Medical expenses, charitable donations, and the deductions hiding in plain sight

Tax Credits You're Probably Missing

Think you've claimed everything? Most Canadians miss hundreds in medical credits and donation tax breaks. Here's what to look for on your 2025 return.

Most Canadians focus so hard on their RRSP deadline (and if you missed last week's post, go back and read it!) that they completely forget about a whole category of credits and deductions sitting quietly on their tax return, waiting to be claimed.

We're talking about medical expenses, charitable donations, union dues, caregiver credits, and more. These aren't obscure loopholes. They're legitimate credits the CRA designed specifically to put money back in your pocket. You just have to know they exist.

Let's fix that. Here's your complete guide to the credits you might be leaving on the table for your 2025 tax return.

Sources: CRA Canada.ca (verified February 2026), TurboTax Canada, TaxTips.ca.

Maximize Your Tax Return: Don't Miss Out on Credits for Medical Expenses, Charitable Donations, and More! Learn how to leverage tax benefits with insights from The Money Wise, covering essential deductions like union dues and caregiver credits.

💊  The Medical Expense Tax Credit (METC): Bigger Than You Think

The Medical Expense Tax Credit (METC) is one of the most underused credits in Canada — and one of the most misunderstood. Here's the basic rule:

How the METC Works (2025 Tax Year)

You can claim eligible medical expenses that exceed the lesser of:

    • 3% of your net income  OR  $2,834 (2025 federal threshold)

The federal credit is 14.5% of the amount above that threshold.

Ontario also adds a provincial credit on top, see line 58689 of Form ON428.

Source: CRA Lines 33099 & 33199 | canada.ca (verified Feb 2026)

Quick example: David earns $60,000 in Ontario. His 3% threshold is $1,800. If he has $4,800 in eligible medical expenses, he can claim credit on $3,000 ($4,800 − $1,800). At the combined federal + Ontario rate of roughly 28%, that's about $840 back.

Commonly missed eligible expenses:

• Prescription glasses and contact lenses (including prescription sunglasses)

• Dental work — crowns, root canals, braces, cleaning that your insurance doesn't cover

• Prescription medications — anything dispensed by a pharmacist with a prescription

• LASIK and corrective eye surgery

• Hearing aids and batteries

• Physiotherapy, massage therapy (must be prescribed), chiropractic care

• Mental health therapy — psychologist or social worker fees (varies by province)

• Travel costs for medical treatment — mileage, meals, accommodation if 40+ km away

• Fertility treatments and IVF — now broadly eligible, including medications

• Service animals — food, training, and vet care for a certified assistance animal

• Gluten-free food premium (for individuals with celiac disease, with diagnosis)

• Private health insurance premiums shown on your T4 (Box 85)

• Provincial drug program co-pay fees — even small dispensing charges add up

Expenses that do NOT qualify:

• Over-the-counter medications (even if you use them regularly)

• Gym memberships or fitness classes (federal credit ended in 2017)

• Cosmetic procedures — teeth whitening, facelifts, liposuction

• Vitamins and supplements (unless prescribed for a specific condition)

💡  Pro Strategy: Pool Your Expenses + Claim the Right Person

You can claim eligible expenses from any 12-month period ending in 2025.

Combine your expenses, your spouse's, and your dependent children under 18 on ONE return.

It is usually better for the lower-income spouse to claim, but run both scenarios!

You may also pool two calendar years of expenses into one claim to clear the 3% threshold faster.

New for 2025: CRA now allows up to 29 consecutive months of treatment in a single claim (extended from 24 months).

❤️  Charitable Donation Tax Credit: Give More, Pay Less

Canadians are generous — and the tax system rewards that. But many people either forget to file their receipts, donate below the optimal threshold, or miss the carry-forward opportunity. Here's how the credit actually works:

Your Donation	Federal Credit Rate	Ontario Rate (added on top)
First $200	15%	~5.05%
Above $200	29%	~11.16%
Above $200 (if income > $253,414)	33%	~13.16%

Source: CRA Line 34900 | canada.ca + KPMG TaxNewsFlash Canada, Nov 2025

In Ontario, if you donate $1,000 to a registered charity and your income is under $253,414:

• Federal + Ontario credit on first $200 ≈ $40

• Federal + Ontario credit on next $800 ≈ $321

• Total tax savings: approximately $361 — a real $361 back in your pocket

Smart donation strategies:

1. Bundle your donations. If you donate small amounts to multiple charities across two or three years, consider combining them into a single year's return. This gets you above the $200 threshold faster, and into the higher 29% credit rate.

2. Have the higher-income spouse claim all donations. Either you or your partner can claim the full family total on one return. Higher income = higher provincial rate = bigger combined credit.

3. Carry forward unused donations up to 5 years. If you didn't claim donations in 2021, 2022, 2023, or 2024, you may still be able to claim them on your 2025 return. Log into CRA My Account to check.

4. Donate appreciated securities instead of cash. This is a powerful strategy for investors. When you donate publicly traded stocks directly to a registered charity, you get the full donation credit at fair market value AND pay zero capital gains tax on the gain. Cash donations don't give you the second benefit.

⚠️  Always verify your charity is CRA-registered

Only donations to CRA-registered charities and qualified donees qualify for the tax credit.

Before you donate, search: canada.ca/charities-registry

Tip: Always get and keep your official donation receipt — CRA will ask for it if audited.

