Common Tax Deductions & Credits

Accelerated Investment Incentive Properties (AIIP)

Under the proposed Accelerated Investment Incentive measure, certain capital property that is subject to the general CCA rules (referred to as "eligible property") will be eligible for an enhanced first-year allowance. To qualify as accelerated investment incentive property, property must be acquired after November 20, 2018, and become available for use before 2028. In addition, certain properties are excluded.

The Accelerated Investment Incentive does not change the total amount that you can deduct over the life of a property. By claiming a larger CCA deduction in the first year, you will have smaller CCA deductions in future years.

Amateur Athlete Trusts (AAT)

Starting in 2014, contributions to an Amateur Athlete Trust will now qualify as earned income for the purposes of calculating the RRSP contribution limit of the trust’s beneficiary. These beneficiaries can now elect for such contributions made in 2011, 2012 and 2013 to also qualify for calculating 2014 RRSP contribution room.

Basic personal amount

On Dec. 9, 2019, the new government introduced legislation to implement changes to the Basic Personal Amount (BPA):

• The basic personal amount is now calculated based on income. This is a broad-based tax change that should put more money into employees’ pockets every payday and help reduce quarterly or annual instalment remittances for others.

• The amount for 2020 starts at 13,229 and starts reducing when net income exceeds $150,473. Taxpayers in the 33% bracket (income over $214,368 in 2020) will see no enhancement to the Basic Personal Amount.

• The plan is to gradually increase the BPA to $15,000 by 2023 for taxpayers with taxable income below the 29% tax bracket.

• Note that the basic personal amount is factored in the calculation of a number of other credits and amounts such as the spouse/common-law partner amount and the eligible dependant amount, and is used in other calculations such as determining whether a child is financially independent.

• The maximum basic personal amounts for the coming years are:

  • For the 2020 taxation year, $13,229, (the enhancement is $931).

  • For the 2021 taxation year, $13,808, (the enhancement is $579).

  • For the 2022 taxation year, $14,398, (the enhancement is $590).

  • For 2023 and subsequent taxation years, $15,000 (the enhancement is $602).

Canada Child Benefit

Payments under this new benefit began in July 2016. This program has replaced the Canada Child Tax Benefit (CTTB) as well as the Universal Child Care Benefit (UCCB). This benefit will not be indexed until July, 2020.

Canada Caregiver Credit

Beginning with tax year 2017, the Infirm Dependent Credit, Caregiver Credit, and Family Caregiver Credits have been consolidated into the new Canada Caregiver Credit (CCC). The rules for this new credit are complex, however, a couple of changes of interest are:

• Taxpayers can now claim this new credit for infirm dependents 18+ years of age that do not live with them.

• Taxpayers will NOT be able to claim non-infirm senior parents or grandparents.

Canada Pension Plan Enhancement

• Starting with 2019 tax year, the CPP benefit is being gradually “enhanced”. This means you will receive higher benefits in exchange for making higher contributions.

• These increased contributions will allow the enhanced CPP to replace 33.33% of your “average lifetime earnings” rather than the current 25%

• Every employee will have a “Deduction for CPP Enhanced Contributions on Employment Income” in 2019 on line 22215 and self-employed individuals on line 22200 and will add a great deal of complexity to the calculations for CPP

Canada Training Credit (CTC)

• This is a (notional) refundable tax credit that is available for eligible tuition and other fees paid for courses taken in 2020 and subsequent taxation years. The credit will be the lesser of the individual’s Canada training credit limit for the taxation year, and half of the eligible tuition and fees paid to an eligible educational institution in respect of the year

• This credit began to accumulate in 2019 tax year for use in 2020 tax year and future years

• Starting in 2019, an eligible individual is able to accumulate $250 in each year, up to a maximum of $5,000 in a lifetime

• In 2019 and subsequent tax years, an individual who is at least 25 years old and less than 65 years old at the end of the year can accumulate $250 towards the individual’s Canada training credit limit (for the next year), provided they satisfy all of the following conditions with respect to the year:

  • file a tax return for the year;

  • be resident in Canada throughout the year;

  • have a total of $10,000 or more of income from:

    • maternity and parental benefits, and

    • working income (income from an office or employment, business income, the taxable part of scholarship income and research grants, the tax-exempt part of earnings of status Indians and emergency service volunteers, and income under the Wage Earner Protection Program Act).

