Personal Tax Checklist: Key Deductions and Credits

With personal tax season here, this edition focuses on key personal tax deductions and credits beyond tuition tax credits. I hope this helps as you prepare your 2025 personal tax return.

1. Carrying Charges

If you have investments outside of registered accounts (i.e. outside TFSA, RRSP, FHSA), certain costs incurred to earn investment income may be deductible, including:

• Interest on money borrowed to invest

• Investment management or advisory fees

• Accounting fees related to investment income (e.g., tax preparation fees)

Investment management or advisory fees can often be found on your December investment statements from your brokerage.

2. Charitable Donations

Donations can be a powerful tax planning tool. While more advanced strategies exist (which we’ll delve into later on), here are the basics:

In Ontario:

• The first $200 of donations receives a credit of ~20%

• Amounts above $200 generally receive a credit of ~40%

Example:

• A $1,000 donation can reduce taxes by approximately $400

• The after-tax cost is roughly 60 cents per dollar donated

Planning tip:

If you are married or common-law, consider having one spouse claim all donations to maximize the higher-rate credit.

3. Canada Training Credit (CTC)

If you’ve taken additional courses or certifications while working, the Canada Training Credit may apply.

How it works:

• You accumulate $250 of room per year (up to a $5,000 lifetime limit)

• When you incur eligible tuition (including certain professional exam fees), you can use this balance to reduce your tax

• This credit is refundable (i.e. if you owe no taxes, the government will write you a cheque)

Important:

• Income thresholds apply to accumulate the credit

• If your prior-year income is approximately $165,000+, you will not accumulate additional credit for the year

4. Moving Expenses

If you moved at least 40 km closer to a new work location (for employment or for your business if you are self-employed), you may be able to claim cost of moving including:

• Moving and transportation costs

• Travel (meals and temporary lodging)

• Lease cancellation fees

• Real estate commissions

5. Student Loan Interest Credit

Interest paid on government student loans (e.g., OSAP) qualifies for a non-refundable tax credit.

Key points:

• Can be carried forward for up to 5 years

• Applies only to government loans (not private lines of credit)

Bonus #1: GST/HST Credit (a.k.a. “Canada Groceries and Essentials Benefit”)

The GST/HST credit is designed to offset sales tax on everyday purchases and is income-tested. This credit has been getting a bit of attention lately as Mark Carney’s government has provided boost to this credit. With that said:

• For a single individual, it begins to phase out around ~$35,000 of income

• It is effectively eliminated around ~$55,000–$60,000

Bonus #2: Ontario Trillium Benefit (OTB)

The Ontario Trillium Benefit (which includes credits based on rent and/or property taxes) is also income-tested.

• Phase-out begins at relatively modest income levels

• It is generally eliminated around ~$60,000+ for a single individual

Final Thought

Being aware of these items can help you avoid missed opportunities and better optimize your overall tax position.

If you’d like a quick review of what you may be missing, feel free to reach out.

Warm regards, 

Francis Do, CPA, CA

Have any questions? Please contact Francis Do at Francis@francisdo.com or 416-572-9633.