Tax Deductions You Might Not Know About

Unlock Your Wealth Radio reveals 5 things you need to know about tax deductions.

Get the most out of your tax return by remembering these simple tax deductions often forgot about or unknown by Canadians. That’s right, diligent receipt collectors and record-keepers may think they are getting the most bang for their buck, however one expert says many Canadians are missing out on tax deductions that didn’t even realize were allowed.

Cleo Hamel, a senior tax analyst at H&R Block, told CTV’s Canada AM Thursday that a number of common expenses are often overlooked at tax time because few people know they can be claimed.

Here are 5 little-known deductions that might boost your income tax return this year:

Cleo Hamel, a senior tax analyst at H&R Block appears on Canada AM, Thursday, March 15, 2014.

Travel medical insurance: Hamel said many Canadians purchase out-of-country medical insurance every year, but never think to claim it. “Don’t throw the receipt out,” she said. But remember that only medical, not trip cancellation, insurance is tax-deductible.

Children’s activities: Many parents are aware of the children’s fitness credit, which allows them to claim expenses related to their kids’ sports activities. But Hamel said there is also a children’s art credit, which may cover tutoring, language and music classes, among other expenses.

Hearing aid batteries: “People have to buy them on a weekly basis sometimes,” Hamel said. “So if you are purchasing them…buy them separately so you have a receipt for them, and claim them as a medical expense.”

Public transit: Monthly transit passes are tax-deductible. Even if you qualify for a subsidy, you can claim the amount you still have to pay out of pocket, Hamel said.

Safety deposit box rental: This likely won’t be an option as of next year, so take advantage of it, Hamel said. “It might be 40, 50 or 60 dollars that you’re able to claim and as far as I’m concerned, every dollar you save counts.”

Remember, the deadline to file your papers is April 30 🙂

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Original article courtesy of www.ctvnews.ca

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