 – Other employment expenses:
Line 232 – Other deductions:
Line 249 – Security options deductions:
Line 251 – Limited partnership losses of other years:
Line 252 – Non-capital losses of other years:
Line 253 – Net capital losses of other years:
Line 254 – Capital gain deduction:
Line 255 – Northern residents deductions (Northern Tax Allowance):
Tax credits to reduce your tax payable:
Line 300 / 5804 – Basic personal amount:
Line 301 / 5808 – Age amount:
Line 303 / 5812 – Spouse or common-law partner amount:
Line 308 / 5824 – CPP or QPP contributions through employment:
Line 312 / 5832 – Employment insurance premiums through employment:
Line 314 / 5836 – Pension income amount:
Line 316 / 5844 – Disability amount (for self):
Line 319 / 5852 – Interest paid on your student loans:
Line 323 / 5856 – Your tuition, education, and textbook amounts:
Line 330 / 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2001 or later:
Line 349 / 5896 – Donations and gifts:
Line 362 – Volunteer firefighters’ amount or Line 395 – Search and rescue volunteers’ amount:
Line 363 – Canada employment amount:
Line 369 – Home buyers’ amount:
Line 398 – Home accessibility expenses:
Line 405 – Federal foreign tax credit:
Line 410 – Federal political contribution tax credit:
Line 414 – Labour-sponsored funds tax credit:
Line 419 – Labour-sponsored funds tax credit:
Line 425 – Federal dividend tax credit:
Line 468 and 469 – Eligible educator school supply tax credit:
Provincial political contribution tax credit:
If you supported an eligible dependent, following CRA approved dependent tax credits can help you reduce your tax payable on your Canadian tax return. These tax credits can be claimed on all provincial tax return as well. To claim a dependent, dependent income need not be zero.
Line 304 – Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older:
Line 305 / 5816 – Amount for an eligible dependant:
1) your child, grandchild, brother or sister and they are either under 18 years of age or they have mental or physical impairment.
2) your parents or grandparents.
Line 331 / 5872 – Allowable amount of medical expenses for other dependants:
Line 318 / 5848 – Disability amount (DTC) transferred from a dependant:
Line 307 / 5820 – Canada caregiver amount for other infirm dependants age 18 or older:
1) the person is 18 years or older, and
2) person has mental or physical impairment
3) person is your (or your spouse’s) parent, grandparent, brother, sister, aunt, uncle, niece, nephew and
4) person is not your spouse or or common-law partner or an eligible dependant for whom an amount is claimed on line 305.
Having kids has its own tax advantage in Canada in the form of these federal tax credits for children which reduces your income tax payable to CRA.
Line 313 / 5833 – Adoption expenses:
Line 367 – family caregiver amount for children under 18 years of age:
Line 324 / 5860 – Tuition, education, and textbook amounts transferred from a child:
Province specific children tax credit
Line 5839 – Children’s fitness amount:
Line 5841 – Children’s arts amount:
Line 5831 – Child care amount:
Line 5823 – Amount for young children:
Line 5823 – Amount for young children:
Line 5821 – Amount for dependent children born in 2000 or later:
Province specific tax credit
Alberta tax credit
Line 5844 – Disability tax credit amount (for self) in Alberta:
Alberta stock savings plan tax credit:
British Columbia tax credit
Line 5844 – Disability tax credit amount (for self) in British Columbia:
Farmers’ food donation tax credit:
BC sales tax credit:
British Columbia employee share ownership plan tax credit:
British Columbia employee venture capital tax credit:
British Columbia mining flow-through share tax credit:
Seniors homes renovation tax credit:
Venture capital tax credit:
Mining exploration tax credit:
Training tax credit:
Manitoba tax credit
Line 5844 – Disability tax credit amount (for self) in Manitoba:
You can claim $6,180 if you are eligible to claim line 316 on federal form. If you are under 18 years of age, you can claim an additional amount of upto $3,605 depending on your income.
Line 5839 – Young Adult fitness amount:
You can claim upto a maximum of $500 per young adult (for yourself and your spouse) for registration fees paid in the year if you are under 25 years at the end of the year. You can also claum this for child under 18 years of age. Young adult fitness credit is not available for any other province. This can not be carried forward.
