Maximize Your 2024 Tax Return
A Guide to Tax Credits and Deductions
Shihan Haniff
3/20/20254 min read
Understanding Taxes in Canada
Filing taxes in Canada is a crucial financial responsibility for individuals and businesses. The Canada Revenue Agency (CRA) oversees tax collection and provides various benefits to eligible taxpayers.
How Tax Refunds Work
A tax refund occurs when you have paid more in taxes throughout the year than you owe. Refunds are issued after you file your tax return and claim eligible deductions and credits.
Tax Credits: Refundable vs. Non-Refundable
Non-refundable tax credits: Reduce the amount of tax you owe but cannot result in a refund if they exceed your tax liability. Examples include the Basic Personal Amount, Age Amount, and Pension Income Amount.
Refundable tax credits: Can be paid out as a refund even if you owe no taxes. Examples include the Canada Workers Benefit (CWB) and the Climate Action Incentive Payment (CAIP).
Below is a detailed guide to federal and provincial tax credits and deductions available for the 2024 tax year.
Federal Tax Credits and Deductions
1. Basic Personal Amount (BPA)
Summary: A non-refundable tax credit that allows all Canadian taxpayers to earn a certain amount of income before paying federal tax.
Eligibility: Available to all Canadian residents. The full amount applies to individuals earning up to approximately $165,000, after which it begins to phase out.
Amount: $15,000 for 2024, phased out at higher income levels.
2. Spouse or Common-Law Partner Amount
Summary: Provides tax relief for individuals financially supporting a spouse or common-law partner with low income.
Eligibility: Taxpayers whose spouse or common-law partner has a net income below the threshold set by the CRA.
Amount: Up to $15,000, reduced by the spouse’s or partner’s income.
3. Amount for an Eligible Dependant
Summary: Tax credit for single parents or individuals supporting a dependent relative.
Eligibility: Taxpayers who do not have a spouse or common-law partner and are supporting a dependent, such as a child or elderly relative, who resides with them.
Amount: Up to $15,000, reduced by the dependant’s net income.
4. Canada Caregiver Amount
Summary: Provides tax relief for those caring for a spouse, partner, or dependent with an impairment.
Eligibility: Taxpayers providing care for a dependent with a physical or mental impairment whose income is below a specified threshold.
Amount: Up to $7,999, depending on the dependent’s income.
5. Age Amount
Summary: A tax credit for seniors to reduce income tax.
Eligibility: Individuals aged 65 or older with an annual net income below approximately $98,000.
Amount: Up to $8,396, phased out at higher income levels.
6. Pension Income Amount
Summary: Provides tax relief for retirees receiving eligible pension income.
Eligibility: Individuals receiving qualifying pension, superannuation, or annuity payments.
Amount: Up to $2,000.
7. Disability Tax Credit (DTC)
Summary: A credit designed to assist individuals with severe and prolonged disabilities.
Eligibility: Individuals with a certified disability that significantly impairs daily life, as confirmed by a medical professional.
Amount: Up to $8,986.
8. Tuition Tax Credit
Summary: Helps students reduce taxable income by claiming eligible tuition fees.
Eligibility: Post-secondary students who have paid eligible tuition fees to an accredited institution.
Amount: 15% of eligible tuition fees.
9. Student Loan Interest Credit
Summary: A credit for individuals who have paid interest on eligible student loans.
Eligibility: Taxpayers who have paid interest on federal or provincial student loans (private loans are not eligible).
Amount: 15% of eligible interest payments.
10. Medical Expense Tax Credit (METC)
Summary: Provides relief for individuals with significant medical expenses.
Eligibility: Taxpayers whose medical expenses exceed the lower of 3% of net income or $2,635.
Amount: 15% of eligible expenses.
11. Home Buyers' Amount
Summary: Assists first-time homebuyers with home purchase costs.
Eligibility: First-time homebuyers or those supporting a disabled relative.
Amount: $10,000 credit, resulting in up to $1,500 in tax relief.
12. Adoption Expense Credit
Summary: Supports parents with the high costs of adopting a child.
Eligibility: Parents adopting a child under 18 through a recognized adoption agency.
Amount: Up to $18,210 in eligible adoption expenses.
13. Digital News Subscription Tax Credit
Summary: Encourages Canadians to support digital news by providing a tax break.
Eligibility: Individuals who pay for eligible digital news subscriptions.
Amount: 15% of up to $500 in subscription costs.
14. Multigenerational Home Renovation Tax Credit (MHRTC)
Summary: Supports renovations to create a separate living space for seniors or disabled adults.
Eligibility: Homeowners making qualifying renovations for a senior (65+) or an individual eligible for the Disability Tax Credit.
Amount: 15% of eligible expenses, up to $50,000.
BC Provincial Tax Credits and Benefits
1. BC Family Benefit
Summary: A tax-free monthly payment to assist families with the cost of raising children.
Eligibility: Families residing in BC with children under 18; amount is based on income level.
Amount: Varies based on family net income and number of children.
2. BC Climate Action Tax Credit
Summary: Provides financial relief for low- and middle-income families to offset carbon tax costs.
Eligibility: BC residents over 19, with income below a set threshold.
Amount: Up to $447 per adult and $223 per child.
3. BC Renters' Tax Credit
Summary: A new refundable tax credit for eligible renters in BC.
Eligibility: Renters with income below a specified threshold.
Amount: Up to $400 per year.
Important Filing Deadline
The deadline to file your 2024 income tax return is April 30, 2025.
Self-employed individuals have until June 15, 2025, but any balance owing is still due by April 30, 2025.
For more information, visit the Canada Revenue Agency (CRA) website or consult a tax professional.
Prepared by: Mohomed Shihan Haniff
Financial Consultant | Tax Specialist