  • have individual net income for the year that does not exceed the top of the third tax bracket in that year ($147,667 in 2019)

• The Canada training credit limit for a year is equal to their Canada training credit limit for the previous year minus any Canada training credit claimed in the previous year plus the annual accumulation of $250 in the previous year. 

• The amount of the Canada training credit will be the lesser of:

  • half of the eligible tuition and fees paid in respect of the year, and

  • the individual’s Canada training credit limit for the taxation year.

• The Canada training credit claimed on your income tax and benefit return will reduce your tax owing. If the credit is more than your tax owing, you will get a refund for the difference.

• You can claim the Canada training credit for a taxation year if you satisfy all the following conditions:

  • you file an income tax and benefit return for the year;

  • your Canada training credit limit for the year is greater than zero;

  • you are resident in Canada throughout the year;

  • tuition or fees are paid to an eligible educational institution in respect of the year; and

  • the tuition and fees are otherwise eligible for the existing tuition tax credit.

• Note that individuals under the age of 26 or over the age of 65 at the end of a year have a Canada training credit limit of zero and thus cannot claim the Canada training credit for tuition and fees incurred in respect of that year.

• Eligible tuition and fees for the Canada training credit will be the same as under the existing rules for the tuition tax credit. In particular, eligible tuition and fees will include:

  • tuition fees

  • ancillary fees and charges (e.g., admission fees, exemption fees and charges for a certificate, diploma or degree); and

  • examination fees.

• You may be able to claim both the Canada training credit and the tuition tax credit in the same year. However, in calculating your tuition tax credit, your eligible tuition and fees paid for the year will be reduced by the Canada training credit you claim in that year.

• Your Canada training credit limit will be communicated to you each year on your Notice of Assessment (NOA) and will be available through the CRA’s My Account portal. Your 2020 NOA will indicate your Canada training credit limit for 2021 that may be used if you pay eligible tuition and fees for courses taken in 2021 and you wish to claim the Canada training credit on your 2021 income tax and benefit return in respect of those fees.

• You cannot transfer any unused Canada training credit limit to another individual. Any balance at the end of the year you turn 65 will expire. Therefore, no determination of your Canada training credit limit will be made for any year following the year you turn 65.

Canada Workers Benefit

The Canada Workers Benefit is a refundable tax credit that is available to taxpayers and their families who are working and earning a low income. This credit has been extended for the 2023 tax year to include a $15,239 secondary earner exemption, which will make the credit available to more Canadians.

CCA classes for zero-emission vehicles acquired after March 18, 2019

• CRA has introduced new Class 54 for vehicles that would otherwise be included in class 10 or 10.1 and Class 55 for vehicles which would otherwise be included in class 16

• Taxpayers will not qualify to claim under these classes if they took the dealer rebate of $5,000 for vehicles under $45,000

• These new classes can be depreciated to a maximum of $55,000 plus taxes, rather than the class 10 and 10.1 maximums of $30,000 plus taxes

• The rate for these classes is 100%, meaning that the entire cost (up to $55,000 plus tax) can be claimed in year 1

• The risk is that these classes WILL be subject to recapture

• The taxpayer can still opt to claim zero-emission vehicles under class 10 or 10.1 if desired, noting that the AIIP (Accelerated Investment Incentive) is still available

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.

Please refer to the 'First-Time Donor Super Credit' section below for additional information.

