Last updated: September 03 2008

Recovering Missed Tax Deductions and Credits Help Cash-Strapped Parents

Cash-strapped? The tax return is a great place to look for new cash. Many taxpayers miss lucrative deductions and credits each year and can file an adjustment to their returns to reap their just rewards. To do so complete Form T1ADJ.

One of the most commonly missed tax deductions is the GST Rebate, claimed by individual taxpayers on Form GST370. Tax advisors should ask new clients if they qualified for it in any of the past 10 years. If it was missed, the rebate is recoverable. Here are some quick tax facts about making a claim:

  • Employees who claim employment expenses on Line 229 of their T1 return and are not in receipt of a reasonable allowance for those expenses may apply for a cash rebate of any GST or HST paid on these expenses on Line 457.

  • Expenses eligible for the rebate include:

    • office expenses,
    • travel expenses,
    • entertainment expenses,
    • meals and lodging,
    • motor vehicle expenses,
    • leasing costs,
    • parking cost;
    • miscellaneous supplies (e.g. street maps, stamps, pens, pencils, and paper clips), and
    • capital cost allowance on motor vehicles, aircraft, and musical instruments acquired after 1990
    • tradesperson's tools
    • apprentice vehicle mechanic's tools

  • With the GST rate reduction as of January 1, 2008, the rebates are 5/105 and 13/113 for expenses on which GST and HST is paid.

Prior Filing GST Rebate Omissions

Taxpayers who have failed to claim the GST/HST rebate in prior years may file adjustments to recover this credit for the prior ten year period.