How to make the most of your 2023 tax return

A tax expert says every year, Canadians leave millions of dollars in tax deductions and credits on the table.

“The biggest mistake people make is the mistake of omission,” explained Gerry Vittoratos, a national tax specialist with UFile.

He says the majority of people aren’t maximizing their returns, simply because they’re not claiming everything they’re eligible for.

Vittoratos adds that two commonly overlooked areas are medical expenses and disability.

“When they’re entitled to that disability credit, they’re not only entitled to the credit itself but that opens the door to other credits that they can claim, for example, the Home Accessibility [Credit] — if they have renovation fees in order to make their home more amenable, like, for example, putting railings in the bathroom, a ramp for wheelchair accessibility for the home,” he explained.

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He says that Canadians eligible for the Accessibility Credit can actually claim up to $10,000 in home renovation expenses, and while it may seem too good to be true, they can actually double-dip in this area — and claim those same renovations as a medical expense.

Vittoratos says another mistake often made is scrambling to pull things together at the 11th hour.

“Tax season is year-round, it is not just a three-month thing. It’s a year-round thing because you are always claiming, you are always spending or claiming in areas that could be deductible or claimable as a credit on your tax return — for example medical expenses, for example, donations,” he said. “So, create your folder, your physical folder, or your virtual folder and make sure you collect anything you suspect is eligible.”

Another good tax habit is to create a good archiving system to keep medical and donation receipts, so you don’t miss out come tax time, Vittoratos adds.

But, if you make a mistake and miss something, he says it doesn’t have to be a total loss.

“The good part about a tax return, in this case, is that you can retroactively go back and make your claims,” he said. “That includes anything on your tax return even RRSP receipts that you forgot to put in, any receipts that you would have when it comes to medical, when it comes to donations, or anything else. For example, RRSP receipts can be claimed 10 years back.”