Ontario Staycation Tax Credit
Ontario residents can claim 20% of their eligible 2022 accommodation expenses, for example, if you stay at a hotel or cottage. You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse or eligible children, to get back up to $200 as an individual or $400 as a family.
You can claim the Ontario Staycation Tax Credit for accommodation expenses for a leisure stay of less than a month in Ontario for short-term 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.
First-time home buyer’s tax credit increased to $1,500
Before 2022, if you were a first-time home buyer, you could claim a non-refundable tax credit of up to $750, which is calculated by multiplying $5,000 by the lowest personal income tax rate (15% in 2022).
For 2022 and subsequent taxation years, the CRA has increased the amount used to calculate this credit to $10,000, which would provide a tax credit of up to $1,500 if you are qualified as a first-time home buyer.
Home accessibility tax credit
According to the Canada Revenue Agency, “the annual expense limit of the home accessibility tax credit has increase to from $10,000 to $20,000.”
The Home Accessibility Tax Credit, which is a non-refundable tax credit, is for qualifying expenses for a qualifying renovation of an eligible dwelling of a qualifying individual. The HATC can be claimed by a qualifying or eligible individual.
The HATC applies to the total qualifying expenses, up to a maximum of $20,000 per year for 2022. The credit is at the lowest personal tax rate of 15%, so the maximum tax reduction per year is $3,000 ($20,000 x 15%).
A qualifying individual is an individual:
- who is 65 years or older before the end of the taxation year; or
- who is eligible to claim the disability tax credit at any time in the taxation year.
Work from home expenses
Similar as 2020 and 2021, you can claim $2 for each day that you worked at home due to COVID-19 up to a maximum of $500. For more details, you can see our other article https://solidtax.ca/knowledge-base/home-office-deduction/
Repaying COVID-19 benefits
If you received COVID-19 benefits in error or later found out you did not meet the eligibility criteria, you must repay them to the government.
For benefit repayments made in 2022, you may:
- claim the deduction on your 2022 tax return
- claim the deduction on your tax return for the year you received the benefit (2020 or 2021)
- split the deduction between your tax returns
You can claim the repayment as a tax deduction in a previous tax year by filing out form T1B, Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year.
Air quality improvement tax credit
If you were self-employed in 2022, you may be eligible to claim a refundable tax credit equal to 25% of your total ventilation expenses to improve ventilation or air quality in your place of business.
Your total ventilation expense for 2022 is the amount of qualifying expenditures made during the qualifying period starting September 1, 2021 and ending December 31, 2022, to a maximum of $10,000 for each qualifying location with a maximum of $50,000 for total ventilation expenses across all qualifying locations.
TFSA limit increases
The TFSA contribution limit for Canadians was $6,000 until 2022, but has increased to $6,500 for the 2023 year.
RRSP limit increase
The annual RRSP dollar limit for 2022 is $29,210.
The Canada Revenue Agency generally calculates your RRSP deduction limit as follows:
- your unused RRSP deduction room at the end of the preceding year
Plus
- The lesser of the two following items:
- 18% of your earned income in the previous year
- the annual RRSP limit (for 2022, the annual limit is $29,210)
- That exceeds one of the following items:
- your pension adjustment (PA)
- your prescribed amount for connected persons
Plus
- your pension adjustments reversal (PAR)
Minus
- your net past service pension adjustment (PSPA)
