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The Top 4 Commonly Misapplied Tax Deductions


Whether you turn to a professional firm or prepare your own taxes, your signature says you agree with the contents of your return.


When errors or questions arise with The Canada Revenue Agency regarding your return, you may face delays in the processing of your return, or worse... an audit resulting in additional tax, penalties and interest.


Skip the stress of dealing with CRA later! Take the time to learn more about these commonly misapplied deductions. Click the headline links below to learn more or talk to your tax preparer for more details:


Other Deductions: Income amounts repaid - Line 23200


Did you repay any of the following in the current tax year:

  • Old Age Security?

  • Employment insurance?

  • Canada Pension Plan or Quebec Pension Plan benefits?

  • Scholarships, bursaries or research grants?

  • Retiring allowances?

  • Shareholder loan?

  • Policy Loan (under life insurance policy)?

  • Registered disability savings plan?

These repayments can be claimed on line 23200 under "Other Deductions"


COMMON FILING ERRORS: Child Support, Spousal support, and Personal loan payments DO NOT qualify.


Caregiver Amount for eligible dependent age 18 or older- Line 30425


Are you the caregiver for any dependent 18 years of age or older? Is their income between $7,295 and $24,361? You may be able to claim an amount up to a maximum of $7,276 on line 30425 of your return.


COMMON FILING ERRORS: Your dependent must be eligible. Most children over the age of 18 still living at home DO NOT qualify.


Medical Expenses- Line 33099


You can claim on line 33099 of your return the total eligible medical expenses you or your spouse or common-law partner paid for each of the following persons:

  • yourself

  • your spouse or common-law partner

  • your or your spouse’s or common-law partner’s children under 18 years of age at the end of the year

Eligible medical expenses include:

  • payments to a medical doctor, dentist, nurse, or certain other medical professionals or to a public or licensed private hospital

  • payments for prescription drugs, artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses or contact lenses, dentures, pacemakers, and certain prescription medical devices

  • premiums paid to private health services plans (other than those paid by an employer)

  • premiums paid under a provincial or territorial prescription drug plan, such as the Quebec Prescription Drug Insurance Plan and the Nova Scotia Seniors’ Pharmacare Program (amounts or premiums paid to provincial or territorial government medical or hospitalization plans are not eligible)

  • certain cannabis products purchased for a patient for medical purposes

  • certain expenses incurred for an animal specially trained to assist a patient

COMMON FILING ERRORS: You can not claim medical expenses without proper documentation and invoices/receipts. Amounts from unlicensed practitioners DO NOT qualify. PPE, facemasks and hand sanitizer are not eligible medical expenses.


Interest paid on your student loans - Line 31900

You can claim an amount for the interest paid on loans in 2020 or the preceding 5 years. Loans must be for post-secondary education and received it under:

  • the Canada Student Loans Act

  • the Canada Student Financial Assistance Act

  • the Apprentice Loans Act

  • provincial or territorial government laws similar to the acts above Qualified student loans ONLY. Personal loans do not apply.

COMMON FILING ERRORS: Personal loans DO NOT apply. Only the above qualified loans apply.


Note: Tax Laws may change. Always refer to the CRA website for the most current information.



ProStrata-G ProAdvisors are ready to help you prepare your taxes and avoid the common errors which may trigger an audit from The Canada Revenue Agency. Looking for advice before tax season is here? Call today for expert tax planning. 204-594-4214






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