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Canadian tax season isn't officially on until January 2023.
But you can still learn something new before it arrives, such as tax deductibles you never knew existed.
Of course, these are always wonderful surprises.
Who doesn't need to save a few bucks here and there? When you can do it without making compromises, such as a budget cut, that's even much better. Besides, the year is almost over. It can't be too early to start organizing those receipts.
Don't be one of those responsible for $1.7 billion worth of unclaimed Canadian social benefits yearly. Start by reading about these five lesser-known tax deductibles you'll be happy to discover today.
Suppose you're a worker who had to relocate from one province to another for full-time employment. In that case, your moving costs could be deductible. The tax break also applies to students taking up a co-op or summer job.
The deduction will cover transportation and storage costs, temporary living expenses, and utility hookups. How much you save is contingent on the total moving costs you can prove.
Believe it or not, your accumulated public transport passes can be deducted from your tax obligations by year-end. You can even claim your spouse's or partner's passes and that of your dependents if you have any.
This tax break is available to those whose passes allow unlimited travel on local public vehicles, such as buses and subways. Additionally, you can claim credits on short-term passes too.
Did you know you can get a tax break for your child's tutoring costs? You need a doctor's note confirming that your little one has some learning disability. Another requirement is that the tutor is not related to your family.
That said, check with an expert to know whether your child's condition qualifies you for a tax break. You'll also want to talk to someone local, as you won't always be privy to the regulatory nuances of every city. For example, if you reside in Toronto, consult specifically with a Toronto tax accountant.
Most Canadians would have no idea about carrying charges, much less that they are tax-deductible. A carrying charge is a cost you pay for a physical commodity or financial instrument. Examples are storage fees, life insurance costs, and loan interest.
Not all carrying charges can be written off your tax return, though. Only those with the potential to earn investment income may qualify as a deductible.
This may well be the biggest surprise on this list. Are you paying for a subscription with a recognized Canadian journalism organization? If so, you could be entitled to a sizable tax break. Those who paid for subscriptions in 2021 enjoyed up to $500 in deductibles in 2022.
The digital news subscription tax credit was introduced to promote Canadian journalism among citizens. The only requirement is that the subscription is in the taxpayer's name and provides primarily written e-content.
Tax season is usually stressful, but not when you start early and work with a trusted expert. It can even be exciting when you finally find out about tax deductibles you've never heard of before.
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