Are You Missing Out on Tax Credits?
Why It Matters
Maximizing eligible credits reduces Canadians’ tax burden and prevents costly penalties, directly impacting household cash flow during tax season.
Key Takeaways
- •Basic personal amount makes first $16,000 of income tax‑free.
- •Medical expense credit often overlooked; premiums count toward threshold.
- •Tax software can capture credits, but DIY filers miss many.
- •Digital news subscription credit discontinued for this year.
- •File on time; penalties start at 5% plus monthly interest.
Summary
The video spotlights how many Canadians fail to claim all available tax credits as the filing deadline looms, featuring Jamie Golombek, managing director of tax and estate planning at CIBC Private Wealth.
Golombek explains the most widely used credit—the basic personal amount, which shields the first $16,000 of earnings from federal tax, and highlights the medical expense credit that many overlook, especially premiums from private health plans that can push families over the 3% income threshold.
He notes that tax‑software interviews can capture these deductions, yet DIY filers often miss them. Notable updates include the removal of the digital news subscription credit and the province‑specific Ontario Trillium Benefit, while caregivers may qualify for a Canada caregiver amount after navigating complex rules.
The takeaway for taxpayers is clear: stay organized, file by April 30 (or June 15 for self‑employed), and consider a professional review to avoid 5% penalties and high‑interest charges that accrue on unpaid balances.
Comments
Want to join the conversation?
Loading comments...