Common Tax Deductions and Credits You Should Know (Part 5/5)

Tax deductions and credits are your secret weapons for reducing the amount of tax you owe. They can save you a significant amount of money, so it’s important to know what you can claim.

• Tax Credits: These directly reduce the tax you have to pay. For example, the Canada Workers Benefit (CWB) or the Tuition Tax Credit.

• Tax Deductions: These lower the amount of income you pay tax on. Common examples include Registered Retirement Savings Plan (RRSP) contributions and childcare expenses.

Keeping detailed records of your expenses throughout the year is key. If you're unsure what you can claim, a tax professional can help you uncover every opportunity to save.

Source:https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/get-ready-taxes.html