Navigating the Canadian tax system can be complex, but identifying common tax deductions can go a long way toward protecting your financial future. Many taxpayers inadvertently overlook valuable tax credits, leading to higher tax liabilities than necessary.
At Moraine Wealth, our priority is to help you work toward a financial plan is as efficient as possible by considering the big picture. By understanding which credits are often left on the table, such as specific medical expenses or the carry-forward potential of donations, you can better align your filings with your overall investment strategy.
Tax Credits You May Have Missed
Family‑Related Credits & Benefits
Raising a family or caring for loved ones in Canada comes with unique financial challenges, but there are several tax credits and benefits designed to help lighten the load. From monthly cash payments to tax-time credits, these supports are available for parents and caregivers alike. To help you navigate the 2025/2026 tax season, we’ve put together an overview of the most common family benefits, including who qualifies and how the amounts are calculated.
1. Canada Child Benefit (CCB)
- What it is: A tax-free monthly payment to eligible families to help with the cost of raising children under 18.
- Eligibility: Based on family net income, number of children, and their ages. Both spouses/partners must file annual tax returns to continue receiving the benefit.
- Application: Usually automatic when a child is born and registered, or by applying through the CRA.
- Additional Support: The Child Disability Benefit (CDB) is an extra amount for families caring for a child under 18 with a severe and prolonged impairment in physical or mental functions.
- Key Point: You must file your taxes every year, even with no income, to remain eligible.
2. GST/HST Credit
- What it is: A tax-free quarterly payment to help individuals and families with low and modest incomes offset the GST or HST they pay.
- Eligibility: Based on family net income and number of children. Both spouses/partners must file tax returns.
- Key Point: You do not need to apply separately; eligibility is determined when you file your tax return.
3. Child Care Expense Deduction
- What it is: A deduction from income for eligible child care expenses incurred to allow a parent to work, carry on a business, attend school, or conduct research.
- Eligibility: Generally, the lower-income spouse must claim the deduction, unless specific exceptions apply (e.g., the lower-income spouse is in school, infirm, or incarcerated).
- Limits: For 2025, up to $8,000 per child under 7, $5,000 per child aged 7–16, and $11,000 per child eligible for the Disability Tax Credit.
- Eligible Expenses: Payments to caregivers, daycare centres, day camps, and certain educational institutions. Receipts and, if applicable, the caregiver’s SIN are required.
4. Amount for an Eligible Dependant
- What it is: A non-refundable tax credit for single parents supporting a child under 18 or another eligible dependant.
- Eligibility: Only one claim per household; cannot be claimed if you are also claiming the spouse or common-law partner amount.
- Calculation: The amount is reduced by the dependent’s net income.
5. Spouse or Common-Law Partner Amount
- What it is: A non-refundable tax credit for supporting a spouse or common-law partner with a net income below a certain threshold.
- Eligibility: The amount is reduced by the spouse’s or partner’s net income.
6. Canada Caregiver Credit
- What it is: A non-refundable tax credit for individuals supporting a spouse, common-law partner, or dependant with a physical or mental impairment.
- Eligibility: Available for spouses, common-law partners, minor children, and certain other relatives who are dependent due to infirmity.
- Calculation: The amount depends on the relationship and the dependent’s net income. There are specific lines for spouses/partners, eligible dependents, and other infirm dependents.
7. Medical Expense Tax Credit
- What it is: A non-refundable tax credit for eligible medical expenses paid for yourself, your spouse or common-law partner, and your children under 18.
- Eligibility: Can also be claimed for other dependants (e.g., parents, grandparents) if you support them.
- Calculation: Claim the total eligible expenses minus the lesser of 3% of your net income or a set threshold.
8. Disability Tax Credit (DTC) and Child Disability Benefit
- What it is: The DTC is a non-refundable tax credit for individuals with a severe and prolonged impairment in physical or mental functions, or for their supporting family members, while the Child Disability Benefit is a tax-free monthly payment for families caring for a child under 18 who is eligible for the DTC.
