RIGHT WAY TAXES

02/07/2023

02/07/2023

Ontario Staycation Tax Credit
Overview
The temporary Ontario Staycation Tax Credit for 2022 aims to encourage Ontario families to explore the province, while helping the tourism and hospitality sectors recover from the financial impacts of the COVID‑19 pandemic.

Ontario residents can claim 20% of their eligible 2022 accommodation expenses, for example, for a stay at a hotel, cottage or campground, when filing their personal Income Tax and Benefit Return for 2022. You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner or eligible children, to get back up to $200 as an individual or $400 as a family.

The credit will provide an estimated $270 million in support to about 1.85 million Ontario families.

Who is eligible
You are eligible to claim the credit if you are an Ontario resident on December 31, 2022.

Only one individual per family can claim the credit for the year. Your claim can include the eligible expenses of your spouse or common-law partner and your eligible children. An eligible child is not entitled to claim the credit.

If you do not have a spouse or common-law partner, or eligible child, you can claim your own eligible expenses for the credit.

Eligible expenses
You can claim the Ontario Staycation Tax Credit for accommodation expenses for a leisure stay of less than a month in Ontario, at a short-term accommodation or camping accommodation, such as a:

hotel
motel
resort
lodge
bed-and-breakfast establishment
cottage
campground
vacation rental property
The tax credit only applies to leisure stays between January 1, 2022, and December 31, 2022, regardless of the timing of payment for the stays.

The accommodation expenses must have been paid by you, your spouse or common-law partner, or your eligible child, as set out on a detailed receipt provided by a supplier registered for the Goods and Services Tax (GST)/Harmonized Sales Tax (HST).

As long as all other conditions are met, you can claim any of the following expenses:

accommodation for a single trip or multiple trips, up to the maximum expense limit of $1,000 as an individual or $2,000 as a family
accommodations booked either directly with the accommodation provider or through an online accommodation platform
the portion of the expense that is necessary to have access to the accommodation
the accommodation portion of a tour package expense
You must keep your detailed receipts for any eligible expenses you claim for the credit. Those receipts must include:

the location of the accommodation
the amount that can reasonably be considered to be for the accommodation portion of a stay
the amount of any GST/HST paid
the date of the stay
the name of the payor
Ineligible expenses
Short-term accommodation would generally not include a timeshare agreement, or a stay on a boat, train or other vehicle that can be self-propelled.

The tax credit cannot be claimed for:

travel expenses that are not for short-term accommodation or camping accommodation, such as expenses for car rentals, fuel, flights, groceries, parking, or prices of admission into local attractions and places of interest
accommodation expenses reimbursed to you, your spouse or common-law partner, or your eligible child, by any person, including by a friend or an employer
expenses that are incurred for school or educational purposes, or for a work, employment or business purpose, or that can be claimed for a medical expense tax credit
How to claim the credit
You can claim the credit on your personal Income Tax and Benefit Return for 2022.

The Ontario Staycation Tax Credit is a refundable personal income tax credit. This means that if you are eligible, you can get this tax credit regardless of whether you owe income tax for 2022.

12/06/2022

Canada Dental Benefit

Seeing a dental care professional is important not only for oral health, but for overall health. In Canada, a third of people do not have dental insurance, leaving many unable to visit an oral health professional to get the dental care they need.

On December 1, the Government of Canada announced that applications for the new interim Canada Dental Benefit are now open. The Canada Dental Benefit will give eligible families up-front, direct payments of up to $650 a year per eligible child under 12 for two years (up to $1,300) to support the costs of dental care services.

In order to ensure potential applicants are aware of the new benefit, the CRA will be issuing over 800,000 emails to prospective recipients who have signed up for e-mail notifications providing an overview of the benefit and advising on how they can apply. Unlike most e-mails from the CRA, clients will not be required to access MyAccount to read an additional message.

About the Canada Dental Benefit

Depending on the adjusted family net income, a tax-free payment of $260, $390, or $650 is available for each eligible child. This interim dental benefit is only available for 2 periods. Recipients can get a maximum of 2 payments for each eligible child. Benefit payments are administered by the Canada Revenue Agency.

The first benefit period is for children under 12 years old as of December 1, 2022 who receive dental care between October 1, 2022 and June 30, 2023.

In order to access the benefit, applicants must meet all of the following criteria:

They have a child or children under 12 as of December 1, 2022 and are currently receiving the Canada Child Benefit (CCB) for that child;
They have an adjusted family net income of less than $90,000;
Their child does not have access to private dental insurance;
They have filed their 2021 tax return; and
They have had or will have out of pocket expenses for their child’s dental care services incurred between October 1, 2022 and June 30, 2023, for which the costs are not fully covered or reimbursed by another dental program provided by any level of government.
More information on the Canada Dental Benefit can be found here: Canada Dental Benefit - Canada.ca

11/20/2022

TAX CHANGES

1. Repaying COVID-19 benefits

If you received COVID-19 benefits from the CRA in 2022, such as the Canada Recovery Benefit (CRB), Canada Sickness Recovery Benefit (CSRB) or Canada Recovery Caregiving Benefit (CRCB) you will receive a T4A slip with the relevant information you need for your tax return.
If you received the CRB and your net income after certain adjustments is more than $38,000, then you may have to repay all or part of the benefits you received in 2022.
If in 2022 you have already repaid all or part of COVID-19 benefits received, you can choose which year to claim the tax deduction for the repayment on, either the year you received the benefit, or the year you repaid it.
Plus, any one-time provincial payments to help you through COVID-19 will not be taxable, and you don’t need to report them as income on your 2022 tax return.

