What is a Tax Deductible?

A tax-deductible is an expense that you can subtract from your total income, reducing the amount of income subject to tax. The lower your taxable income, the less tax you owe!

Example in Action

Imagine you run an online coaching business. You earn $100,000, but after deducting business expenses like marketing, software, home office costs, professional development, and travel expenses related to work, your taxable income drops to $70,000. That’s the power of tax deductibles! If you’re a salaried professional, you might be able to deduct union dues, work-related education, or even moving expenses in some cases.

Common Tax Deductions You Might Be Missing

✔️ Home office expenses (if you work from home)
✔️ Internet and phone bills (business-related portion)
✔️ Medical expenses (above a certain threshold)
✔️ RRSP contributions (Registered Retirement Savings Plan)
✔️ Childcare expenses
✔️ Charitable donations
✔️ Interest on student loans
✔️ Vehicle expenses (if used for business)

Strategy to Apply Today

Review your last year’s tax return and identify deductions you might have missed. Are you claiming all eligible business and personal tax deductions? Keeping proper records and consulting a tax professional can help maximize your savings!