The Covid-19 pandemic raised a lot of questions when it came to taxes in Canada, for residents and non-residents alike!
One of the many aspects of taxes that non-residents have discussed struggling with is what they can claim back on their tax returns.
In this blog post, we’ll outline whether you can claim a COVID-19 test back on your tax return.
Can I claim back the costs of COVID-19 tests on my tax return?
In theory, the answer to this is yes.
The CRA has offered clarification on this issue as many people assumed they could not claim them.
If the test is prescribed by a medical practitioner, and you have evidence of this, you could be able to claim a percentage of the cost back.
While the term “prescribe” is not defined directly it can be assumed that the CRA would generally rely on ordinary definitions meaning that standard doctor prescription makes it applicable.
Can I claim face masks on my Canadian tax return?
Unlike COVID-19 tests, it is highly unlikely you can claim back the costs of face masks on your tax return.
There are only exceptional cases where you may be able to claim back on these costs.
For example, on a list of prescribed devices or equipment defined by the CRA, the nearest thing to a face mask is defined as an “air or water filter or purifier for use by an individual who is suffering from a severe chronic respiratory ailment or a severe chronic immune system dysregulation to cope with or overcome that ailment or dysregulation.”
Also, in order for the filter to qualify, it must be used by someone who is suffering from a particular ailment, such as asthma or cystic fibrosis.
How is COVID-19 Affecting Working Holidaymakers in Canada?
When should I file my tax return?
If you already owe the CRA money and do not pay before the tax deadline, you may incur a penalty fee of 5% as well as what you already owe if you did not file before or on 30 April 2022.
Filing your tax return is the smart thing to do, as you will find out if you are due a big tax refund!
There is no penalty for filing late if you are due a refund or if you do not owe money to the CRA.
A lot of nonresidents in Canada were affected by the pandemic, with many receiving benefits related to the levels of unemployment as a result.
If you received any payments, you should file your tax return so that you remain on the right side of the tax authorities.
What other expenses can I claim on my tax return?
A lot of non-residents are unaware of what they can and cannot claim on their tax returns – this is only natural!
However, you may be able to claim back a variety of expenses, for example, fees for tuition, medical expenses, interest on student loans, and donations!
Also, you may be able to claim back on transportation and storage of personal effects, travel, and temporary accommodation as some lesser-known reliefs.
Of course, you will need the receipts of these expenses as evidence. This is due to the fact that in Canada you must have valid documentation of expenses claimed for a period of up to 6 years.
How to claim your Canadian tax refund?
You could be due a lot of tax back from your time in Canada – even if you have not left yet!
After all, Taxback.com’s average tax refund is $998!
Taxback.com has over 20 years of experience in getting taxes back for non-residents in Canada.
They’ll make sure you get the largest possible tax refund.
Why use Taxback.com?
Here are some of the many reasons to use the experts at Taxback.com:
- You can get your maximum legal refund transferred to any bank account in the world!
- It’s an easy-to-use and convenient online service
- Their team will ensure you claim back on any expense and relief you’re eligible for.
- Have any tax questions? They have a dedicated Live Chat team that is there to assist you 24 hours a day, 7 days a week.