Personal Income Tax Benefit & Credits for Ontarians
While the tax filing deadline is still months away, Canadians (especially Ontarians) should start sorting through receipts as some personal tax credits and benefits may be available this year.
Staycation Tax Credit – Ontarians who stayed in a hotel or rented a cottage in the province between January 1 and December 31, 2022, regardless of the timing of payments for the stays, can claim 20% of eligible accommodation expenses. Travel expenses other than food, entertainment, and gas can be claimed up to $1,000 for an individual if paid by you, your spouse or common-law partner, or your eligible child and must be accompanied by receipts. As such, an Ontario resident can receive up to $200 back for every $1,000 spent on vacation. More information can be found here.
Seniors Care at Home Tax Credit – Seniors with low to moderate income who have eligible medical expenses, including expenses for aging at home, may be eligible for additional tax credits. Seniors aged 70 and up who are residents of Ontario at the end of the tax year can deduct up to 25% of their medical expenses and claim up to $6,000 for a maximum return of $1,500. The credit is refundable, and anyone earning up to $65,000 per year is eligible, though the amount of credit is calculated on a sliding scale based on income level. The credit can be claimed in addition to the non-refundable federal and Ontario medical expense tax credits for the same eligible expenses, and as always, must accompanied with their receipts. Of course, you must keep all receipts for any eligible expenses you claim for the credit. More information can be found here.
Child Care Tax Credit – Families with a household income of $150,000 or less may be able to claim up to 75 per cent of childcare expenses, including licensed daycare facilities, in-home caregivers, babysitters, day camps, and nannies. Parents must keep all receipts for childcare expenses claimed for up to seven years, as the CRA may request them. Each receipt should be addressed to the individual who paid for the childcare services. If childcare is provided by a single person, the receipt should include the caregiver’s social security number. More information can be found here.
Canada Dental Benefit – The new Canada Dental Benefit is an interim financial assistance program administered by the Canada Revenue Agency (CRA). Families earning less than $90,000 per year with a child under the age of 12 who does not have access to a private dental insurance plan can apply through the CRA beginning December 1, 2022. People who use the program must also provide the CRA with the dentist’s name and the date of the appointment. They must keep their bills for the work done in case the CRA requests proof that it occurred. More information can be found here.
If you have any questions or concerns about personal tax credits and benefits, as well as the tax implications of such transactions, give us a call today! We are here to help.
This article provides information of a general nature only. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in this article. If you have specific legal questions, you should consult a lawyer.