It can be easy enough to keep track of tax slips and receipts that show up in your inbox or mailbox. The bigger challenge is remembering tax credits that lack a clear paper trail.

Canadians “tend to miss out on credits for which they do not receive a tax slip,” said Yannick Lemay, tax specialist at H&R Block Canada.

Instead, it’s important for Canadians to learn which credits are available and to dig into their receipts to see whether they qualify.

Tax software can be helpful in reminding taxpayers about which credits are available, but “it’s not a perfect solution,” says Daniel LeBlanc, portfolio manager and CFO at Verecan Capital Management.

For example, software may not nudge users to enter every available niche credit or, in the case of medical expenses, prompt them to track and add up what needs to be added manually.

How do tax credits work in Canada?
Most tax credits are non-refundable, which means they can reduce the amount of tax you owe to the Canada Revenue Agency down to zero, but cannot generate a refund, LeBlanc says. If your credits exceed your tax bill, the excess is essentially lost.

There are some tax credit exceptions, however, such as the refundable Canada Training Credit, which covers the lesser of 50 per cent of eligible education expenses or your available Canada training credit limit.

What tax credits are often overlooked?
While some credits are missed entirely, others go unclaimed because taxpayers are unsure what qualifies. The medical expense tax credit is a good example of the latter, says Aurèle Courcelles, vice-president of tax and estate planning at IG Wealth Management.

For the 2025 tax year, the credit allows taxpayers to claim medical expenses that exceed the lesser of three per cent of their net income or $2,834.

“A lot of people don’t realize how broad the definition of medical expenses is,” Courcelles said.

People tend to think about prescription drugs, but medical expenses can also include prescription eyewear, dental services, gluten-free products for individuals with celiac disease and travel costs if a trip exceeds 40 kilometres for a medical appointment, he adds.

Eligible expenses can also include services from authorized medical practitioners such as acupuncturists, chiropractors and naturopaths, depending on the province.

Medical expenses can also include fertility-related costs, such as in-vitro fertilization, intrauterine insemination and egg and sperm preservation, Lemay adds.

Taxpayers also commonly misunderstand rules around the timing of medical expenses, Courcelles said.

“You can claim the medical tax credit for any 12-month period that ends in the year.”

For example, if you have bigger expenses from July 1, 2024, to June 30, 2025, you can use that period instead of January 1, 2025, to December 31, 2025, to help qualify for the three per cent net income threshold.

Couples can also pool medical expenses together to meet the minimum threshold, LeBlanc says.

It can be difficult for some individuals with higher incomes to meet the minimum threshold on their own, he says. If a lower-income spouse claims the expenses, they face a lower threshold, allowing more of the costs to be claimed.

What disability and senior-related tax credits are available?
The disability tax credit is another commonly misunderstood credit because many Canadians don’t realize that they’re eligible, Courcelles says. The definition provides a broader range of physical or mental conditions than people expect.

For example, Canadians living with mental conditions or diabetes may be eligible.

Canadian adults can claim a $10,138 federal disability amount, which works out to about $1,520 in federal tax savings, with additional provincial credits. Any unused portion can be transferred to a supporting person, including a spouse or family member, he adds.

Some home renovations may also qualify seniors and individuals eligible for the disability tax credit for relief. The home accessibility tax credit allows claims of up to $20,000 at a 15 per cent rate, for up to $3,000 in tax relief, Courcelles says, and covers certain renovations, such as installing ramps or walk-in showers, to improve safety and mobility.

Caregivers may also be eligible for the Canada caregiver credit if they support a dependent with a physical or mental impairment, such as a spouse or family member. For adult dependents, caregivers may claim $2,687, plus an additional $8,601, depending on the dependent’s income. Yahoo