If you’re itching for a break, the Ontario government has introduced a temporary tax credit on eligible accommodations for the period of January 1 to December 31, 2022.
The Ontario Staycation Tax Credit provides a 20% personal income tax credit on accommodations up to $1,000 for an individual or $2,000 for a family. This results in a maximum credit of either $200 for individuals or $400 for families and will either be a reduction to your income tax owed or a refund.
According to the government, an eligible accommodation expense would have to be:
- For a stay of less than a month at an eligible accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage or campground in Ontario;
- For a stay between January 1 and December 31, 2022;
- Incurred for leisure (e.g., a non-business purpose);
- Paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child, as set out on a detailed receipt;
- Not reimbursed to the tax filer, their spouse or common-law partner, or their eligible child, by any person, including by a friend or an employer; and
- Subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt.
Simply file your 2022 tax return to claim the tax credit with accompanying detailed receipt. Be sure to save your receipt somewhere safe as you won’t be filing your return until 2023. You can bet auditors will be looking for a detailed receipt, so consider this your warning.
So whether it’s a family trip or a much needed R&R (spa anyone?), Ontario has much to offer. Here’s your chance to try something new.
Where would you like to visit in Ontario for your staycation?