After two years of cancelled or postponed travel plans due to COVID-19, it seems like everyone is taking trips this summer. Why not avoid the lines and chaos at the airport and explore Ontario instead? You might even get a tax credit.
Earlier this year, the Ontario government introduced a temporary staycation tax credit for Ontario residents who vacation in Ontario in 2022. Eligible 2022 accommodation expenses up to $1,000 for an individual or $2,000 for a family or couple can be claimed on taxpayers 2022 personal income tax return for a 20% refundable credit up to $100 for an individual or $200 for a family. The only eligibility requirement for the Ontario Staycation Tax Credit is to be an Ontario resident on December 31, 2022.
The Staycation Tax Credit is intended to help the tourism and hospitality sectors in Ontario to recover from the COVID-19 pandemic. Ontario has such a wide range of potential vacations and the eligible expenses reflect the diversity available for Ontario Staycations. Eligible accommodation expenses are any stays of less than a month in Ontario at hotels, motels, resorts, lodges, bed and breakfasts, campgrounds, and cottage and vacation rentals. Unfortunately, timeshare stays and stays on boats like a cruise are not eligible. To claim the credit, you, your spouse, or your eligible child must have paid for the accommodations and have a detailed receipt provided by a GST/HST registered supplier. One person per family or couple can claim the credit for the year.
What if you booked a vacation package that included flights, car rentals, admission to attractions, food, or other expenses in addition to accommodation? Don’t worry, the portion of your trip or tour package for your accommodation is eligible for the credit. Just make sure your receipt shows the amount that could reasonably be considered to be for the accommodation portion. Most vacation package invoices should identify this.
Oh no, you booked and paid for your 2022 staycation last year before you knew about the Staycation Tax Credit? No problem! The Staycation tax credit applies to stays between January 1, 2022 and December 31, 2022. So, no matter when you paid or booked your 2022 Ontario Vacation, as long as your stay is in 2022, the accommodation expenses are still eligible.
So why not explore Ontario this summer and take advantage of the Ontario Staycation Tax Credit? You get a nice vacation and some money back. And who doesn’t like getting a bit extra back after filing your taxes?
For more information on the temporary Ontario Staycation Tax Credit visit www.ontario.ca/page/ontario-staycation-tax-credit.
Author
Victoria Greenfield
Staff Accountant
[email protected]
