Planning an Ontario staycation in 2022? You may be able to claim it on your taxes.
As the COVID-19 pandemic continues, many Canadians are looking to vacation closer to home. If you live in Ontario, you could be eligible to claim your staycation accommodation costs when tax season comes.
The Ontario government is rewarding Ontarians who vacation locally with a new, temporary Ontario Staycation Tax Credit, which comes into effect on January 1, 2022. Announced as part of Premier Doug Ford’s Fall Economic Statement tabled in November 2021, the Ontario Staycation Tax Credit is meant to promote tourism within the province, giving local businesses a boost.
Here’s how it works:
- The province will give Ontario residents back 20 percent of the money they spend on eligible accommodations between January 1 and December 31, 2022 up to a maximum of $1,000 for an individual and $2,000 for a family – for a maximum credit of $200 or $400 respectively.
- Ontario residents can apply for this refundable credit when they file their 2022 personal tax returns. They’ll benefit even if they don’t owe any tax.
- Eligible accommodations are stays of less than a month at places like hotels, motels, resorts, lodges, bed-and-breakfasts, cottages or campgrounds in Ontario. Only accommodation costs are claimable; other associated vacation expenses, such as food and activity costs, are not.
- Must take place between January 1 and December 31, 2022
- Must be incurred for leisure, not business
- Must be paid by (and not subsequently reimbursed to) an Ontario tax filer, spouse or common-law partner, or eligible child
- Must be subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST)
- Details of the payor and the application of GST/HST must be set out in a receipt
Looking for Ontario vacation ideas this year?
Here are a few links to consider:
If you have questions about the new Ontario Staycation Tax Credit, talk to a Richardson Wealth Investment Advisor.