Charitable Donations

Donations made to eligible charitable organizations may be eligible for non-refundable tax credits. Donations may be carried forward for up to 5 years. Taxpayers may choose to claim donations made in multiple years at the same time, so as to take advantage of the higher credit percentage for donations exceeding $200.

Children’s Arts Tax Credit (Federal)

Starting with the 2011 tax year, this is a 15% credit on up to $500 (maximum $75) of eligible expenses per child paid in a year. The credit is available for the enrolment of a child, which is under 16 years of age at the beginning of the year, in an eligible program of artistic, cultural, recreational or developmental activities. For a child who is under 18 at the beginning of the year and is eligible for the disability tax credit, an additional 15% credit of $500 ($75) is available when a minimum of $100 is paid in eligible expenses.

Children’s Fitness Tax Credit

This is a non-refundable federal tax credit of 15% of eligible child fitness expenses for children 16 years of age or under (18 years or under if the child is eligible for the disability amount). Taxpayers may claim a maximum of $500/child per tax year, yielding a maximum credit of up to $75/child. Additional credit is available for children with disabilities.

Child Care Expenses

Child care expenses can be claimed for child care expenses made to:

Caregivers providing child care services
Day nursery schools and daycare centres
Educational institutions for the part of the fees that relate to child care services
Day camps and day sports schools where the primary goal of the camp is to care for children
Boarding schools, overnight sports schools, or camps where lodging is involved Eligible expenses are deductible from income if they enable you or your spouse to be employed or in school. The expenses must generally be deducted from the spouse with lower income for that tax year. The maximum deductions are $7,000/child under 7 years of age, $4,000/child aged 7-16, and $10,000 for disabled children. Applicable deductibles are $175/week/child under 7 years of age, $100/week/child aged 7-16, and $250/week/child for disabled children. In addition, the deduction cannot be greater than 2/3 of the taxpayer’s earned income for the year.

First-Time Home Buyer’s Tax Credit

This is a non-refundable federal tax credit of 15% for eligible first-time home buyers; this is in addition to the Home Buyer’s Plan available to first-time home buyers. Taxpayers may claim a maximum of $5,000, yielding a maximum credit of $750. To be eligible, the home must be acquired (i.e. closed) after Jan 27, 2009 and the taxpayer cannot have lived in another home owned by themselves or their spouse or common-law partner in the year of acquisition or any of the four preceding years.

Home Buyer’s Plan

The Home Buyer’s Plan allows a taxpayer to borrow funds temporarily from an existing RRSP to buy a house as long as neither spouse/common-law partner has owned a home in the last 5 years. The maximum amount that can be withdrawn tax-free is $25,000 per individual. Both spouses may withdraw for a total maximum of $50,000. This RRSP loan must be repaid within 15 years, beginning on the 2nd year following the year of withdrawal (minimum payment of 1/15 of the original withdrawn amount per year) and unlike regular RRSP contributions, the amount of the payment is not deductible from income. The taxpayer may participate in the Home Buyer’s Plan in conjunction with the Lifelong Learning Plan (see below).

LLP (Lifelong Learning Plan)

The Lifelong Learning Plan allows a taxpayer to withdraw funds temporarily from an existing RRSP for full-time post-secondary education. The maximum amount that can be withdrawn tax-free is $20,000 total, and $10,000/year. The taxpayer’s spouse or common-law partner may also withdraw from the RRSP to double the maximums. This RRSP loan must be repaid within 10 years, with a minimum payment of 1/10 of the original withdrawn amount per year). LLP repayments are not deductible for tax purposes. Once repaid, the taxpayer can participate in the LLP again with the same maximums and requirements. The taxpayer may participate in the LLP program in conjunction with Home Buyer’s Plan (see above).

Moving Expenses

A taxpayer may deduct eligible moving expenses from the employment or self-employment income earned at his/her new place of employment if he/she has moved at least 40 kilometers closer to the new location. Similarly, a student may deduct moving expenses if he/she has moved 40 kilometers closer to the educational institution to study as a full-time student. Students can only deduct these expenses from scholarships, bursaries, fellowships and certain grants and prizes that are required to be part of their income. The new home must be the ordinary residence of the taxpayer and generally, the old and new home locations must both be from within Canada.

Ontario Children’s Activity Tax Credit

The Ontario Children’s Activity Tax Credit is a refundable tax credit introduced for the 2010 tax year to assist parents with the cost of enrolling their children in fitness and non-fitness related extra-curricular activities. This provincial tax credit is applicable to activities that are also eligible for the federal Children’s Fitness tax credit, but also includes non-fitness extra-curricular activities. Please visit the CRA website for a full list of eligible activities. Parents can claim up to $500 per child and receive up to $50 back per child (under 16 years of age) or up to $100 for a child with a disability (under 18).

Ontario Child Benefit (OCB)

The Ontario Child Benefit is a non-taxable monthly payment to help families with low incomes to provide for their children.

Ontario Energy and Property Tax Credit

Beginning with the 2010 tax year, the Ontario Sales Tax Credit and the Ontario Property Tax Credit have been separated on income tax returns. The province of Ontario has changed the calculation for the Property Tax Credit for credits being paid out in 2011. Legislated increases for this credit in 2010 increase the energy and property tax relief provided to low- to middle-income individuals and families by 70 percent compared to 2009. If rent or property tax amounts paid in the past have not been of benefit, it is worth re-checking again this year to see if you now qualify for this credit.