Maximum claim per year: 75% of your net income. Carry the rest forward up to 5 years.

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📋  Other Credits You're Probably Missing

Union & Professional Dues

If you pay dues to a trade union, professional association, or regulatory body as a condition of your employment, you can deduct them dollar-for-dollar from your taxable income. Check Box 44 on your T4 slip, it's often right there. If you pay dues directly (not through your employer), save those receipts.

Example: $800 in union dues × 30% tax bracket = $240 saved. Easy money.

Canada Caregiver Credit

Supporting a spouse, parent, grandparent, sibling, or dependent child with a physical or mental impairment? The Canada Caregiver Credit is a non-refundable tax credit that can make a real difference.

• Spouse or common-law partner: up to $2,616 credit

• Dependent 18 or older: up to $8,375 credit

• Child under 18 with impairment: $2,616 credit

Note: The CRA may request a signed statement from a medical practitioner confirming the impairment. Keep documentation on file. Source: RBC Insurance / CRA 2025.

Managing Finances: A stack of bills, receipts, and tax documents sits on a wooden table, highlighting the importance of financial organization. A Canadian hundred-dollar bill adds a monetary perspective to the task. A cup of coffee suggests a thoughtful approach to budgeting, as featured on themoneywise.ca.

Home Accessibility Tax Credit (HATC)

If you made renovations to your home to improve safety or accessibility for a senior (65+) or someone with a disability, you can claim up to $20,000 in eligible renovation expenses for a maximum credit of $3,000 (15% × $20,000). Think: grab bars, wheelchair ramps, walk-in showers, or widened doorways.

Multigenerational Home Renovation Tax Credit (MHRTC)

Brand new and worth knowing: this refundable credit lets you claim 15% of up to $50,000 in eligible renovation costs, up to $7,500 back when you create a secondary suite in your home for a senior or a qualifying adult with a disability to live with family.

Canada Training Credit

Working Canadians accumulate $250 in Canada Training Credit room each year (up to a $5,000 lifetime limit). This is a refundable credit, meaning you get money back even if you owe no tax, equal to 50% of eligible tuition and training fees. Check your Notice of Assessment to see how much room you have built up.

Digital News Subscription Credit

Subscribe to a qualifying Canadian digital news outlet? You can claim up to $500 in subscription costs for a 15% credit, saving up to $75. Small, but free money is free money.

Moving Expenses

If you moved at least 40 km closer to a new job, business, or full-time post-secondary school in 2025, your moving costs may be deductible, including truck rentals, professional movers, travel costs, temporary accommodation, and even certain costs of buying your new home or selling your old one.

🗂️  Quick Reference: Credits at a Glance

Credit / Deduction	What You Can Claim	Where on Your Return
Medical Expense Tax Credit	Eligible expenses above 3% net income / $2,834	Line 33099 / 33199
Charitable Donations	15% on first $200 + 29% above $200	Line 34900 / Schedule 9
Union & Professional Dues	100% of dues (dollar-for-dollar deduction)	Line 21200
Canada Caregiver Credit	Up to $8,375 per qualifying dependent	Line 30400 / 30425
Home Accessibility Tax Credit	15% of up to $20,000 in eligible renos	Line 31285
Multigenerational Reno Credit	15% of up to $50,000 — max $7,500 refundable	Line 45355
Canada Training Credit	50% of eligible tuition, up to accumulated limit	Line 45350
Digital News Subscriptions	15% of up to $500 in qualifying subscriptions	Line 31350
Moving Expenses	Eligible costs if moved 40+ km for work/school	Line 21900

Source: CRA canada.ca, verified February 2026. Provincial credits vary — check Form 428 for your province.

Organizing Documents: Transforming Tax Chaos into Clarity.

✅  Your Action Plan Before You File

1. Pull 12 months of receipts: medical, dental, pharmacy, therapy, optometry, every one counts.

2. Check your T4: Box 44 for union dues, Box 85 for private health plan premiums.

3. Gather donation receipts: Log into CRA My Account to check for unclaimed donations from 2020–2024.

4. Decide who claims what: Medical and donations are often best on the lower-income spouse's return, but run both scenarios.

5. Note your Canada Training Credit room from your most recent Notice of Assessment.

6. Ask yourself: Did I support a caregiver-eligible dependent in 2025? Did I do any home accessibility renos? Did I move for work?

📚  Resources & Official Sources

• CRA Medical Expenses guide (RC4065): canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065.html

• CRA Lines 33099 & 33199 (Eligible Medical Expenses): canada.ca

• CRA Line 34900 (Donations & Gifts): canada.ca

• CRA Charities Registry (verify before donating): canada.ca/charities-registry

• CRA All Deductions & Credits: canada.ca/en/revenue-agency/services/tax/individuals

• CRA My Account (check training credit room, donation history): canada.ca/my-cra-account

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Next week: Seniors & Retirees, maximizing pension income, OAS, CPP, RRIF withdrawals, and the credits you shouldn't miss. Stay tuned!

Disclaimer: This content is for educational purposes only and does not constitute professional tax advice. Tax laws are based on CRA guidelines for the 2025 tax year as of January 2026. Individual circumstances vary; always verify current rules at canada.ca/taxes or consult a licensed tax professional for personalized advice.

The Money Wise | Tax Season Blog Series 2026 

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