Charitable Donations – New Tier for High Income Taxpayers

Beginning in 2016, there are new tiers being applied to charitable donations for taxpayers who are subject to the new 33% tax bracket. For taxpayers whose federal tax rate is 33%, charitable donations will be calculated as:

• 15% on 1st $200

• 33% on the amount of donations (after the 1st $200) that is equal to the amount of income being taxed at 33%

• Remainder at 29%

• First time donors will receive 25% of $1,000 in charitable donations

Note that the first time donor super credit (available to all taxpayers) has expired starting with tax year 2017. Please refer to the 'First-Time Donor Super Credit' section below for additional information.

Child Care Expenses – Increased Limits

The maximum amount of child care expenses that can be deducted were increased in 2015:

                                                 Previous Amounts             New Amounts for 2015 and future

Per Child Under 7                                   $7,000                                   $8,000

Per Child Aged 7-16                                $4,000                                   $5,000

Infirm dependents over 16                       $4,000                                   $5,000

Per severely disabled child                      $10,000                                 $11,000

Children’s Arts Tax Credit

This credit has been eliminated beginning in the 2017 tax year and for future years.

Starting with the 2011 tax year, this is a 15% federal tax credit on up to $500 of eligible expenses per child paid in a year, yielding a maximum credit of up to $75/child. 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.

The allowable amount for the Children’s Arts Tax Credit has been reduced to $250 per child for the 2016 tax year. Additional amounts are available for children who qualify for the disability tax credit. Any amounts paid in 2016 for eligible activities that occur in 2017 will be eligible. Beginning with tax year 2017, this tax credit has been eliminated.

Children’s Fitness Tax Credit

This credit has been eliminated beginning in the 2017 tax year and for future years.

Beginning in 2015, this credit has become refundable, meaning that even if a taxpayer has no federal tax to pay for the year, the credit will be paid to the taxpayer. This is a 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 $1,000/child per tax year, yielding a maximum credit of up to $150/child. Additional credit is available for children with disabilities.

Federal - The federal amount for the Child Fitness Tax Credit has been increased in 2014 to a maximum of 15% of $1,000 per child (increased from 15% of $500 per child in 2013). For 2014, this tax credit remains non-refundable (meaning that it can reduce tax to zero, but any remaining credit is lost), however, beginning in 2015, this credit has become refundable (meaning that even if a taxpayer has no federal tax to pay for the year, the credit will be paid to the taxpayer). There is also an additional credit for disabled children who are 18 years of age or younger and eligible for the disability tax credit. This additional credit applies if the taxpayer incurs at least $100 of eligible expenses, in which case, an additional $75 federal tax credit is available. This additional tax credit for disabled dependents will also change from non-refundable to refundable for the 2015 tax year.

Provincial – The maximum tax credit for combined Fitness and Arts credits for Ontario in 2014 is 10% of $541 per child.

While this credit remains refundable for 2016, the allowable amount has been reduced to $500 per child. Additional amounts are available for children who qualify for the disability tax credit. Any amounts paid in 2016 for eligible activities that occur in 2017 will be eligible. Beginning with tax year 2017, this tax credit has been eliminated.

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 $8,000/child under 7 years of age, $5,000/child aged 7-16, and $11,000 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.

Climate Action Incentive

This new refundable tax credit is being offered to residents of Ontario, Manitoba, Saskatchewan and New Brunswick. The credit consists of a basic amount and a supplement for residents who live in qualified small and rural communities.

Information about the Ontario Climate Action Incentive amounts:

• To be eligible, the taxpayer must be a resident of Ontario and be 18 years of age or older. Taxpayers cannot claim this credit if they were a non-resident of Canada at any point in the tax year, were confined to a prison or similar institution for a period of at least 90 days in the tax year, were exempt from income tax at any time in Canada in the tax year (under certain circumstances), or if the taxpayer was a person in respect for whom a children’s special allowance (CSA) was payable at any time in the tax year.

