insights
Oct 23, 2025
Mackisen
Top Tax Deductions And Credits Every Canadian Should Know In 2025
Most Canadians unknowingly overpay their taxes every year. They miss thousands in deductions and credits simply because the system is too complex and constantly changing. In 2025, new CRA reporting requirements and stricter audit procedures mean that claiming the wrong credit—or failing to claim a legitimate one—can lead to reassessment, penalties, or lost refunds.
Every number you report must comply with both federal and provincial rules. CRA and Revenu Québec cross-match every claim electronically. If your medical expenses, childcare costs, or donation credits appear inconsistent with your income level, the return is automatically flagged. The result? Delayed refunds, requests for documentation, and potential audits.
At Mackisen CPA Auditors Montreal, we help clients maximize legal deductions while ensuring each claim meets the standards of the Income Tax Act and the Quebec Tax Administration Act. Our team builds your return to be both profitable and defensible—ensuring you receive every dollar you’re entitled to, without audit risk.
Legal and Regulatory Framework
Income Tax Act (Canada)
Section 118: Outlines personal tax credits including basic personal amount, age, disability, and medical credits.
Section 62: Governs moving expense deductions.
Section 63: Covers childcare expenses for dependent children.
Section 146 and 146.01: Define RRSP and FHSA contributions and deduction limits.
Section 118.1: Covers charitable donations and applicable credit rates.
Tax Administration Act (Quebec)
Aligns with federal standards but applies unique thresholds for provincial credits such as the Quebec Solidarity Tax Credit, Tuition Credit, and Family Allowance adjustments.
At Mackisen, we work with you to ensure every deduction and credit is accurately reported, supported, and legally compliant. We verify your eligibility, document each claim, and protect you from future reassessments—so that you receive your full entitlement with no liability on our part.
Enforcement and Case Law
Guindon v. Canada (2015): CRA penalties for false statements are enforceable, even for small errors.
Jordan v. The Queen (2009): CRA can impose compounded interest on incorrect claims.
Venne v. The Queen (1984): Filing errors, even if unintentional, result in penalties.
Loyola Construction Ltd. v. Canada (1992): Unsupported deductions can be denied in full during audit.
These cases reinforce one rule: accuracy is mandatory. Claims must be based on evidence, not assumption.
The Most Overlooked Deductions and Credits in 2025
Medical Expenses: Prescription drugs, dental care, and certain alternative therapies approved under CRA guidelines.
Charitable Donations: Combine spousal donations to increase the credit rate.
Tuition and Education Credits: Transfer unused credits from children to parents or grandparents.
Home Office Expenses: Valid for remote workers; must follow CRA’s detailed method or simplified flat-rate rule.
RRSP and FHSA Contributions: Deductible contributions lower taxable income while building future savings.
Moving Expenses: Must be work or education related and meet the 40-kilometre rule.
Disability Tax Credit: Applicable for individuals with prolonged medical conditions.
Childcare Expenses: Deductible if paid to registered caregivers or facilities.
Union Dues and Professional Fees: Fully deductible if directly tied to employment.
Employment Expenses: Vehicle, supplies, or home-office costs with Form T2200 from your employer.
The key to maximizing these benefits is precise documentation. One unsupported receipt or exaggerated claim can convert a refund into an audit.
Mackisen’s Tax Optimization Strategy
Documentation Review: Collect and verify every eligible receipt before filing.
Dual Compliance Check: Ensure claims meet both CRA and Revenu Québec criteria.
Credit Stacking: Combine compatible deductions for higher refunds.
Audit Protection File: Build a CRA-ready record for each deduction.
Year-Round Planning: Adjust future RRSP and FHSA contributions to reduce next year’s liability.
Our professionals don’t just file—we strategize. Each credit is evaluated for long-term value, audit safety, and eligibility.
Real Client Results
A Montreal teacher missed $3,200 in eligible medical expenses due to improper record-keeping. Mackisen corrected the filing and secured the refund retroactively.
A self-employed consultant was denied $7,500 in home office deductions during an audit. Mackisen appealed, presented documentation, and reversed the reassessment in full.
Common Questions
Which deductions does CRA audit most often? Medical, childcare, and business-use-of-home claims.
Can I claim both RRSP and FHSA contributions? Yes, both are valid and fully deductible under their respective limits.
What happens if CRA denies a credit? Mackisen files a Notice of Objection with supporting documentation.
How can I avoid errors? File with a CPA Auditor. We confirm every claim meets CRA and Revenu Québec rules.
Why Mackisen
Maximizing your deductions isn’t just about saving money—it’s about compliance, protection, and peace of mind. Mackisen CPA Auditors combine legal precision, audit-ready documentation, and genuine care to help clients claim every legitimate credit while avoiding penalties.
We stand beside you throughout the process—with empathy, professionalism, and a commitment to accuracy that safeguards your finances for years to come.
Call Mackisen CPA Auditors Montreal today for your 2025 tax optimization review. The first consultation is free, and your savings begin immediately.
