Majority didn’t know they can amend past tax returns to claim missed credits, survey finds
During the current tax-filing season, a recent survey by H&R Block Canada Inc. reveals that 65 percent of Canadians did not know they can amend tax returns from the past 10 years to claim benefits, deductions, or credits they missed.
While 38 percent believe they may have amounts still to claim, 72 percent said reviewing old returns feels like too much hassle.
Upon learning that prior tax returns can be amended, 34 percent said they are inclined to review them in case they missed any eligible credits. Despite this, many still find the process burdensome.
According to H&R Block, Canadians are leaving substantial sums unclaimed due to overlooked tax credits.
“There’s no doubt that there are likely hundreds of thousands of Canadians who have left money on the table from missed credits and benefits from prior tax returns,” said Yannick Lemay, tax expert at H&R Block Canada.
Lemay noted that H&R Block’s free Second Look service has uncovered an average of $3,000 in unclaimed credits and benefits per client from prior years.
He added, “We encourage Canadians to explore if and where they may have missed putting money back in their pockets from previous tax returns, and to focus on ensuring they don’t miss out on the tax credits and benefits that are most commonly missed.”
The company listed several tax credits and deductions that are frequently overlooked:
-
Child Care Expense Deduction: Up to $8,000 per child under age 7, $5,000 per child aged 7 to 16, and $11,000 for a disabled child.
-
Canada Caregiver Credit: Non-refundable tax credit of up to $8,375 for Canadians supporting a spouse, partner, child or dependent with a disability or medical condition.
-
Medical Expense Tax Credit: Applies to expenses including prescription glasses and sunglasses, dental work, gluten-free food for celiac disease, travel over 40 km for medical treatment, and mental health services.
-
Canada Workers Benefit: Refundable credit of up to $1,590 for individuals or $2,739 for families with low income in 2024.
-
Tuition and Education Tax Credits: Students can transfer up to $5,000 in unused credits to a parent, spouse or grandparent. Unused credits can be carried forward indefinitely.
-
Interest on Student Loans: Interest paid in 2024 or any of the past five years can be claimed.
-
Home Accessibility Tax Credit: Offers a credit of up to $3,000 (or $2,500 in Quebec) on renovations improving home accessibility for seniors or people with disabilities.
-
Moving Expenses Deduction: Eligible for those who move at least 40 km closer to work or school, including costs like travel, temporary housing, and real estate fees.
-
Disability Tax Credit: Non-refundable credit of up to $9,872 for individuals with prolonged mental or physical impairments, including ADHD, diabetes or mental health conditions.
-
First-Time Home Buyers' Tax Credit: A $10,000 credit saving $1,500 in taxes ($1,200 in Quebec).
According to H&R Block, over 400 tax credits and deductions are available, but many go unclaimed each year.
The deadline for most Canadians to file their 2024 taxes is April 30. Self-employed Canadians and their partners have until June 15.