• The amounts payable for the CIA for the 2018 tax year are as follows:

  • Base Amount: $154.00

  • Amount for an eligible spouse or common-law partner: $77.00

  • Amount for a single parent’s qualified dependent: $77.00

  • Amount for other qualified dependents: $38.00 each

  • Supplement for residents of small and rural communities: Additional 10%

• The amounts payable for the CIA for the 2019 tax year are as follows:

  • Base Amount: $224.00

  • Amount for an eligible spouse or common-law partner: $112.00

  • Amount for a single parent’s qualified dependent: $112.00

  • Amount for other qualified dependents: $56.00 each

  • Supplement for residents of small and rural communities: Additional 10%

• The amounts payable for the CIA for the 2020 tax year are as follows:

  • Base Amount: $300.00

  • Amount for an eligible spouse or common-law partner: $150.00

  • Amount for a single parent’s qualified dependent: $150.00

  • Amount for other qualified dependents: $75.00 each

  • Supplement for residents of small and rural communities: Additional 10%

• The amounts payable for the CIA for the 2021 tax year are expected to be:

  • Base Amount: $360.00

  • Amount for an eligible spouse or common-law partner: $180.00

  • Amount for a single parent’s qualified dependent: $180.00

  • Amount for other qualified dependents: $89.00 each

  • Supplement for residents of small and rural communities: Additional 10%

• The amounts payable for the CIA for the 2022 tax year are expected to be:

  • Base Amount: $488.00

  • Amount for an eligible spouse or common-law partner: $244.00

  • Amount for a single parent’s qualified dependent: $244.00

  • Amount for other qualified dependents: $122.00 each

  • Supplement for residents of small and rural communities: Additional 10%

• The amounts payable for the CIA for the 2023 tax year are expected to be:

  • Base Amount: $560.00

  • Amount for an eligible spouse or common-law partner: $280.00

  • Amount for a single parent’s qualified dependent: $280.00

  • Amount for other qualified dependents: $140.00 each

  • Supplement for residents of small and rural communities: Additional 20%

Digital News Subscriptions

Taxpayers can claim up to $500 for amounts paid in 2020 for qualifying subscription expenses. The amounts must have been paid to a qualified Canadian journalism organization (QCJO) that does not hold a licence to broadcast, for a digital news subscription to content that is primarily original news.

Education and Textbook Credits

Beginning in 2017, Education and Textbook credits have been eliminated; however, Federal Tuition credits will continue to be eligible Federal tax credits. Note that any carryforward Education and Textbook amounts from tax year 2016 or earlier will be honoured and can still be claimed in 2017 and future years.

Tuition and Education Amounts for the Province of Ontario can be claimed only for studies before September 5, 2017 only.

Eligible Educator School Supply Tax Credit

Starting in 2016, this tax credit will allow employee taxpayers who are eligible educators to claim a 15% refundable tax credit based on an amount of up to $1,000 of purchases of eligible teaching supplies by the employee in a taxation year. To be eligible, the supplies must be:

• purchased for teaching or facilitating learning, and directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the teacher or educator’s duties of employment;

• not reimbursable and not subject to an allowance or other form of assistance

• not deducted or used in calculating a deduction from any person’s income for any taxation year.

• consumable, with the exceptions of games and puzzles, books, containers such as plastic boxes or bankers boxes, and educational software, which will all be eligible

Other non-consumable items such as tablets, computers, rugs for children to sit on are NOT eligible.

To claim this credit, the taxpayer must be able to produce a signed certificate from a school official on request

This tax credit has been extended in the following ways for the 2021 tax year:

• Eligible educators can now claim 25% of up to $1,000 in eligible expenses (up from 15% in 2020)

• The rules with respect to the location of the educator have been broadened and are no longer limited to supplies that are used in the school only

• Some prescribed durable goods including electronic devices have been added to the list of eligible expenses, including:

• laptops, desktop and tablet computers (provided that none of these items are made available to the eligible educator by their employer for use outside of the classroom),

• printers,

• multimedia projectors,

• video streaming devices,

• speakers,

• electronic educational toys,

• wireless pointer devices,

• external data storage devices,

• webcams, microphones and headphones,

• calculators (including graphing calculators),

• digital timers,

• digital educational programs, and

• educational support software

Family Tax Cut (“Income Splitting”)

This tax credit was in effect until tax year 2015 and was discontinued beginning in tax year 2016.

