Have You Claimed All Tax Deductions and Credits This Year?

Tax season 2026 has mostly wrapped up, but it’s not completely over: the June 15 filing deadline for self-employed individuals still looms. Beyond filing deadlines, taxpayers should also be aware of the timelines that apply to Canada Revenue Agency (CRA) post-assessment reviews and audits.

Many Canadians appreciate refunds and benefits, yet gathering the documentation that supports a tax return is a recurring source of stress. Simple mistakes or missing paperwork can trigger follow-up from the CRA — though in some cases omissions work in your favor. The key is knowing common filing pitfalls so you can act proactively.

Tax filing is getting more complicated—and costlier to ignore

Filing taxes in Canada has grown more complex. Tax rules change frequently, life gets busier, and the CRA increasingly relies on its My Account portal to communicate with taxpayers. If you don’t check that portal regularly, important notices can be missed.

Given this complexity, many Canadians now turn to professional tax preparers. Whether you prepare your return yourself or hire an accountant, the legal responsibility to file an accurate, timely return remains yours. Missed deadlines and errors can lead to penalties and interest.

If you missed the filing deadline, don’t delay indefinitely: filing late is usually less costly than failing to file at all. If previous returns omitted income or contained mistakes, you can often correct them voluntarily before the CRA initiates contact, which can reduce penalties. Also, monitor your CRA My Account for reassessments, correspondence, or requests for documentation.

Why filing your taxes pays off

Filing your tax return unlocks refundable credits and benefits that are only available to those who file. For many families, the annual return is one of the most important financial documents because it determines access to programs such as the Canada Child Benefit, Canada Disability Benefit, Groceries and Essentials Benefit, and Canada Dental Benefit.

These benefits are income-tested, so your family net income determines the amounts you receive. Thoughtful tax planning can therefore affect not only your tax bill but also the level of benefits you qualify for. For example, contributions to a registered retirement savings plan (RRSP) or a first home savings account (FHSA) can reduce taxable income and potentially increase refunds and benefit eligibility.

Many taxpayers miss opportunities to reduce taxes or claim valuable credits. Below are nine commonly overlooked items you should review when preparing your return.

1. Correct mistakes from previous tax returns

You can recover missed refunds and credits by filing adjustments to prior federal T1 returns going back as far as 10 years. The CRA allows online amendments, making it easier to correct earlier errors and claim amounts you may be owed.

2. Double-check your income reporting

Errors in income reporting are common. Be careful: failing to report income properly can lead to severe penalties, including a gross negligence penalty in serious cases. The CRA now shares T-slip information directly with many tax software programs, but the system is not perfect. The CRA may be late in uploading slips, so reconcile your own records with the CRA’s data. Ultimately, you are responsible for ensuring your return is complete and accurate.

3. Don’t ignore income from side hustles or online sales

Expect greater scrutiny if you earn money from online sales, ride-sharing, short-term rentals, or cryptocurrency transactions. Service industries and cash-intensive businesses also attract attention. Track and report all income, including tips and gratuities. Deliberately hiding income or inflating expenses is tax evasion and can carry criminal consequences.

Related reading: How is cryptocurrency taxed in Canada?

4. Know the tax risks of flipping homes

Proceeds from the sale of your principal residence are typically tax-exempt under the principal residence exemption, but you must still report the sale. Failing to report can trigger penalties. A less obvious risk is frequent buying and selling of principal residences: if the CRA concludes you are in the business of flipping homes, you can lose the exemption and the usual capital gains treatment, potentially making 100% of gains taxable as income. If you have concerns, consult Schedule 3 and Form T2091 and speak with a tax professional.

5. Don’t forget to claim capital losses

In volatile markets, capital losses matter. Report losses on investments held in non-registered accounts: they can offset capital gains in the current year. If you have no gains this year, unused capital losses can be carried back up to three years to offset past capital gains or carried forward indefinitely to offset future gains. In the year of death, unused capital losses may be used against all types of income. Don’t overlook these valuable deductions.

6. Take advantage of pension income splitting

Pension income splitting can lower a household’s combined tax bill. For example, couples aged 60 and over can apportion half of certain Canada Pension Plan benefits to a lower-income spouse. You can also split up to 50% of qualifying pension income from registered plans or RRIF withdrawals by filing form T1032 each year. Review age rules and eligibility with your tax advisor, and remember there is a three-year period to adjust prior years if you missed making the election.

If you are a business owner and both spouses are involved strategically, consider whether paying dividends to a lower-earning, non-active spouse could reduce family taxes once you reach age 65.

7. Claim commonly missed tax deductions

Small, overlooked deductions can add up. Commonly missed items include child care expenses, professional or union dues, and investment-related carrying costs such as interest on money borrowed to earn investment income. Review financial statements and receipts carefully to capture all eligible deductions.

8. Don’t overlook moving expense deductions

Moving expenses can be substantial. Qualifying costs may include real estate commissions and other large expenses, but to claim them you must move at least 40 kilometres closer to a new workplace or business location where you earn active income. Benefits such as employment insurance, pension, or investment income do not qualify. Keep detailed receipts, as moving claims are frequently reviewed by the CRA.

9. Claim disability and medical expense tax credits

The Disability Tax Credit (DTC) and the medical expense tax credit are two powerful non-refundable credits that often go unclaimed. Families dealing with progressive conditions such as Alzheimer’s or cancer frequently miss these claims. To apply for the DTC, a qualified medical practitioner must complete Form T2201. Recent policy changes announced in the April 28, 2026 Spring Economic Update expanded certification options in certain cases to include public guardians and trustees.

If a DTC certificate is approved retroactively, it may allow you to amend previous tax returns and claim the credit for prior years. The medical expense credit is also valuable: eligible costs can be claimed for any consecutive 12-month period ending in the tax year, and qualifying items cover a wide range of treatments and supports. Often-overlooked examples include unreimbursed blood coagulation therapies, additional costs for gluten-free foods, and home modifications for mobility challenges. Keep thorough records and receipts when claiming these credits.

Related reading: A tax guide for Canadians with disabilities

The smartest tax move: claim what you’re entitled to

Reviewing these items can help ensure you pay the correct amount of tax—no more, no less—and receive all refundable benefits and credits available to you. Careful planning and accurate filing can yield meaningful savings and improved year-over-year cash flow. Stay organized, keep supporting documents, and consult a tax professional when questions arise.