Vacation in Ontario and Receive a Tax Credit

Hello,

Did you know the Ontario government wants you to take a vacation? In fact, they will give you money if you do! Introducing the temporary Ontario Staycation Tax Credit for 2022.

What is it?

• It aims to encourage Ontario families to explore the province, while helping the tourism and hospitality sectors recover from the financial impacts of the COVID‑19 pandemic.

How does it work?

• Ontario residents can claim 20% of their eligible 2022 accommodation expenses when filing their personal Income Tax and Benefit Return for 2022. Thinking of staying at a hotel, cottage or campground this year? Keep those receipts! 
• You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner or eligible children, to get back up to $200 as an individual or $400 as a family.
• you can claim any of the following expenses:
  • accommodation for a single trip or multiple trips, up to the maximum expense limit of $1,000 as an individual or $2,000 as a family
  • accommodations booked either directly with the accommodation provider or through an online accommodation platform
  • the portion of the expense that is necessary to have access to the accommodation
  • the accommodation portion of a tour package expense

Who is eligible?

• You are eligible to claim the credit if you are an Ontario resident on December 31, 2022.
• Only one individual per family can claim the credit for the year. Your claim can include the eligible expenses of your spouse or common-law partner and your eligible children. An eligible child is not entitled to claim the credit.
• If you do not have a spouse or common-law partner, or eligible child, you can claim your own eligible expenses for the credit.

Eligible Expenses

• You can claim the Ontario Staycation Tax Credit for accommodation expenses for a leisure stay of  less than a month in Ontario, at a short-term accommodation or camping 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.
• The accommodation expenses must have been paid by you, your spouse or common-law partner, or your eligible child, as set out on a detailed receipt provided by a supplier registered for the Goods and Services Tax (GST)/Harmonized Sales Tax (HST).

How to claim the credit

• You can claim the credit on your personal Income Tax and Benefit Return for 2022.
• The Ontario Staycation Tax Credit is a refundable personal income tax credit.  This means that if you are eligible, you can get this tax credit regardless of whether you owe income tax for 2022.
• You must keep your detailed receipts for any eligible expenses you claim for the credit.
  So spread the word with friends, family and colleagues and enjoy some well deserved time off this year!

Best,
Mani (August 16, 2022)
Source: For more information please check the Ontario website: https://www.ontario.ca/page/ontario-staycation-tax-credit

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