The Family Tax Cut is a non-refundable tax credit of up to $2,000 for eligible couples with minor children. The credit was effective for the 2014 - 2016 tax years and was based on the net reduction of federal tax that would be realized if up to $50,000 of an individual's taxable income was transferred to the individual's eligible spouse or common-law partner. This would take advantage of a spouse's lower income tax bracket. Only one spouse may claim the Family Tax Cut; it cannot be shared. This tax credit does NOT change the actual net income or taxable income of either spouse and as such, it does not affect other federal or provincial benefits and tax credits.

First-Time Donor's Super Credit (FDSC)

This credit is eliminated for 2018 and future years.

Beginning in tax year 2013, the federal government offered a temporary non-refundable credit called the First-Time Donor's Super Credit to supplement the existing credit for charitable donations. An individual was considered a first-time donor if neither the individual nor the individual’s spouse or common-law partner had claimed the Charitable Donations Tax Credit (CDTC) in any of the five preceding tax years.  This new credit effectively added 25% to the rates used in the calculation of the CDTC for up to $1,000 of monetary donations. Only donations of money that are made after March 20, 2013 qualified for the FDSC.

GST/HST Credit Administration

Starting in 2014, individuals no longer need to apply for the GST/HST credit; CRA will now automatically determine eligibility for every individual who files a return. A notice of determination will be sent to those who are eligible for the credit.

Healthy Homes Renovation Tax Credit

Beginning in 2017, the Province of Ontario has discontinued the Healthy Homes Renovation Tax Credit. The Federal Home Accessibility Tax Credit continues to be available.

Home Accessibility Tax Credit

Beginning in tax year 2016, the Federal government has offered a non-refundable tax credit that benefits the taxpayer by 15% of up to $10,000 spent on qualifying home renovations. Beginning for tax year 2022, this has been increased to 15% of up to $20,000 spent on qualifying expenses. To qualify, the taxpayer must be 65 years or older or claiming the DTC or have a family member meeting these requirements living with them. This new federal credit is non-refundable. Taxpayers may have an eligible expense that also qualifies as a medical expense.  If so, the expense can be claimed as a medical expense and a home accessibility expense.

Home Buyer’s Amount (First Time Home Buyer’s Tax Credit)

This non-refundable credit, available to first time homeowners, has been doubled for the 2022 tax year to 15% of $10,000 (was previously $5,000).

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 before March 19, 2019 and $35,000 per individual after March 19, 2019. Both spouses may withdraw for a total maximum of $50,000/$70,000 (depending on the withdrawal date). 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).

Home Office Expenses for Employees

Beginning with tax year 2020, employees who were required to perform some or all of their employment-related duties from their home may be eligible to claim these expenses as a deduction on their personal income tax return. There are a number of methods available for the 2020 tax year to do so:

1)     New Temporary Flat Rate Method (Available for tax years 2020 – 2022 only; discontinued for tax year 2023)

• The new temporary flat rate method simplifies the taxpayer’s claim for home office expenses.

• Taxpayers are eligible to use this new method if they worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020, 2021 or 2022 due to the COVID-19 pandemic.

• To use this method to claim the home office expenses you paid, the taxpayer must meet all of the following conditions:

  • The taxpayer worked from home in 2020, 2021 or 2022 due to the COVID-19 pandemic

  • The taxpayer worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020, 2021 or 2022

  • The taxpayer is only claiming home office expenses and is not claiming any other employment expenses

  • The taxpayer was not reimbursed for all of their home office expenses by their employer

• Taxpayers can claim $2 for each day worked from home during that period plus any additional days worked at home in 2020, 2021 or 2022 due to the COVID-19 pandemic.