Fertility treatment tax credit:
You can claim this credit if you or your spouse or common-law partner incurred eligible medical expenses for fertility treatment and paid them in 2018.
Line 449 – Client action incentive:
Manitoba residents may be eligible to claim the new federal refundable credit for the climate action incentive. If you have a spouse, only one of you can claim for the family. You can also claim it for eligible child under 18. Remember to claim it in Credit tab.
Manitoba mineral exploration tax credit:
You can claim this credit if you invested in flow-through shares and Manitoba mining flow-through share expenditures have been renounced to you. Check box 144 on your T101 slip. You can carry forward unused credit to future year. You can also carry back to previous 3 years.
New Brunswick tax credit
Line 5844 – Disability tax credit amount (for self) in New Brunswick:
You can claim $8,131 if you are eligible to claim line 316 on federal form. If you are under 18 years of age, you can claim an additional amount of upto $4,743 depending on your income.
Line 449 – Client action incentive:
New Brunswick residents may be eligible to claim the new federal refundable credit for the climate action incentive. If you have a spouse, only one of you can claim for the family. You can also claim it for eligible child under 18. Remember to claim it in Credit tab.
Labour-sponsored venture capital fund tax credit:
You can claim upto $2,000 for this credit if you have received Certificate NB-LSVC-1 for your investment in a labour-sponsored venture capital corporation, at any time in 2018 (and did not claim them on your 2017 tax return) or in the first 60 days of 2019.
Small business investor tax credit:
You can claim this credit if you have received Certificate NB-SBITC-1 for your investment in a small business or you have unused Small business investor tax credit from previous years.
Newfoundland and Labrador tax credit
Line 5844 – Disability tax credit amount (for self) in Newfoundland and Labrador:
You can claim $6,240 if you are eligible to claim line 316 on federal form. If you are under 18 years of age, you can claim an additional amount of upto $2,936 depending on your income.
Resort property investment tax credit:
You can claim this credit if you have received Certificate NL RPITC for your investment in eligible shares or you have unused resort property investment tax credit from previous years. Unused credit can be carried forward upto 7 years and it can be carried back upto 3 years.
Direct equity tax credit:
You can claim this credit if you have received Certificate NL DETC-1 for your investment in eligible shares or you have unused direct equity tax credit from previous years. Unused credit can be carried forward upto 7 years and it can be carried back upto 3 years.
Line 5830 – Volunteer firefighters’ amount:
You can claim the same amount here which you claimed on line 362 of schedule 1.
Nova Scotia tax credit
Line 5844 – Disability tax credit amount (for self) in Nova Scotia:
You can claim $7,341 if you are eligible to claim line 316 on federal form. If you are under 18 years of age, you can claim an additional amount of upto $3,449 depending on your income.
Food bank tax credit for farmers:
Farmers can claim this credit for qualifying food donation to an eligible charity.
Labour-sponsored venture capital fund tax credit:
You can claim upto $2,000 for this credit if you have received Certificate NSLSV for your investment in a labour-sponsored venture capital corporation, at any time in 2018 (and did not claim them on your 2017 return) or in the first 60 days of 2019.
Direct equity tax credit:
You can claim this credit if you have received Certificate NSETC-1 for your investment in eligible shares or you have unused direct equity tax credit from previous years.
Nova Scotia volunteer firefighters and ground search and rescue tax credit:
You can claim $500 in tax refund if you were a volunteer firefighter or a ground search and rescue volunteer for a minimum of six months in 2018 and did not receive any salary/wages for your work.
Ontario tax credit
Line 5844 – Disability tax credit amount (for self) in Ontario:
You can claim $8,365 if you are eligible to claim line 316 on federal form. If you are under 18 years of age, you can claim an additional amount of upto $4,879 depending on your income.
Line 449 – Client action incentive:
Ontario residents may be eligible to claim the new federal refundable credit for the climate action incentive. If you have a spouse, only one of you can claim for the family. You can also claim it for eligible child under 18. Remember to claim it in Credit tab.
Ontario focused flow-through share tax credit:
You can claim this credit for qualifying expenses in a mining operation in Ontario.
