Tax deductions you should know about
By Stephanie Farrington • Bankrate.com

The deadline to file your 2009 tax return is coming up fast -- April 30, 2010. Do you know where your deductions are?

Most Canadians, even those with the simplest tax profiles, can benefit from taking a hard look at their everyday expenses that may make the difference between sending a hefty payment to the tax man or getting a cheque in the mail.

"Deductions are imposed by the government of Canada to achieve equality. It's about fairness," explains Ahmed Ibrahim, a tax accountant based in Ottawa. "Deductions are there to achieve some sort of balance between what you owe in tax and what you pay to make an income."

But, as Ibrahim notes, the Canada Revenue Agency, or CRA, will not point out deductions you have missed. "In general, if you don't claim it, you don't get it. They can't look over the return of every single Canadian."

Just in case you overlooked a few of the areas where the government picks up the tab, here are a few ideas.

Family dependants
If you've seen H&R Block's recent TV ads and wondered if you really can deduct some money for your 30-year-old son living at home, the answer is yes -- in some cases.

When you have a family member living with you who makes less than $18,534 a year, you can deduct $4,198 for the expenses you incur in providing him or her with a home.

The relative must be over 18 and can be a son, daughter, niece, nephew, brother, sister, aunt, uncle, grandparent or parent, but here's the catch -- they must have a have physical or mental disability. In the case of your grandparents, they must also be over 65.

Writing off a hobby
Let's say you're a salaried employee who loves music or art and makes a bit of money on the side at these activities. You can deduct some of the expenses you incur in the course of making your art.

If you travel to play concerts as a musician and earn some money from performing, you can claim a portion of your expenses as a deduction on your income tax form. So, your little hobby can not only make you some money, but it can save you a little on your taxes.

Working from home
Are you a renter who works from home? If you are, then the portion of the rent on the part of your home in which you regularly work is deductible, as are some of the expenses of maintaining it.

You have to use the space only for work and do at least 50 percent of your work there or regularly meet clients there to qualify. But if you work at home, this can represent a substantial deduction.