Ontario Healthy Homes Renovation Tax Credit

This is a refundable tax credit that is available starting in 2012 to seniors (age 65+) and family members who live with them. Qualifying taxpayers can claim up to $10,000 in eligible expenses for a 15% credit (i.e. a maximum of $1,500). For the 2012 tax year, taxpayers can claim eligible expenses related to work billed between October 1, 2011 and December 31, 2012. Only certain expenses related to making the home safer and more accessible qualify for this tax credit, such as non-slip flooring in a bathroom, installing a hand-held shower and installing wheelchair ramps. General home renovations including plumbing, electrical, roofing, furnace/air conditioning, and installing new windows are NOT eligible for this tax credit.

Ontario Property Tax Credit

The Ontario property tax credit provides relief to low- to middle-income homeowners and tenants. This tax credit can be claimed by taxpayers who were 16 years or older, resident of Ontario on December 31 of the tax year being filed and paid rent or property tax on their principal residence. You cannot claim this credit if you were under 19 years of age at the end of the tax year and lived with someone who received a Canada Child Tax Benefit payment for you in the year or claimed you as a wholly dependent person.

Effective July 2012 and for subsequent years, payments of the Ontario Sales Tax Credit, the Northern Ontario Energy Credit and the Ontario Energy and Property Tax Credit will be combined into a single benefit payment called the Ontario Trillium Benefit and delivered on a monthly basis.

Ontario Trillium Benefit

Effective July 2012, payments of the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit and Northern Ontario Energy Credit will be combined into a single benefit payment called the Ontario Trillium Benefit and delivered on a monthly basis.

Ontario Trillium Benefit Payments Remain Monthly

The Ontario Government has announced that payments related to the Ontario Trillium Benefit will remain on a monthly payment schedule, despite earlier promises to allow taxpayers to choose a lump sum option. For taxpayers receiving less than $360 ($30/month) for this benefit, however, the payout will be made as a lump sum and will be paid out in July. This lump sum threshold has been increased in 2012 from the 2011 threshold of $240.

Ontario Senior Homeowners’ Property Tax Grant

This grant is an annual amount provided to help offset property taxes for seniors with low to middle incomes who own their own home. In 2009, the maximum grant is $250. In 2010 and subsequent years, the maximum grant is $500. To be eligible, the taxpayer must

Be 64 years or older on December 31, 2009
Be a resident of Ontario on December 31, 2009
Have owned and occupied a principal residence on December 31, 2009 (or owned by spouse/common-law partner) for which the taxpayer or spouse/common-law partner paid Ontario property taxes in 2009
Not have been confined to a prison or similar institution on December 31, 2009
Meet the income requirements to receive the grant

Ontario Sales Tax Credit (OSTC)

The Ontario Sales Tax Credit program is designed to help low income individuals and families with the sales tax they pay. The amount received is NOT subject to tax and depends on the family size adjusted family net income. The payment amount is adjusted for inflation each year. The amount received by single taxpayers who have an adjusted family net income of over $20,360 will be reduced by four per cent of income over $20,360. Families (including single parents) with over $25,450 in adjusted family net income will see their.payments reduced by four per cent of their income over $25,450.

Ontario Sales Tax Transition Benefit

The Ontario Sales Tax Transition Benefit was introduced for 2009 to assist eligible Ontario individuals and families with the transition to the new sales tax system (HST). Taxpayers must be 18 years of age or older to be eligible for this benefit. Taxpayers will receive 3 payments: June 2010, December 2010, and June, 2011 at a maximum of $300 per individual and $1,000 for single parents and couples. The maximum payment is reduced by 5% of the adjusted family net income of $80,000 for single individuals and $160,000 for single parents and couples.

Public Transit Tax Credit

This is a non-refundable federal tax credit of 15% of eligible public transit expenses such as local buses, streetcars, subways, commuter trains/buses, or local ferries.

RRSP Contributions

For the 2009 tax year, contributions made in the remainder of 2009 as well as the 1st 60 days of 2010 can be claimed. Any contributions made to an RRSP account within the first 60 days of a given year should be reported on the previous year’s income tax return.

TFSA (Tax-Free Savings Account)

Contributing to a Tax-Free Savings Account allows taxpayers to set money aside, tax-free, throughout their lifetimes. Although contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible, the income generated in the TFSA is tax-free when withdrawn. To contribute to a TFSA, the taxpayer must be a resident of Canada, at least 18 years of age, and have a valid social insurance number (SIN).

Tradesperson’s Tools Expenses

Deduct up to $500 from your net income for eligible tools purchased to earn employment income as a tradesperson. This cost includes and GST, PST, or HST paid.

Universal Child Care Benefit (UCCB)

The Universal Child Care Benefit is available to families with children under the age of 6 years and is paid in instalments of $100 per month per child. Taxpayers receiving this benefit can expect to receive government form RC62 and are required to report this income when filing their tax return.

Universal Child Care Benefit for Single Parents

The Universal Child Care Benefit (UCCB) is available to families with children under the age of 6 years and is paid in installments of $100 per month per child. This benefit is included as income for the lower-income spouse in a two-parent family. Effective 2010, however, a single parent can designate these payments to be included in the income of the parent’s dependent child for whom the ‘equivalent to spouse’ credit is claimed. If there is no equivalent to spouse, this income can be designated to any of the children for whom the benefit is paid.

Volunteer Firefighters Tax Credit

Starting with the 2011 tax year, a non-refundable tax credit equal to 15% of $3,000 ($450) is available for volunteer firefighters who have completed at least 200 hours of volunteer firefighting services with one or more fire departments in the year.

Common Tax Deductions & Credits