3 Tax Credit Available for Ontarians

The Ontario provincial government launched their Fall Economic Statement on November 2021, which blanketed a few extensions for tax credit you may claim.

The three credits you can keep your eye out for are:

1. Staycation Tax Credit

This credit allows you to claim up to 20% of the cost of an approved accommodation on your 2022 tax return.\

You can apply for this credit even if you don’t owe any taxes this year. You can claim this credit if you stay in eligible accommodations from January 1 to December 31, 2022. Eligible accommodations include hotels, resorts, Airbnbs, Bed and Breakfasts, Motels, Campgrounds, Etc.

It is also worth noting that other costs, such as food or entertainment, can’t be claimed with this credit.

Families can receive a reimbursement of up to $400 for up to $2,000 in accommodation expenses. Individuals can claim up to $1,000 in expenses and obtain a refund of up to $200.

What are the trip requirements?

There are a few further requirements, such as the trip had to be:

  • For leisure
  • Not reimbursed by an employer, friend, etc.
  • Paid for by the person filing the tax (Spouses, common-law partners, or eligible children can also help pay!)
  • Shorter than one month
  • Subject to HST

How do you apply for this credit?

More information on how to apply for this new credit will be available soon; if you don’t want to miss out on key information like this, tune in to our website and social media channels (Facebook | Linkedin | Twitter). Meanwhile, if you’re out and about in Ontario, remember to keep your receipts.

2. Ontario Job Training Credit

The Ontario Job Training Credit is being extended for the 2022 tax season. The requirements for the Ontario Job Training Credit are pretty much the same as the Canada Training Credit. The only difference is that you have to be an Ontario resident.

This temporary credit offers individuals 50% of their eligible expenses, for a refund of up to $2,000.

To be eligible for this credit, you must meet the following requirements:

  • You were a resident of Ontario on December 31, 2022
  • You’re between the ages of 26 to 65
  • You have a Canada training limit above zero
  • Tuition fees are paid to an eligible Canadian education institution

What’s an eligible education institution?

Eligible institutions include:

  • A college, university, or other institutions that provide courses at a post-secondary level
  • An institution that provides occupational skill courses

To find out if your school is an eligible education institution, visit the federal government website.

How do you find out if you have a Canada training limit?

To find out if you have a Canada training limit, you’ll need your previous Notice of Assessment (NOA).

You can find your notice online in your CRA My Account.

3. Ontario Seniors’ Home Safety Credit

If you’re over the age of 65 (a senior) or live with someone over 65, good news! The Ontario Seniors’ Home Safety Credit is also being extended into 2022. All the same eligibility criteria will remain the same going forward. This means it will remain open to senior homeowners, renters, or individuals whose senior relatives live with them. 

This refundable tax credit is worth 25% of the cost of your renovations. You can claim up to $10,000 for your expenses, meaning the highest refund you can get is $2,500.

What are eligible expenses you can claim?

Some of the eligible expenses you can claim include:

  • Grab bars and other related reinforcements for the bath, toilet, and shower
  • Wheelchair ramps, stair lifts, and elevators
  • Walk-in bathtubs
  • Wheel in showers
  • Additional light fixtures
  • Non-slip flooring
  • Automatic garage door openers

For a full list of eligible expenses, visit the Ontario provincial government website. It’s also important to make sure that if the payment was done in multiple payments or installments that the final payment should be paid off in 2022.

Keep in mind that all renovations should be done to your main residence, the home where you usually live. If you’re renovating a secondary residence, you must intend to move into that home within 24 months.

How do you apply for this credit?

You can claim the Ontario Seniors’ Home Safety Credit even if you don’t owe any taxes when you file your return. If you’re filing a paper return, you’ll need to submit your receipts. But if you’re filing online, it’s recommended to hold on to your receipts from vendors, suppliers, and contractors in case the CRA wants to see them later.

Don’t want to miss a single credit? IDM Professional Corporation CPA is here to help you get the most out of your return.