It’s no secret that Ontario’s tax system has people seeking shelter. This is particularly true if you’ve been a long-time resident of the province and have lived there for a lifetime. The tax implications for yourself and your family can be very complex, as more time passes.
To help you navigate this tricky realm of taxation, we’ve put together a list of key 2022 Ontario tax highlights to help you understand which deductions and credits you may be able to claim on your own.
Senior Care at Home Tax Credit
The Senior Care at home tax credit is a non-refundable, non-transferable tax credit available to individuals who have resided in Ontario for at least 12 consecutive months and are age 65 or older.
The credit is equal to 25% of eligible expenses, up to a maximum of $1,000 per year. Qualified expenses include the cost of care received in a private residence or services provided by a registered nurse or personal support worker. The amount you can claim is based on your income tax return for the year you received the senior care services, but you must apply for this credit within six years after the end of that year’s tax return.
Regional Opportunities Investment Tax Credit
The Regional Opportunities Investment Tax Credit (ROITC) is a new federal-provincial program that offers a refundable tax credit to investors who make qualifying investments in Ontario’s regions.
The ROITC program was created in response to the growing importance of regional economic development as an engine for economic growth and job creation.
Investors can claim a refundable tax credit of up to $1,000 per year against their federal tax liability, up to $100,000 annually.
The Regional Opportunities Investment Tax Credit (ROITC) is a non-refundable tax credit available to certain businesses that invest in the development of a business opportunity in one of the designated regions.
The ROITC provides a 15% federal investment tax credit on eligible expenditures incurred after March 22, 2020, concerning a suitable business opportunity located in a regional economic development zone (REDZ).
Computer Animation and Special Effects Tax Credits
The Digital Media Tax Credit Program is intended to support the creation of high-quality, original, and innovative digital media content that will be available on platforms such as Netflix, Hulu, Apple TV, Google Play, and Amazon Prime Video.
In the 21st century, more and more people are working from home. This is not only due to a lack of jobs in the traditional workplaces but also to the increasing number of home-based businesses. The Ontario government has already approved some tax credits that these people can use.
The Work-From-Home Tax Credit allows individuals who work at home to claim an income tax deduction for their business expenses. This includes office rent, utilities, vehicles, and even personal computers.
It is important to note that this tax credit only applies to self-employed individuals who have earned their income through employment or business activities that require a physical presence in Ontario territory.
The credit can be claimed on your first $20,000 of eligible business income from self-employment or from an eligible partnership or corporation where you are considered a member or shareholder.
There are quite a few changes on the horizon for the province of Ontario. For instance, the basic personal amount is set to increase again in 2022. At the same time, there will be new credits available, particularly for seniors and low-income working families. It will be interesting to see what further announcements are made in this regard.