Residents who book a trip in Ontario between January 2022 and December 2022 are eligible for the Ontario Staycation Tax Credit. This credit will cover a portion of accommodation expenses.
This one is for the people of Ontario. Due to the rising prices and in-hand budget, most people choose staycation rather than going abroad. Keeping the situation in mind Ontario government came up with an unparallel solution for the locals and tourism industry. In this blog we’ll find out the following:
The local government has introduced a temporary Ontario Staycation Tax Credit. This credit encourages Ontario families to explore their own province. Families can claim up to 20% of their accommodation expenses before December 31, 2022.
The initiative was taken to support the tourist industry, which was crippled by the financial effects of COVID-19. It encourages Ontario residents to go out and explore the province, as well as its many cities and towns.
You can claim eligible expenses on your 2022 Personal Income Tax and Benefit Return. This includes hotel stays, resort bookings, campgrounds, motels, etc.
An individual can claim up to $1000 in accommodation expenses with a maximum of ($200). For a family including a spouse, common-law partner, or eligible children, it’s $2000 with a maximum of ($400).
Anyone who is an Ontario resident can claim the Ontario Staycation Tax Credit by December 31st, 2022. Make sure only one person per family can claim the tax credit for the year.
Only eligible expenses incurred by your spouse or common-law partner and children can be used to claim the credit. Exceptions are made for eligible children in the family.
In the absence of a spouse, common-law partner, or eligible child, you can claim the expenses on your own.
You can qualify for the Ontario Staycation Tax Credit. This is for short-term leisure stays or camp accommodation between Jan 1st, 2022 to Dec 31st, 2022. It does not matter when you made the payment. The tax credit can be claimed for the following:
To receive the Ontario staycation tax credit, expenses must be paid by you, your spouse, common-law partner, or eligible child. This must be shown on a receipt from a supplier registered for GST/HST.
You can claim any of the following expenses if you are meeting other odd requirements:
The following details must be included in the receipt to claim the tax credits:
The Ontario staycation tax credit cannot be claimed for:
Get your tax credit back with a filing of your personal Income Tax and Benefit return for 2022. Ontario Staycation Tax Credit is a refundable personal income tax credit. It allows you to receive credits even if you owe income tax in 2022.
BG Accounting and Business Solutions are one of few companies in Ontario that can ideally guide you through and get your tax credits in your account
Book your consultation now and learn about the process if you are eligible for the Ontario Staycation Tax Credit.
We always ensure our clients save big money by paying less in taxes.