Tax software is excellent at handling the basics, but it often misses the specific, nuanced credits that require manual input, detailed receipts, or specific knowledge of the tax code. You might be leaving money on the table by ignoring these valuable credits.
Medical Expense Tax Credit
Most people know to claim prescriptions, but the Medical Expense Tax Credit covers much more.
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Travel Expenses: If you must travel more than 40km (one way) for medical services not available in your locality, you may be able to claim vehicle expenses. If you travel more than 80km, you can often claim accommodation and meals as well. This is particularly relevant for our clients in rural Alberta.
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Gluten-Free Products: People with Celiac disease can claim the incremental cost of gluten-free products compared to their non-gluten-free counterparts.
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Private Health Plans: Any premiums you pay out-of-pocket for private health insurance (including travel medical insurance) are eligible expenses.
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The 12-Month Rule: You can claim expenses for any 12-month period ending in the tax year, not just the calendar year. This allows you to group expensive procedures together to maximize the claim.
Multigenerational Home Renovation Tax Credit (MHRTC)
This refundable tax credit is designed to assist families living together. If you constructed a secondary suite for a "qualifying relation" (a senior parent over 65 or an adult with a disability), you could be eligible for a credit of up to $7,500 (15% of up to $50,000 in eligible expenses).
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The suite must be a self-contained housing unit with a private entrance, kitchen, bathroom, and sleeping area.
Home Office Expenses: The Detailed Method
A quick reminder that the temporary "flat rate" method for home office expenses (introduced during COVID-19) is gone. For the 2025 tax year, the detailed method is required. This means you need a T2200 form signed by your employer and must keep actual receipts for utilities, maintenance, and supplies to make a claim.
Contact Us
Don't guess on your credits. Contact JMH & Co. to ensure you are claiming every dollar you are entitled to, from renovations to medical travel.
This blog was written using the assistance of AI.
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