2. You can claim up to $500 for work-from-home expenses

Making a return from last year, you can once again claim the work-from-home tax credit. If you’ve been keeping track of your expenses, you can go ahead and claim your calculated total. Otherwise, you can use the flat rate method of $2 for each day worked from home during the pandemic.

3. The Basic Personal Amount (BPA) has been increased

As part of their policy to continue increasing it over time until it reaches $15,000 in 2023, the government increased the Basic Personal Amount for the 2022 tax year to $14,398. This means that every Canadian will get a slight boost to their return this year, and it’s likely you can expect another increase next year as well.

4. Tax brackets have shifted to account for inflation

The government has adjusted tax brackets for 2022 to maintain buying power for Canadians as prices of goods continue to slowly increase.
The new federal tax brackets for 2022 are as follows:

$0 to $50,197 of income (15%)

More than $50,197 to $100,392 (20.5%)

More than $100,392 to $155,625 (26%)

More than $155,625 to $221,708 (29%)

$221,708.01 and higher (33%)

The adjustment upwards means that Canadians on the edge of a tax bracket might find themselves shifted into a lower bracket this year and pay less taxes because of it.

5. The TFSA limit remains unchanged

The TFSA contribution limit will remain at $6,000 for the year. This means that if you’ve had an account since 2009, were 18 years of age and have been a resident of Canada throughout that period, the cumulative total you can have in your TFSA is now $81,500.

6. New OAS limit amounts

The OAS is designed to provide retirees with a source of income to support their retirement. However, if your income is over certain limit amounts, you might find your OAS amount reduced, and even canceled entirely.
For the 2022 tax year, if your taxable income was over $81,761, you would need to repay some of your OAS. Similarly, if your taxable income was over $134,626, you would not have received any OAS payments. Thanks to the CRA’s new Affordability Plan, seniors aged 75 and over received an automatic 10% increase of their Old Age Security pension, as of July 2022.

7. Canada Pension Plan maximum contributions have been increased

The Canada Pension Plan (CPP) and Québec Pension Plan (QPP) have been increased by 2.7%, the maximum pensionable earnings are $64,900, with a basic exemption of $3,500 for 2022. For CPP, the Employee and employer maximum contribution is $3,039.30; for QPP it is $3,315.60.
Québecers also have the option to increase their Québec Pension Plan premiums, by making extra contributions, to the enhanced plan. The enhancement of the QPP will provide future retirees with an increase in their pension premiums from 25% to 33.33%.
Note that any self-employed individuals must account for both the employer and the employee sides of the contribution. For 2022, their maximum contribution amount for the CPP is $6,078.60 and for the QPP it is $6,999.60.

8. RRSP dollar limit is increased

The RRSP annual dollar limit for tax year 2022 is $29,210. Remember that your RRSP contribution limit is capped at 18% of your earned income in the previous year. This means the dollar limit is the maximum amount you can contribute regardless of your income.

9. Changes to tax credits you need to know

Some credits have been added, changed, reinstated, or expanded for the 2021 tax year.
Below are some of the Federal changes to tax credits:

Air Quality Improvement Tax Credit: Eligible businesses including sole proprietorships, can claim 25% of their qualifying ventilation upgrades to a maximum of $10,000, creating a $2,500 tax credit.

Automobile income tax deduction limits: The changes include Increase in Capital Cost Allowance (CCA) ceiling limits for zero emission and passenger vehicles, deductible monthly leasing costs increased by $100, and the per kilometer rate paid by employers to employees who use their personal vehicle for work has increased by 2 cents per km from last year.

Below are some of the changes to tax credits by province:

Nova Scotia

The Children’s Sports and Arts Tax Credit: is a new $500 credit to help cover the costs of registering in sports and the arts for kids under 19 years old in 2022.

The Rebate for Fertility Treatments, Surrogacy-related Medical Expenses: is a refundable tax credit equal to 40 % of the cost of fertility treatments and surrogacy-related medical expenses. Treatment must take place in Nova Scotia by a qualified medical practitioner or clinic.

Ontario

The Ontario Staycation Credit: is a one time tax credit for Ontarians who’ll be able to claim 20% of their stay in an Ontario hotel, cottage or campground, during 2022 up to $1,000 individually or $2,000 as a family.