• Days that can be counted:

  • days that the taxpayer worked full-time hours from home

  • days that the taxpayer worked part-time hours from home

• Days that cannot be counted:

  • days off

  • vacation days

  • sick leave days

  • other leave or absence

• The maximum that a taxpayer can claim using the new temporary flat rate method is $400 (200 working days) per individual in 2020 and $500 (250 working days) per individual in 2021 and 2022.

• No employer documentation is required; the taxpayer’s employer does not need to complete and sign Form T2200 or T2200S

2)     Simplified Declaration of Conditions of Employment for Working at Home due to COVID-19  (T2200S) (Available for tax years 2020 – 2022 only; discontinued for tax year 2023)

• Employers can use this form for employees who worked from their home in 2020, 2021 or 2022 due to Covid-19 and are only claiming home office expenses

• Employers must complete and sign the T2200S form and provide a copy to the employee if the employee chooses to use the detailed method to calculate their home office expenses. If the employee is required to pay for expenses other than home office expenses, the employer should complete form T2200 instead

 3)     Declaration of Conditions of Employment (T2200)

• Employers must complete and sign the T2200 form and provide a copy to the employee if the employee chooses to deducted expenses from their income. These expenses can include work-space-in-the-home expenses, vehicle expenses, and a variety of other expenses.

 *Note that if the employee is using a shared space in the home, the expenses should be further prorated by the number of hours worked per week / 168 total hours in a week

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 Childcare Access and Relief from Expenses (CARE)

This tax credit is available to eligible families. Taxpayers can claim up to 75% of their eligible child care expenses, including services provided by child care centres, homes and camps. Families can receive up to:

• $6,000 per child under the age of seven (plus a top‑up of up to $1,200 for 2021)

• $3,750 per child between the ages of seven and 16 (plus a top‑up of up to $750 for 2021)

• $8,250 per child with a severe disability (plus a top‑up of up to $1,650 for 2021)

The Ontario Child Care Tax Credit is calculated as a percentage of the Child Care Expense Deduction. The Child Care Expense Deduction provides provincial and federal income tax relief toward eligible child care expenses.

As announced in the 2021 Ontario Budget, the government will provide an automatic top‑up of 20 per cent of the credit entitlement for the 2021 taxation year only. This does not extend to the 2022 tax year.

Ontario Children’s Activity Tax Credit

The Children’s Activity Tax Credit ended on December 31, 2016. 

The Ontario Children’s Activity Tax Credit was 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 was applicable to activities that are also eligible for the federal Children’s Fitness tax credit, but also included non-fitness extra-curricular activities. Parents could claim up to $541 per child (under 16 years of age). Additional amounts are available for children with disabilities.

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 Community Food Program Donation Tax Credit

Starting in 2014, a new non-refundable tax credit introduced by the Ontario government allows an individual to claim 25% of the fair market value of agricultural products donated to eligible food programs in Ontario, including food banks. This credit can be claimed in addition to the charitable donation tax credit.

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 starting in 2011.

Ontario Healthy Homes Renovation Tax Credit

Starting with the 2017 taxation year, the Healthy Homes Renovation Tax Credit is no longer available.

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. For other years, eligible expenses paid for in the calendar year will apply. 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 Jobs Training Tax Credit

(Available for tax years 2021 and 2022 only; discontinued for tax year 2023)

This is a temporary refundable tax credit that provides up to $2,000 per year in tax relief for 50% of a taxpayer’s eligible training expenses for 2021 or 2022. This credit has the same eligibility as the Canada Training Credit, available on the Federal tax return. To claim the credit for 2021 or 2022, the taxpayer must:

• have a positive Canada Training Credit limit for that year (found on the latest Notice of Assessment issued by Canada Revenue Agency)

• be an Ontario resident on December 31 of that year

• be aged 26 to 65 years old at the end of that year, and

• meet the other requirements set out in the federal Income Tax Act for at least one of 2019, 2020 or 2021.