Ontario senior homeowners’ property tax grant:
You need to apply for the Ontario senior homeowners’ property tax grant (OSHPTG) if, on December 31, 2013: you were 64 years of age or older; and you owned and occupied a principal residence in Ontario, for which you or someone on your behalf paid property tax for 2018.
Ontario trillium benefit(OTB):
Based on your net income, you may be eligible for Ontario trillium benefits if you live in Ontario. It includes the Ontario sales tax credit, the Ontario energy and property tax credit, and the Northern Ontario energy credit. To get Ontario sales tax credit, you (or your spouse, if applicable) must apply for GST/HST credit while filing your tax return. To get Ontario energy and property tax credit, and the Northern Ontario energy credit, you have to apply under Ontario trillium benefit. Both spouses can claim Ontario trillium benefit if they occupied separate principal residences on December 31, 2018 for medical reasons. You can now elect to receive your 2019 Ontario trillium benefit in one payment in June 2020 instead of receiving it monthly from July 2019 to June 2020. If dependents have income, they should file their own return to claim applicable Ontario trillium benefit.
Prince Edward Island tax credit
Line 5844 – Disability tax credit amount (for self) in Price Edward Island:
You can claim $6,890 (equivalent of $675 as non-refundable tax credit ) if you are eligible to claim line 316 on federal form. If you are under 18 years of age, you can claim an additional amount of upto $4,019 (equivalent of $394 in non-refundablt tax credit) depending on your income.
Line 5850 – Teacher school supply amount:
Teacher( or a member of the program staff of an early learning and child care centre) can claim up to $500 of eligible school supplies expenses on their income tax return in Prince Edward Island. Expense for school supplies is not tax deductible in any other province (BC, AB, NS,NL,ON,MB,SK,NB). This is not a deduction to reduce your income. Instead, it gives you a non-refundable tax credit of up to $49 to reduce your tax amount.
Equity tax credit:
You can claim upto $7,000 for this credit if you have received Certificate PE-ETC for your investment in eligible shares at any time in 2017 (and did not claim them on your 2015 return) or in the first 60 days of 2017 or you have unused equity tax credit from previous years. You can carry forward unused credits seven years.
PEI volunteer firefighter tax credit:
You can claim $500 here if you claimed an amount on line 362 of schedule 1.
Saskatchewan tax credit
Line 5844 – Disability tax credit amount (for self) in Saskatchewan:
You can claim $9,464 if you are eligible to claim line 316 on federal form. If you are under 18 years of age, you can claim an additional amount of upto $9,464 depending on your income.
Line 5822 – Senior supplementary amount:
You can claim $1,292 for this credit if you were 65 years of age or older in 2018.
Line 5837 – Home buyers’ amount:
You can claim an amount of $10,000 for the purchase of a qualifying home made after December 31, 2018 (closing after this date) if you are eligible to claim an amount on line 369 of schedule 1 and your house is registered in Saskatchewan.
Line 449 – Client action incentive:
Saskatchewan residents may be eligible to claim the new federal refundable credit for the climate action incentive. If you have a spouse, only one of you can claim for the family. You can also claim it for eligible child under 18. Remember to claim it in Credit tab.
Saskatchewan farm and small business capital gains tax credit:
If you reported capital gains in 2018 from the disposition of qualified farm property or qualified small business corporation shares, you might be eligible for this tax credit. It will be calculated automatically by our program.
Labour-sponsored venture capital fund tax credit:
You can claim upto $1,000 for this credit if you have received slip T2C (Sask.) for your investment in a labour-sponsored venture capital corporation at any time in 2018 (and did not claim them on your 2017 return) or in the first 60 days of 2019.
Saskatchewan mineral exploration tax credit:
You can claim this credit if you have received SK-METC (Mineral Exploration Tax Credit Certificate)for 2018 from mining exploration corporations that incurred qualifying expenses in Saskatchewan for your investment in eligible shares or you have unused mineral exploration tax credit from previous years. Unused mining credit can be carried forward upto 10 years and it can be carried back upto 3 years.
