Call Text Email

How to Claim Ontario Staycation Tax Credit

How to Claim Ontario Staycation Tax Credit

For many of us, after the pandemic, vacations were put on the back burner. Whether it was due to the nerves of travelling, the cost or just getting used to local adventures aka staycations! As a Toronto real estate agent, I have to be ready for showings at any moment and the local vacations became my norm for a couple of years. The Ontario government recognized this and introduced a temporary, refundable “Staycation Tax Credit” that can be claimed on your personal income taxes for 2022. So let’s get into it!

What is the Ontario Staycation Tax Credit

One thing to note is this is a temporary tax credit. The point of the credit is to encourage Canadians and their families to explore our beautiful province while boosting our tourism to recover from the financial losses during the pandemic.

How Does the Ontario Staycation Tax Credit Work?

Residents of Ontario are eligible to claim 20% of their accommodation expenses from 2022 including hotels, campsites, cottages, etc. When filing your taxes, you will be able to claim up to $1,000 as an individual and $2,000 as a couple (common-law, partner, or eligible children) to provide a refund of up to $200 as a single or $400 as a family.

This credit is expected to provide approximately 1.85 million families in Ontario with an estimated $270 million to support our province.

Who Can Claim the Tax Credit

As an Ontario resident as of December 31st, 2022, you are eligible to apply for the tax credit. When it comes time to file your taxes, only one person per family is eligible to claim the credit.

What Can You Claim?

The accommodations that are eligible to be claimed must have taken place between January 1 to December 31st, 2022. When the accommodation was paid for does not matter, it depends on when it took place. Note, the stay must have been for less than a month and taken place in Ontario. Here is a list of the types of accommodations that can be claimed:

  • motel
  • hotel
  • bed-and-breakfast establishment
  • resort
  • cottage
  • lodge
  • campsite
  • vacation rental property

Other things to consider when claiming the tax refund. The expenses must have been paid by yourself or the other eligible party and a detailed receipt must be provided by the supplier.  If all of these conditions are met, you are eligible to claim any of the following expenses:

  • accommodations for a trip or trips to an expense limit of $1,000 per person ($2,000 as a family)
  • the accommodation part of a tour expense
  • accommodations that were booked directly with the provider (or through a platform online) with proof of receipt

Something else to note about your claim is that your receipt needs to be detailed and include the location, amount plus GST/HST clearly outlined, when the stay occurred and the name of who paid.

What Can’t You Claim?

As already mentioned, the accommodation that is being claimed cannot exceed a month. The short-term stay would not include a timeshare, train, boat vacay or any other vehicle that can be self-controlled. Some other credits that cannot be claimed are:

  • educational or work-purposed accommodations
  • any expenses that have been reimbursed to you
  • expenses that are not for the accommodation such as gas, flights, food, parking, attractions or parking

How to Claim the Tax Credit

When doing your personal income taxes for 2022, you can claim this and receive the benefit on your return for that year! If you would like more information about this credit, contact your accountant. If you don’t have one, feel free to reach out and we would be happy to recommend one.

Source: Ontario.ca

 

Leave a Reply

Your email address will not be published. Required fields are marked *