6 Game-Changing Tips to Help You Get a Bigger Tax Refund

Most of us don't like to consider filing our tax returns, but it doesn't have to be that difficult.

It's a great way to save or be compensated for the money you didn't realize you were entitled to.


After that, you'll have until April 30 every year, to submit your tax return. You have time to determine whether you're eligible for any of these advantages as of this date.

If you wait until the last minute to submit your return, you may still take advantage of these deductions, but you will be subject to interest and penalties.

Don't wait until tax season to learn about your options.


Knowing what you're entitled to early on can make it simpler to recall what receipts and documents you'll need to claim expenditures later.


You may use these strategies to reduce your tax bill and increase your return by using the following deductions, credits, and other helpful information.


The cost of child care and other perks received by the family


Expenses for child care come from your taxable income. Daycares, summer camps, overnight boarding schools, and in-home caregivers like nannies are all childcare costs.


For family benefits like the GST/HST Credit and the Canada Child Benefit to continue to be paid to you, you must pay your taxes each year (CCB).


For families with low to moderate incomes, the GST/HST credit may reduce or eliminate some or all of the sales tax you pay, even for new or used cars.

With the support of a tax-free monthly contribution, you may help pay for the expenses of rearing children under 18.


Children younger than six may get up to $569 per month, while children aged six to seventeen can receive up to $480 per month under this program. Payment levels are based on the family's number of children and the adjusted net income.

The cost of owning and operating a vehicle

You may be eligible to deduct some of your car expenditures if you use your vehicle for business.


Car expenditures, including petrol, insurance, license and registration fees, maintenance and repairs, leasing charges, and interest on money borrowed to acquire a car, may be deductible if you're a self-employed business owner.


Different tax discounts are available depending on whether you lease or purchase your vehicle. The capital cost allowance (CCA), a tax break based on the depreciation percentage, may be claimed if you buy (until the car gets old and has no more value).


For commercial reasons, there are limits on the amount of CCA you may claim. Passenger cars are restricted to a $30,000 cap, whereas zero-emission vehicles are restricted to a $55,000 cap.


Only the vehicle component utilized for commercial purposes are eligible for addition. To compute this, your business excursions must be recorded in a logbook, including the date and reason for each journey.


You should keep track of all your other costs and save them in one location if you are subject to an audit.


Some salaried workers may be able to deduct some or all of their automobile expenses. Make sure to keep in mind that traveling between your house and job does not qualify as a tax deduction.


Costs associated with being an employee

Costs associated with being an employee, such as health insurance, union, and professional association fees, are often eligible for a tax deduction.


Expenditures relating to your occupation, such as union dues, professional board dues mandated by provincial or territorial legislation, and insurance premiums, are all expenses for a claim.


Expenses incurred to get work income are also deductible.


Cell phone bills and office supplies are deductible if you were obligated to acquire them under your job contract and did not get an allowance for them.


Unfortunately, most workers cannot deduct work-related expenditures such as tools, clothes, and transportation to and from the office.

Investments in retirement savings plans such as RRSPs

Tax savings and a greater refund may both be achieved via RRSP contributions. The contribution deadline for the tax year 2021 is March 1, 2022.


For 2021, the maximum contribution is 27% of your adjusted gross income (up to a maximum of $27,830), plus any unused contributions from prior years.


Your RRSP contribution limit is available in your CRA My Account or on your most recent notice of assessment.


Maximizing your RRSP if your annual income is more than $50,000 is a solid rule of thumb for maximizing your tax savings. You should contribute to a TFSA if you earn less than $50,000 annually.

Expenses associated with medical care

Taxpayers may claim a wide range of medical costs as non-refundable tax credits, including dental exams, laser eye surgery, orthopedic shoes, and private insurance payments.


Make sure to save your receipts, medications, and any supporting evidence if the CRA needs to examine them.

Simplified deduction for home offices

Last year, the epidemic forced millions of Canadians to work from home.


If you fall into this category, you may be able to take advantage of the CRA's new temporary flat rate system, which allows you to claim up to $400 in back pay for each day you worked from home (200 working days).


This simplified home office deduction is only available if the following conditions are met:

In 2021, you either worked from home because of COVID-19 or because your company required you to do so.


As of 2021, you worked at least 50% of the time from home for at least four consecutive weeks.

This period's reported expenses are added due to official business travel.


Using the streamlined approach, you won't have to fill out Form T2200, maintain track of supporting documentation or determine the size of your workspace. Form T2200S or T2200 from your employer, completed and signed, is still necessary if you choose the more thorough procedure.


Paying back student loan debt

Interest paid on student loans is deductible under some circumstances, but certain limitations exist. Canada Student Financial Assistance Act, Canada Student Loans Act, and similar provincial or territorial programs are solely eligible for interest payments.


Interest on personal loans, credit cards, and student loans from non-U.S. institutions are not deductible. Neither do home equity lines of credit.


It's a non-refundable tax benefit when you claim interest on your student loan. To get a tax refund, you cannot utilize it.


As long as you can carry over the interest on your student loans for up to five years, you may want to reserve your claim for a year when you owe the most tax.


The tax system in Canada is continually evolving. It's challenging to stay up!


Regarding tax credits and deductions, most individuals wait until the last minute before finding out how they affect them.


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