Saskatchewan graduate tuition tax credit:
You can claim this credit if you completed an eligible program at an eligible educational institution; and obtained a Graduate Retention Program Eligibility Certificate from the Saskatchewan Ministry of Advanced Education. If you do not need all your Saskatchewan graduate tuition tax credit to reduce your 2017 provincial tax to zero, you can carry forward unused credit for nine years after the year of graduation.
We have consolidated other tax credit questions asked by Canadian taxpayers like you. If you do not find an answer, ask us and we will add it for you.
Can Canadian senior claim living expenses paid to family member?
No, there is no such credit.
Can both spouses apply for the Ontario Trillium Benefits(otb)?
Yes, both spouses can claim Ontario trillium benefit if they occupied separate principal residences on December 31 of tax year for medical reasons.
Can disability for self be claimed under federal and ontario?
Yes. Once you enter the details for disability in Credit tab, program will automatically calculate the credit for both federal and provincial form.
Can grandparents claim childrens fitness amounts on income tax in Saskatchewan?
No, only parents can claim this.
Can I claim a tax deduction for a disabled dependent who I supported for part of a year in canada?
Yes, you can claim disability credit as long as dependent was present in Canada at any time during the tax year and meets all other requirements.
Can I claim additional deduction for children under the northern residents allowance?
No, there is no addition deduction for children under northern residents allowance.
Can I claim Alberta income tax if living in NS?
Yes, if you were living in Alberta on 31st Dec of the tax year.
Can I claim investment expenses for foreign dividend paying stocks in Canada?
Yes. If you have those stocks in a non-registered account in Canada, you can claim investment expenses.
Can I claim kids school supplies, uniforms in Ontario?
No, there is no such credit.
Can I claim my childs sports registration as a tax deduction?
Yes, you can claim sports registration fee as children fitness credit or art credit in British Columbia or Manitoba depending on the type of program .
Can I claim my son who is 19 as a dependant in Ontario?
You can claim your 19 year old son as dependent if you did not support your spouse and your son has a mental or physical impairment.
Can I claim travel amount if I do not claim Northern residents deduction?
No, there is no separate claim for only travel amount. It has to be claimed together with Norther residents deduction.
Can I get paid for caring for my parents in Newfoundland?
Not directly. You can claim certain dependent tax credit for taking care of your parents.
Can I use tuition deductions transferred from child for tax refund?
Yes, you get non-refundable tax credit for the transferred amount. Remember to enter transferred amount under your child profile in Credit tab.
Can my permanent residence be NL and work in Alberta and claim northern living allowance?
Yes, you can claim northern resident deduction if you lived in a prescribed zone for a continuous period of at least six consecutive months..
Can parents claim for school supplies on family allowance?
No, there is no such tax credit.
Can person paying child support claim dependent?
Yes, dependent claim can also be split with spouse or can be claimed by one of the parents.
Can Saskatchewan teachers claim purchases as tax deductible?
yes, Eligible educator school supply credit is available to everyone.
Can teachers claim buying their own supplies on income tax?
Yes. teachers can claim this as Eligible educator school supply credit on their income tax return.
Can you buy RRSP for a family member and get the tax credit in British Columbia?
You can buy RRSP for your spouse and claim tax credit on your tax return as long as it is still within your available RRSP limit. You can not claim this for any other family member.
Can you claim a child for spousal (dependent) amount as well as child tax credit in Nova Scotia?
Yes, you can claim both dependent amount as well as child tax credit for your child if you are not claiming spousal amount for your spouse.
Can you claim a dependent child older than 18 years in college (post secondary) as equivalent to spouse canada?
You can claim your child as dependent if you are not claiming spousal amount and your child is either 18 years of age or has a physical or mental impairment.
Yes, active family benefit is provincial tax credit and can be claimed for the same expense claimed on line 365.
Can you claim baby clothing on your taxes in ontario?
No, there is no such tax credit.
Can you claim first 60 days of tuition in previous tax year?
No, tuition expense must be paid in tax year.
Can you claim line of credit interest on taxes in canada?
Yes, you can claim these interest as carrying charges for investment if you have used the money to buy investment and expect income out of the investment.
Can you claim northern tax allowance in Newfoundland?
Yes, taxpayers residing in any of the prescribed zones in Alberta, BC, Manitoba, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, SasKatchewan, Yukon, Nunavut and Northwest territories can claim northern tax allowance.
