T1 Tax Savings Guide

If you worked from home for any portion of 2025, you may be eligible to claim home office expenses using the detailed method. This includes a proportionate share of rent, utilities, internet, and office supplies. You'll need a signed T2200 from your employer. The detailed method often yields $400–$1,500+ depending on your situation.

If your employment requires you to travel (not just commuting), and your employer has signed a T2200, you can deduct vehicle expenses like gas, insurance, maintenance, and parking — proportionate to work use. Keep a mileage log.

Annual union dues and professional membership fees (CPA dues, engineering associations, law societies) are fully deductible on Line 21200. Check your T4 Box 44, or your professional body's receipt.

RRSP contributions made by March 3, 2026 can be deducted on your 2025 return. At a 43.41% marginal rate (Ontario, $100k–$150k income), every $10,000 contributed saves you approximately $4,341 in tax. Check your RRSP deduction limit on CRA My Account.

If you're a first-time home buyer, the FHSA allows you to contribute up to $8,000/year (lifetime max $40,000) and deduct it like an RRSP — but withdrawals for a qualifying home purchase are completely tax-free. This is one of the best tax shelters available.

If one spouse earns significantly more, contributing to a Spousal RRSP lets the higher earner claim the deduction now, while the lower-income spouse withdraws at a lower tax rate in retirement. The contribution uses the higher earner's RRSP room.

You can claim any 12-month period ending in 2025 — it doesn't have to be Jan–Dec. Choose the 12-month window that maximizes your eligible expenses. Include: prescriptions, dental, physio, massage therapy (if prescribed), glasses, travel for medical treatment (40+ km), and health insurance premiums you paid yourself.

Post-secondary tuition reported on a T2202 is a non-refundable credit. If you can't use it all this year, it carries forward indefinitely. Up to $5,000 can also be transferred to a parent, grandparent, or spouse.

Ontario residents 65+ can claim the Ontario Seniors' Public Transit Tax Credit — 25% of eligible public transit costs. Keep your Presto statements or transit receipts.

The first $200 of donations gets a 15% federal credit. Everything above $200 gets 29% (or 33% if income exceeds $220k). Strategy: Combine your and your spouse's donations on one return to get past the $200 threshold faster. You can also carry forward donations up to 5 years.

Self-employed individuals can deduct the business-use portion of: rent/mortgage interest, property tax, utilities, internet, insurance, and maintenance. Calculate the square footage of your dedicated workspace vs. total home. This is often $2,000–$5,000+ per year.

The business-use portion of your phone plan, internet, and software subscriptions (accounting, design, project management) are deductible. Be reasonable with the percentage — CRA looks for consistency.

Purchased a laptop, camera, or other equipment for your business? You can claim depreciation through CCA. Class 50 (computers) allows 55% declining balance. The Accelerated Investment Incentive may let you claim even more in year one.

As a newcomer, you only report worldwide income from your date of Canadian residency. However, you may still need to report foreign income on a T1135 if you hold foreign assets over $100,000 CAD. Getting this right in year one avoids costly corrections later.

Canada has tax treaties with 90+ countries. If you're being taxed on the same income in two countries, you may be entitled to a Foreign Tax Credit to avoid double taxation. This is especially relevant for investment income from your home country.

You won't have RRSP room in your first year. It builds based on your earned income from the prior year. File your return even if you owe nothing — it starts building your RRSP room, qualifies you for GST/HST credits, and establishes your CRA account.

While not a tax credit on your return, your T1 determines your CCB payments. For 2025, it's up to $7,787 per child under 6 and $6,570 per child aged 6–17. Filing on time ensures uninterrupted payments. RRSP contributions lower your net income, which can increase your CCB.

If your spouse earned less than $16,129 in 2025, you can claim the spousal amount. The credit is the difference between $16,129 and their net income, multiplied by 15%. This alone can save you up to $2,419.

Daycare, before/after school care, day camps (not overnight), and nanny expenses are deductible. The claim is typically made by the lower-income spouse. Limits: $8,000/child under 7, $5,000/child aged 7–16. This is a deduction, not a credit — it directly reduces taxable income.