The Ontario Seniors Care at Home Tax Credit: is a refundable personal income tax credit to help seniors with eligible medical expenses, including expenses that support aging at home. The credit is equal to 25% of your eligible medical expenses up to $6,000, for a maximum credit of $1,500.

The Seniors’ Home Safety Tax Credit: is a new credit that supports seniors in making their homes safer and more accessible, with a credit of 25% up to a maximum of $10,000 in eligible expenses. The maximum credit is equal to $2,500 per year.

11/20/2022

The tax season is here, and these are the changes you should factor into your return this year
1. Repaying COVID-19 benefits
2. You can claim up to $500 for work-from-home expenses
3. The Basic Personal Amount (BPA) has been increased
4. Tax brackets have shifted to account for inflation
5. The TFSA limit remains unchanged
6. New OAS limit amounts
7. Canada Pension Plan maximum contributions have been increased
8. RRSP dollar limit is increased
9. Changes to tax credits you need to know

11/12/2022

Catch Up Payments | ontario.ca

www.ontario.ca

About Catch Up Payments

You can get financial support to help with the costs of your child’s tutoring, supplies or equipment during the 2022–23 school year. Eligible applicants will receive a one-time payment of:

$200 for each student between kindergarten and Grade 12, up to age 18$250 for each student with special education needs between kindergarten and Grade 12, up to age 21

The deadline to apply is March 31, 2023 at 11:59 p.m.EST.

EligibilityWho may apply

You are eligible to apply if you live in Ontario and are a:

parent or guardian to a student from kindergarten to Grade 12secondary school student who is 18 years of ageparent or guardian to a student from kindergarten up to age 21 with special education needsEligible students

Students are eligible if they are:

enrolled in kindergarten to Grade 12 and are up to 18 years oldenrolled in kindergarten to Grade 12 are up to 21 years old and have special education needs

And

go to a publicly funded schoolgo to a private schoolgo to a First Nation operated or federally operated schoolare homeschooled

Both in person and remote learning students are eligible.

Students of Adult and Continuing Education programs for individuals over 18 years of age are not eligible.

Definition of “special education needs”

For the purposes of this payment program, a student with special education needs is any student receiving special education programs or services by their school board, or any student with a special education need.

Apply

You can access the application form through a secure website.

Step 1: Create your profile

By creating a profile, you can check the status of your application. You can also update your information prior to submission and check the status of your application throughout the process.

Only one parent/guardian per student is eligible to apply and receive payment.

Get instructions if you need help setting up your profile.

Step 2: Provide information for each student for whom you are requesting Catch Up Payments

You must submit a separate application for each student. Only one application per student is accepted. You will need the following information for each student:

the name of their school and school board (if applicable)their date of birtha valid email addressdepending on the method of payment selected, your banking information (bank name, branch or transit number and account number)

All information that you provide about a student should match their school’s record (if they attend a publicly funded school).

Each eligible student will be assigned a unique application number.

If we receive more than one application for a student, we will only process the first application.

Step 3: Choose your method of payment

You will be asked to select your preferred method of payment. You can choose:

e-transferdirect depositchequeE-transfer

The quickest way to receive your payment is through e-transfer.

Direct deposit

Before beginning the application, make sure that you have your banking information ready if you are selecting direct deposit as your payment method. You will need your:

bank namebranch or transit numberaccount numberCheque

You can make a request in your application to receive payment by cheque if you:

cannot provide an email address to receive an e-transfercannot provide banking information for direct deposit

Choosing to receive payment by cheque means it will take us longer to send you your payment.

Step 4: Submit your application

You will need to complete an attestation form before you submit your application.

As soon as you successfully complete your application, you’ll get a confirmation number. Record and keep the confirmation number for each application you submit.

One parent or guardian can apply

Only 1 parent or guardian may apply for each student. The parent or guardian should have custody of the child. This could include a parent or guardian with shared custody. It is up to the child’s parents or guardians to determine who will apply. We are not involved in these decisions and will not accept duplicate applications.

After you apply

Within 1 to 5 business days, you’ll get an email confirming that your application was received. It will include your confirmation number. Check your junk mail folder if you do not receive the confirmation email.

It will take a few weeks for you to receive your payment. Some applications may take longer to verify and process.

If the information you provide is incomplete or inaccurate, your payment will be delayed or denied.

Get your payment

We will send payments by e-transfer, direct deposit or cheque based on what you chose when you applied.

One payment will be made per student to:

the parent or guardian who applied for their childsecondary students who are 18 years of age and applied on their own

Each application is verified and processed separately. This means if you applied for more than one child, you will receive separate payments.

Check the status of your application

When you create a profile, you will be able to:

check on the status of your applicationmake updates or changes to your information prior to submissioncorrect specific information in your submission if requested by the ministryContact us

For more information about Catch Up Payments, call us Monday to Friday, 8:30 a.m. to 7:00 p.m. Eastern time, excluding holidays.

Toll-free: 1-833-703-2331Toll-free TTY: 1-800-268-7095Toronto (GTA) TTY: 416-325-3408