Can you claim permanent residence legal fees on tax return in Canada?
No, there is no tax credit for this.
Can you claim the same child for 305 and 367 in BC?
Yes, you can claim it in all provinces.
Can you claim your child as a dependent and have them file income tax in canada?
Yes. Your dependent credit amount will be reduced by the income of your child.
Can you claim tuition if EI funds you?
Yes once you receive your T2202 forms from your institute.
Can a dependent on someone else tax return claim the first time homebuyer credit?
Technically, anyone can claim first time homebuyer credit on their own tax credit if they meet the eligibility criteria. However, if your income is not more than personal tax amount, you will not get any benefit of homebuyer amount.
Do I have to use my tuition amount for deduction when I have more than enough donation?
No, you can transfer upto $5000 to your parent/grandparents/spouse/common-law partner. You can also carry forward the unused tuition amount indefinitely for future tax years.
My net income is nil. Should I claim home buyer amount?
There is no tax benefit for you for claiming home buyer amount if you have no income. Your spouse can also claim the home buyer amount.
My elderly parent moved to live with me. Can we deduct the moving expenses?
No. You can only claim moving expenses if you moved for employment or attending a school.
Can each spouse claim the basic Ontario tax reduction?
Yes, each spouse can claim the basic Ontario tax reduction. However, reduction for dependent children and dependent with medical or physical infirmity can be claimed by the spouse with higher net income.
Can you carry over support payments to next tax year?
No, you have to report all support payments received in the current tax year.
Can you carry forward unused medical amount?
Not directly. However, CRA allows you to pick any 12 month period for medical amount claim as long as it ends in the tax year. You can adjust the period to carry forward your medical amount by at least 364 days.
Can I claim both the federal fitness amount and the Ontario fitness amount with the same money?
Yes.
Does claiming parents as dependents reduce their pension in British Columbia?
No. However, dependent credit amount is reduced by their pension income.
Does the SK graduation tax credit just reduce your tax payable or is it a 2000.00 reimbursement?
First, it reduces your tax payable and left over tax credit is returned to you as income tax refund. Effectively, you can consider it as a $2000 reimbursement.
How do I claim my child on my tax return?
Enter your child as family member in profile tab with correct date of birth and our program will calculate the eligible age related tax credit. For other credits, you will have to enter specific amount in Credit tab.
How much tax refund would I get for unused federal and ontario tuition education amount?
Unused tuition amount gives you non-refundable tax credit which will reduce your tax owing and increase your tax refund. Actual refund amount will depend on your income and unused tuition amount.
How do I use the provincial tuition credit when I moved from Ontario to Alberta or NL to NS?
Schedule 11 of the province explains the usage of unused provincial tuition credit from another province. S11 for Alberta allows you to use unused federal tuition amount as unused provincial tuition amount irrespective of which province you moved from.
If I have more than one T4, do I combine them on my Canadian tax?
No. You should enter each T4 separately. Our program will combine and calculate your tax return appropriately.
If I work in Alberta but went to school in New Brunswick, how do I claim on income tax?
S11 for Alberta allows you to use unused federal tuition amount as unused provincial tuition amount irrespective of which province you moved from.
If you have a $10,000 carry-forward student loan credit amount, how do you calculate your actual tax savings??
Tax credit is available for the interest paid on student loan. If you paid 5% interest on the loan, you will get a tax credit of $75 (15% of $500) to reduce your tax owing.
If your 2013 net income is less than 11038, do you claim the amount or transfer to your spouse?
There is no need to transfer anything. Your spouse can claim a spousal amount of 11,038 minus your net income.
I am no longer in school but still have unused tuition tax credit. How do I claim that?
You can carry forward your unused tuition tax credit indefinitely for future tax years and claim tax credit against your future income.
How much tuition can be claimed per year from previous years?
There is no maximum limit on claiming unused tuition amount. You should report all unused tuition credit and program will use the applicable credit and leave the remaining tuition credit to be used for future years.
How do you claim your children on scedule one and form 428?
You need to enter your child details under profile as family member. Our program will apply the eligible age related credit for schedule one and form 428 and show you in tax summary.