- Application: These credits must be applied for jointly with an approved medical professional who can attest to your child’s diagnosis. The diagnosis must significantly affect daily living for the CRA to approve.
9. Canada Workers Benefit (CWB)
- What it is: A refundable tax credit for low-income individuals and families who are working.
- Eligibility: Based on working income and family net income. There is a supplement for individuals with disabilities.
10. Canada Training Credit
- What it is: A refundable tax credit to help with the cost of eligible training fees.
- Eligibility: Available to individuals aged 26 to 65, based on income and other criteria. The annual accumulation is $250, up to a lifetime limit of $5,000.
11. Adoption Expense Credit
- What it is: A non-refundable tax credit for eligible adoption expenses incurred during the adoption process.
- Limit: For 2026, up to $19,972 per adopted child.
12. Provincial and Territorial Benefits
- What they are: Additional benefits and credits administered by the CRA on behalf of provinces and territories, such as provincial child benefits, credits for child fitness or arts (in some provinces), and other family-related supports.
- Eligibility and application: Varies by province/territory; most are determined automatically when you file your tax return.
13. Registered Education Savings Plan (RESP)
- What it is: While not a tax deduction, contributions to an RESP allow for tax-sheltered growth and government grants to help save for a child’s post-secondary education. Withdrawals for educational purposes are taxed in the student’s hands, who often has little or no tax to pay.
Identifying Overlooked Medical Credits
One of the most common tax credits Canadians miss is in medical expense claims. While most people remember dental visits, many forget that premiums paid to private health insurance plans, prescription eyeglasses, and even travel expenses for medical care (assuming you must travel over 40 km) may be eligible. These costs add up quickly, yet they’re frequently omitted because Canadians assume they don’t meet the minimum threshold.
Strategic Tracking for Maximum Benefit
The key to capturing these credits is not just knowing that they exist, but having a reliable system to document them. To help you prepare for tax season without the last-minute stress of hunting for paperwork, implement these tracking habits:
- Centralize Your Receipts: Use a dedicated physical folder or a secure cloud drive to save every receipt as soon as you receive it.
- Use a Tracking App: Many financial apps let you snap photos of receipts and categorize them as tax-deductible immediately, avoiding faded ink or lost paper.
- Review Your Carry-Forwards: Remember that charitable donations can be carried forward for up to five years. This allows for strategic planning regarding which year the deduction will provide the most benefit.
- Log Your Mileage: If you’re travelling for medical appointments or volunteer work that qualifies for a rebate, keep a dedicated logbook in your vehicle to ensure accuracy.
The Power of Charitable Giving and Carry-Forwards
Charitable donations are a powerful tool for both community impact and tax efficiency. However, a common misconception is that you must claim a donation in the specific year it was made. By strategically bundling donations or carrying them forward to a year when you fall into a higher tax bracket, you can potentially maximize the total credit you receive. This type of forward-thinking is designed to support your philanthropic goals and also support your long-term financial stability.
Building a Tax-Efficient Future
Tax planning should never be viewed as a once-a-year event; it’s an ongoing component of a sophisticated wealth management plan. By staying diligent with your tracking and staying informed on the tax credits Canadians miss, you put yourself in a position of strength. While the strategies mentioned here are excellent starting points, it’s important to remember that tax laws are subject to change, and these suggestions don’t guarantee specific returns or tax savings.
A comprehensive financial strategy ensures that your tax approach is always designed with your best interests in mind, integrated seamlessly with your broader goals. If you’re ready to see how a tax-efficient approach can enhance your wealth management and aim to preserve more of your capital, we’re here to help you navigate these opportunities.
Book a discovery call with Moraine Wealth today to get started.
Disclaimer: This article is for informational and educational purposes only and does not constitute individual financial, investment, tax, or legal advice. Strategies mentioned may not be suitable for all investors. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. We recommend consulting with a qualified financial professional or tax advisor regarding your specific circumstances before making any financial decision.