We use cookies to offer you a better experience, analyze site traffic, and serve targeted advertisements. By continuing to use this website, you consent to the use of cookies in accordance with our Terms of use.

iafg-d
  • Individuals
  • Companies and Groups
  • Advisors and Brokers
  • Phone 1-800-463-6236
  • FR
  • Connect
    • My Client Space
    • Advisor Centre
    • Dealer Centre (UniFI)
    • Partner Centre (Rave)
iafg-d
  • Individuals homepage
  • Insurance
    • Coverage
      • Life insurance
      • Car insurance
      • RV insurance
      • Home insurance
      • Mortgage insurance
      • Health and disability insurance
      • Travel Insurance
    • Tools
      • iA Financial Compass
      • Term life insurance calculator
      • Critical illness insurance calculator
      • See all tools
      Life Events
      • Moving in together
      • Buying a home
      • Having a child
      • Starting a business
      • Planning your retirement
      • See all life events
    • I am already a client
      • Customer service
      • Make a claim
      • Find a form
      • My group insurance
      • Change my address
      • Change my beneficiary
      • Connect to My Client Space
      Advice
      • Advice zone
      • The value of an advisor
  • Savings and Retirement
    • Savings and Investments
      • RRSP, TFSA and other plans

        For my projects or my retirement

      • RRIF, LIF and annuities

        For my retirement income

      • RESP

        For my children’s education

      • Investment funds

        Segregated funds, mutual funds…

      • Private Wealth

        Stock market, stocks, bonds…

    • Tools
      • iA Financial Compass
      • Retirement calculator
      • Education savings calculator
      • RRSP loan calculator
      • RRSP calculator
      • TFSA calculator
      • See all tools
      Life Events
      • Saving for a project
      • Moving in together
      • Buying a home
      • Having a child
      • Starting a business
      • Planning your retirement
      • See all life events
    • I am already a client
      • Customer service
      • Find a form
      • My group retirement plan
      • Change my address
      • Change my beneficiary
      • Connect to My Client Space
      Invest better
      • Fund performance and overview
      • Guaranteed fund rates
      • Economic and financial publications
      • Economic news
      • Advice zone
      • The value of an advisor
  • Loans
    • Products
      • RRSP loans

        For my retirement

      • RESP loans

        For my children’s education

      • Investment loan

        For my financial prosperity

    • Tools
      • iA Financial Compass
      • RRSP loan calculator
      • See all tools
      Life Events
      • Buying a home
      • See all life events
    • I am already a client
      • Customer service
      • Change my address
      • Change my beneficiary
      • Connect to My Client Space
      Advice
      • Advice zone
      • The value of an advisor
  • Connect
    • My Client Space
    • Advisor Centre
    • Dealer Centre (UniFI)
    • Partner Centre (Rave)
  • About us
  • Careers
  • Contact us
  • Contact an advisor
FR

Advice Zone

  • Overview
  • My Vehicle
  • My House
  • My Family
  • My Projects
  • My Finances
  • My Career
  • My Involvement
  • My Security
  • My Retirement
  • Our Experts

Optimizing your tax refund

For many Canadians, spring goes hand-in-hand with tax refunds.

In 2022, the federal government paid out an average of $2,092 in tax refunds to eligible individuals. Here are the deductions and credits you can claim to optimize your tax situation.

Deductions

Tax deductions are amounts that lower your taxable income. They give the illusion that you have earned less money during the year. When you lower your income, you can lower your marginal tax rate, which then lowers your average tax rate.

RRSP contributions

Money paid into a registered retirement savings plan is tax deductible. However, if you withdraw money from your RRSP, it will count as a source of income for the current year.

Moving expenses

If you were required to move to be closer to your school or work, you are entitled deduct your moving expenses provided that you are moving at least 40 km away from your school or work.

Childcare expenses

If you are required to make childcare arrangements to go to work, operate a business or go to school, childcare costs can be deducted from your income.

Pension income splitting

Another way to lower your income to transfer a portion of your eligible pension income to your spouse if your spouse’s income is lower than yours. This transfer may drop you into a lower tax bracket, which is translated by a lower marginal tax rate.

Tax credits

Refundable tax credits are granted even if no income tax is payable for the year, whereas non-refundable tax credits only lower the income tax payable for the year. Certain non-refundable tax credits can be transferred between spouses, parents or grandparents, or carried over to subsequent years if the income tax owing is not high enough to use the entire credit.

Medical expenses

Taking care of one’s self can be expensive. Luckily, healthcare expenses incurred during the year entitle you to a tax credit. Ask your pharmacist for a receipt for the total amount spent on your prescriptions during the year. You can also add most dental care costs, costs for purchasing glasses or contact lenses, contributions to a prescription drug insurance plan, etc. But, remember to deduct the portion paid by your insurance company. The insurance company will issue a summary of all claims and the amount paid, upon request. The medical expenses that entitle you to a tax credit is then adjusted based on your income. This means that, in some cases, the medical expenses tax credit may be null.

Charitable donations

Generosity can pay off! The donations you make in a year entitle you to a tax credit.

Tuition fees

Post-secondary students may receive a tax credit for their tuition fees. Schools produce a tuition fee statement right before tax season to help students prepare their income tax return.

House purchase costs

Did you buy a house last year? To help first-time buyers access the real estate market, the federal and provincial (Quebec) government offers them a tax credit of up to $1,500.

Possible tax deductions due to telework during the COVID-19 pandemic

If you worked from home more than 50% of the time for at least four consecutive weeks in 2022, some of your work-related expenses can be deducted on your tax return.

To learn more, see our income tax quick reference.

The much-anticipated tax refund

Once you have received as big of a refund as you can, use this money intelligently. It’s not a gift, but rather, a refund of the portion of your income you overpaid during the year. Deposit this money in your TFSA or your RRSP, invest it or use it to pay a loan or debt.

Schedule an appointment with a financial security advisor, who can guide you and help you make the most of your money.

Visit the Canada Revenue Agency website to see a detailed list of deductions and tax credits.

 

Attention – important information:

Once you complete your income tax return, keep the receipts, documents and forms used for your calculations. If you are audited, you may be asked for up to seven years’ worth of supporting documents.

Happy tax season!

Looking for advice?

A financial security advisor can help you take stock of your finances and suggest various options tailored to your needs.

Contact an advisor

Tools and advice

  • iA Financial Compass
  • Pssstt! 3 hidden RRSP benefits!
  • Black Friday: Conscious consumerism
  • 10 tips to beat inflation
  • About iA
  • Careers
  • Contact us
  • Find an advisor
  • Make a claim
  • Connect to My Client Space
  • Advice Zone
  • Sustainable development
  • COVID-19
  • Site map
  • Unsubscribe
  • Accessibility
  • Privacy and security
  • Terms of use
  • Unclaimed property

INVESTED IN YOU. © 2023 Industrial Alliance Insurance and Financial Services Inc. – iA Financial Group. All rights reserved.