Expenses eligible for the Ontario Jobs Training Tax Credit are the same as those that can be claimed for the Canada Training Credit that is available on the federal tax return. These include:

• tuition and other fees paid to an eligible educational institution in Canada for courses taken in 2021 or 2022 (including occupational skills courses and postsecondary education courses)

• fees paid to certain bodies in respect of an occupational, trade or professional examination taken in 2021 or 2022

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.

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.

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.

Ontario Sales Tax Transition Benefit

The Ontario Sales Tax Transition Benefit was introduced for the 2009 tax year only 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.

Ontario Seniors’ Home Safety Tax Credit

(Available for tax years 2021 and 2022 only; discontinued for tax year 2023)

The Seniors’ Home Safety Tax Credit is a temporary, refundable personal income tax credit that can help taxpayers make their homes safer and more accessible.

The credit is available for the 2021 and 2022 tax years and is worth 25% of up to $10,000 in eligible expenses per year for a senior’s principal residence in Ontario.

Taxpayers are eligible to claim this credit if they:

• are 65 or older by the end of the year, or

• live with a senior relative, or

• will live with a senior relative within 24 months after the end of the year.

Eligible expenses must be paid or payable in 2021 and 2022 and must improve safety and accessibility or help a senior be more functional or mobile at home. Some examples of eligible expenses include:

• grab bars and related reinforcements around the toilet, tub and shower

• wheelchair ramps, stair/wheelchair lifts and elevators

• certain renovations to permit first floor occupancy or a secondary suite for a senior

• handrails in corridors

• walk-in bathtubs

• wheel-in showers

• comfort height toilets

• widening passage doors

• lowering existing counters/cupboards

• installing adjustable counters/cupboards

• light switches and electrical outlets placed in accessible locations

• door locks that are easy to operate

• lever handles on doors and taps, instead of knobs

• pull-out shelves under counters to enable work from a seated position

• non-slip flooring

• a hand-held shower on an adjustable rod or high-low mounting brackets

• additional light fixtures throughout the home and exterior entrances

• swing clear hinges on doors to widen doorways

• creation of knee space under the basin to enable use from a seated position (and insulation of any hot-water pipes)

• relocation of tap to front or side for easier access

• hands-free taps

• motion-activated lighting

• touch-and-release drawers and cupboards

• automatic garage door openers

Examples of expenses that are not eligible for the credit include:

• routine repairs, maintenance or service (for example, plumbing or electrical repairs)

• esthetic improvements (for example, painting and landscaping)

• appliances, furniture or devices (for example, lift chairs and medical alert devices)

• services (for example, housekeeping, attendant care, or home security)

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 of the tax year for which you are filing

• Be a resident of Ontario on December 31 of the tax year for which you are filing

• Have owned and occupied a principal residence on December 31 of the tax year for which you are filing (or owned by spouse/common-law partner) for which the taxpayer or spouse/common-law partner paid Ontario property taxes in the tax year for which you are filing

• Not have been confined to a prison or similar institution on December 31 of the tax year for which you are filing

• Meet the income requirements to receive the grant

Ontario Seniors’ Public Transit Tax Credit

This is a refundable credit available to seniors (65 years of age or older) who lived in Ontario by the end of the year and have incurred eligible public transit expenses incurred on or after July 1, 2017. Taxpayers can claim up to $3,000 in expenses per year ($1,500 for 2017, as only half of the year is applicable), and receive up to $450 each year ($225 in 2017).

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.

Ontario Trillium Benefit (OTB) Payment Schedule

New rules were implemented for the 2013 and subsequent tax years for the payment schedule of the Ontario Trillium Benefit. In general, if your OTB entitlement for the year is:

• $2 or less, you will not receive a payment (in accordance with the general CRA rule of not charging or refunding amounts of less than $2).

