What is the Staycation Tax Credit For Ontario Residents?

Staycation Tax Credit For Ontario Residents

Residents who booked a trip anywhere in the province between Jan 2022 to Dec 2022, are eligible to claim a portion of accommodation expenses thanks to the new, temporary Ontario Staycation Tax Credit.

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:

  • What is Ontario Staycation Tax Credit
  • Who is Eligible for Tax Credit?
  • What are Eligible & Ineligible Expenses?
  • How to claim the Tax Credit?

What is Ontario Staycation Tax Credit

The local government poses a temporary Ontario Staycation Tax Credit that encourages Ontario families to discover the province and enables them to claim the accommodation expense up to 20% on Dec 31st, 2022.

The initiative was taken to support the crippling tourist industry from the financial blows of COVID-19 and promotes outings for Ontario residents in the province and its many cities and towns.

You can claim the eligible expense into the Personal Income Tax and Benefit Return for 2022 for a hotel stay, resort booking, campground, motel, 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).

Who is Eligible?

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 the eligible expenses of your spouse or common-law partner and eligible children can be put forward to claim the credit except for any eligible child in the family.

In the absence of a spouse, common-law partner, or eligible child, you can claim the expenses on your own.

What are Eligible Expenses?

You can be rewarded with the Ontario Staycation Tax Credit if you had a short-term leisure stay or camp accommodation between Jan 1st, 2022 to Dec 31st, 2022, regardless of the payment timings. The tax credit can be claimed for the following:

  • Hotel Stay
  • Motels
  • Resort Booking
  • Bed-and-Breakfast facility
  • Cottage
  • Camping
  • holiday rental property

To receive the Ontario staycation tax credit, all the expenses must be paid by you, your spouse or common-law partner, or the eligible child, as shown on the receipt given by a supplier registered for GST/HST.

You can claim any of the following expenses if you are meeting other odd requirements:

  • Single or multiple trip accommodations, up to the maximum expense limit of $1,000 for individuals or $2,000 for families.
  • Direct booking of accommodation with the provider or via an online platform.
  • The portion of the expense required to have access to the accommodation.
  • The accommodation portion of a tour package expense.

The following details must be included in the receipt to claim the tax credits:

  • the place of the accommodation
  • the expense that can be considered as the accommodation portion of a stay
  • Any GST/HST amount paid
  • valid date of the stay
  • the name of the payer

What are Ineligible Expenses?

The Ontario staycation tax credit cannot be claimed for:

  • Travel expenses like car rentals, fuel, tickets, shopping, or entry fees to local attractions, not for short-term accommodation or camping.
  • If accommodation expense is refunded to you, your spouse or common-law partner, or your eligible child, by any other person.
  • For school, education, work, employment, or business reasons, or that can qualify for a medical expense tax credit.

How to Claim Your Credit

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 that enables you to receive credits even if you owe income tax for 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.

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