What You Can (and Can’t) Claim on Your Personal Income Tax in Ontario

Introduction: Don’t Leave Money on the Table This Tax Season

Filing your personal income taxes in Ontario doesn’t have to be confusing or overwhelming. In fact, understanding which tax deductions and credits you’re eligible for can put real money back in your pocket—if you know where to look.

At Henderson Roller Partnership, we help individuals and families across Oakville and surrounding communities navigate the complex world of income tax, ensuring they claim every dollar they’re entitled to, while staying compliant with the CRA.

In this guide, we’ll walk you through what you can and can’t claim on your personal income tax return in Ontario, so you can make informed choices and reduce your overall tax burden.

1. What’s the Difference Between a Deduction and a Credit?

Before diving in, it’s helpful to understand the difference:

• Tax deductions lower your taxable income (e.g., RRSP contributions)

• Tax credits reduce the tax you owe (e.g., medical expense credit)

Some credits are non-refundable (reduce tax to zero, but don’t result in a refund), while others are refundable (you get the money even if you don’t owe tax).

2. Common Personal Income Tax Deductions in Ontario

Let’s start with what you can claim to lower your taxable income:

✅ RRSP Contributions

Contributions to a Registered Retirement Savings Plan (RRSP) are one of the most effective ways to reduce your taxable income.

• Deductible up to 18% of your earned income, up to an annual limit

• Contributions made in the first 60 days of the year can be claimed on the previous year's return

💡 Pro Tip: Even if you don’t use the deduction now, unused contributions can be carried forward for future years.

✅ Childcare Expenses

If you paid for child care so you could work, attend school, or run a business, you may deduct:

• Daycare fees

• Nursery school

• Summer camps

• Babysitters (with receipts)

The deduction is usually claimed by the lower-income spouse.

✅ Union and Professional Dues

You can deduct dues paid to:

• Unions

• Professional associations (like engineers, teachers, nurses, etc.)

Make sure you keep your T4 or receipts as proof.

✅ Moving Expenses

If you moved at least 40 km closer to your job, school, or new business location, you may be able to deduct:

• Moving trucks and storage

• Temporary lodging

• Meals while travelling

• Real estate fees (if selling your home)

This deduction applies even for students moving to attend full-time post-secondary studies.

✅ Spousal or Child Support Payments

Only court-ordered or written agreement payments are deductible for the payer (and taxable for the recipient).

3. Common Non-Refundable Tax Credits in Ontario

These won’t give you a refund if you owe no tax, but they do reduce your overall tax liability.

✅ Basic Personal Amount

Everyone in Canada can claim this federal and provincial credit. For 2024, it’s:

• $15,705 federally

• $12,783 provincially (Ontario)

This means the first chunk of your income isn’t taxed.

✅ Medical Expenses

If your total eligible medical expenses exceed a certain threshold (usually 3% of your net income), you can claim:

• Prescription medications

• Dental care

• Vision care

• Mobility aids

• Premiums for private health insurance

You can combine medical expenses for yourself, your spouse, and dependents.

✅ Tuition Fees

Students can claim eligible tuition fees from approved post-secondary institutions.

• Amounts over $100 per institution

• Can be carried forward or transferred to a parent/spouse (up to $5,000)

You’ll need a T2202 slip from the school.

✅ Disability Tax Credit (DTC)

If you or a family member has a severe and prolonged disability, you may qualify for the DTC, which can reduce your tax bill significantly.

• Requires a medical practitioner’s certification

• Can be transferred to supporting relatives

✅ Home Accessibility Tax Credit

If you made renovations to your home to improve mobility or access for seniors or disabled persons, you may be eligible for this federal credit.

4. Other Notable Tax Credits

• Canada Workers Benefit (CWB): For low-income earners who are working

• First-Time Home Buyers' Tax Credit: Worth up to $1,500 for qualifying new homeowners

• Digital News Subscription Credit: For subscriptions to eligible Canadian news outlets

• Charitable Donations: Receive federal and provincial credits when you donate to registered charities

5. What You Can’t Claim on Your Personal Taxes

Some expenses might feel like they should be deductible—but aren’t:

❌ Clothing and Personal Items

Unless it's mandatory safety gear (like steel-toe boots for construction), regular clothing isn’t deductible—even if it’s for work.

❌ Commuting Costs

Driving or taking public transit to work is considered a personal expense, even if it’s far away.

❌ Most Home Renovations

Only specific upgrades related to medical accessibility or energy efficiency may qualify. General repairs and improvements don’t count.

❌ Gym Memberships

Even if it’s for health reasons, gym fees are not deductible unless prescribed as part of a qualifying medical treatment (rare).

❌ Mortgage Payments

Your interest may be deductible in rare cases if you use your home for business purposes—but mortgage principal payments are never deductible.

6. Tips to Maximize Your Tax Return

✔️ Keep detailed receipts and documentation

✔️ Use registered accounts like RRSPs and TFSAs strategically

✔️ Review your notice of assessment from last year for carry-forward amounts

✔️ File on time to avoid interest and penalties (April 30 for most individuals)

✔️ Work with a tax professional to ensure accuracy and catch every possible credit

7. How Henderson Roller Can Help

At Henderson Roller Partnership in Oakville, we specialize in helping individuals and families make the most of their personal income tax returns.

We provide:

• One-on-one tax consultations

• Strategic planning for RRSPs, retirement, and investments

• Student and senior tax filing support

• Help with disability and medical tax credits

• Full CRA-compliant filing and audit support

Whether you’re filing a simple return or have more complex deductions to consider, we’re here to make the process smooth, stress-free, and financially beneficial.

Conclusion: Maximize What You Keep—Minimize What You Pay

The tax system can be tricky—but with the right guidance, you can claim more than you might think. From RRSPs to medical expenses, tuition credits to charitable donations, there are many ways to reduce your tax bill legally and efficiently.

Not sure where to start? We’re here to help.

Need Help with Your Personal Taxes in Oakville?

Visit us at Henderson Roller Partnership

📞 905-849-4161 Call us to book a consultation

💻 https://www.hrpcpa.ca/ Or file with us online for convenience and confidence

Henderson Roller – Local Experts in Personal Tax Planning and Filing.