• Between $2 and $10, it will be increased to $10 and paid out as a single payment.

• Between $10 and $360, and if you file your tax return by April 30th, you will receive a single payment on July 10th. If you file your return late, it will be paid in your first payment month.

• Over $360 ($30/month) and if you file your return by April 30th, you will receive monthly payments (July - June) unless you opt for one lump sum which would be paid out in the final month only (June of the subsequent year).

PPE Expenses

• PPE expenses can be claimed as an expense against income by employees with a signed T2200 or by self-employed individuals.

• PPE expenses can only be claimed as a medical expense if they are for a device or piece of equipment purchased exclusively for severe chronic respiratory illness such as a specialized air filter.

Pre-Authorized Debit Agreement

Beginning in tax year 2016,, taxpayers have the option to set up a one- time payment for individual income tax amount owing on their T1 tax return. The taxpayer would need to complete the required portion of the T183 form and the information must be submitted when the return is eFiled.

Principal Residence Disposition Reporting Requirements

Beginning in 2016, Canada Revenue Agency is requiring taxpayers to report the sale of all properties, including those that are considered to be their primary residence and therefore eligible for a full exemption from capital gains or losses. The taxpayer must report:

a)     Description of the property (address)

b)    Date of acquisition

c)     Proceeds of disposition

The penalty for late reporting is $100/month to a max of $8,000 and is payable even if no tax was payable on the disposition

Beginning in 2017, in all cases where a disposition of a principal residence has been realized, form T2091 or T1255 must be completed.

Public Transit Tax Credit

The Federal Public Transit Tax Credit has been eliminated for amounts paid for eligible transit passes after June, 2017.

This was 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.

The Province of Ontario has introduced a credit for certain amounts paid by seniors beginning July 1, 2017 (See the ‘Ontario Seniors’ Public Transit Tax Credit’ section above for more information).

Retirement Income Security Benefits (RISB) for Armed Forces

Beginning in 2016, these pensions will now be eligible for pension splitting.

RRIF Withdrawal Rates – Minimum amounts reduced

RRIF minimum withdrawal rates were reduced to 75% of the minimum that would otherwise apply for 2020 as part of the Covid-19 relief program offered by the government.

Safety Deposit Box Deduction (Removed)

Individual taxpayers will no longer be allowed to claim a deduction for safety deposit boxes for the 2014 and subsequent taxation years. Businesses are also not eligible to claim fees for a safety deposit box as an eligible business expense.

Search and Rescue Volunteers’ Tax Credit (SRVTC)

Starting in 2014, a new non-refundable tax credit is available for qualifying volunteers who perform at least 200 hours of eligible search and rescue services in the year. This $3,000 credit is similar to the existing Volunteer Firefighter Tax Credit (VFTC), and in fact, the qualifying volunteer hours can be combined for both types of volunteer activity, however, only one of the tax credits can be claimed.

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). The lifetime contribution limit for 2024 is $95,000.

Tradesperson’s Tools Expenses

Taxpayers may deduct up to $500 from their net income for eligible tools purchased to earn employment income as a tradesperson so long as the total expense amount exceeds the annual threshold ($1,245 for 2020). This cost includes and GST, PST, or HST paid.

Universal Child Care Benefit (UCCB)

Beginning in July, 2016, the Universal Child Care Benefit (UCCB) was replaced by the Canada Child Benefit.

The Universal Child Care Benefit was available to families with children under the age of 6 years and was 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.

The UCCB was increased from $100/month to $160/month for children up to age 6, and expanded to pay out $60/month for children aged 6-17 starting in 2015. Although the increases took effect in January, 2015, the amounts were not being paid until July.  As such, families received up to $420 per child in July 2015 for the months of January to July 2015, and began receiving the additional $60 on a monthly basis beginning in August, 2015. 

Universal Child Care Benefit for Single Parents

Beginning in July, 2016, the Universal Child Care Benefit (UCCB) was replaced by the Canada Child Benefit.

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.