Most of us are familiar with the tax savings that are available to us when we make contributions to a Registered Retirement Savings Plan (RRSP). Each year we are allowed to make a contribution to our RRSP that is roughly equivalent to 18% of our yearly income.

One of nice things about the RRSP contribution is that you can carry amounts forward from previous years. So, let's say that you didn't make a full contribution in 2011, but in 2012 you had some extra income, you can make your full RRSP contribution for 2012 plus the difference from the year before.

An RRSP is a great way for Canadians to help reduce the amount of income tax they pay each year. Depending on your total income and the amount of your RRSP contribution, you may even see a refund on your income tax statement.

Besides your RRSP contributions, there are several other deductions that may be available to you and your household. Taking advantage of them can mean some extra savings that you can use for other things. Here are a few deductions that you may not be aware of.

Child care expenses: If you have a child under 16 years old and you've paid child care expenses so that you could go to work or attend school, you may be eligible for a child care tax deduction.

Sports and arts activities for children: There are children's programs and activities that are eligible for tax credits.

Typically the program administrator should be aware if their program qualifies – it doesn't hurt to ask. Here are some general guidelines for eligible programs:

• Program must be at least eight weeks consecutive or five days long.
• At least half of the activity must involve significant physical or artistic activity.
• Sports must build muscular strength, endurance, flexibility or balance.
• Arts must focus on literary, visual, or performing arts, music or language.

Medical expenses: You can claim non-refundable tax credits for medical expenses. Non-reimbursed medical expenses can be claimed, including prescription medication, dental surgery that's not covered by insurance, or laser eye surgery.

Moving expenses: If you had to move at least 40 km to be closer to a new job, run your business or attend school then you're likely eligible to deduct moving expenses. These expenses include transportation, storage costs, reasonable costs for meals and accommodations, and costs related to changing your address, such as replacing your driver's licence and connecting or disconnecting utilities.

Most of us assume that many of the years expenses just aren't eligible, but it can really pay off to make sure that you are claiming every eligible expense that you are entitled too. As the saying goes, "a penny saved is a penny earned."