Did you know that if you make your home province of Ontario your 'vacation destination' this year, the government will give you a tax credit. And, this credit will provide an estimated $270 million, in support, to about 1.85 million Ontario families.
The temporary Ontario Stay-cation Tax Credit between January 1 and December 31, 2022 aims to encourage Ontario families to explore our province, while helping the tourism and hospitality sectors recover from the financial impacts of the COVID 19 pandemic.
Ontario residents can claim 20% of their eligible 2022 accommodation expenses, for example, for a stay at a hotel, cottage or campground, when filing their personal Income Tax and Benefit Return for 2022. You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner or eligible children, to get back up to $200 as an individual or $400 as a family. No, the tax credit does not apply to business travel.
Only one individual per family can claim the credit for the year. Your claim can include the eligible expenses of your spouse or common-law partner and your eligible children. An eligible child is not entitled to claim the credit on their personal Income Tax and Benefit Return for 2022.
If you do not have a spouse or common-law partner, or eligible child, you can claim your own eligible expenses for the credit.
You can claim the Ontario Stay-cation Tax Credit for accommodation expenses for a leisure stay of less than a month, in Ontario, at a short-term accommodation or camping accommodation, such as a:
- hotel
- motel
- resort
- lodge
- bed-and-breakfast establishment
- cottage
- campground
Short-term accommodation would generally not include timeshare agreements, or a stay on a boat, train or other vehicle that can be self-propelled.
The accommodation expenses must also:
- have been paid by you, your spouse or common-law partner, or your eligible child, as set out on a detailed receipt
- have been subject to Goods and Services Tax (GST/HST), as set out on a detailed receipt
- have not been reimbursed to you, your spouse or common-law partner, or your eligible child, by any person, including by a friend or an employer
As long as all other conditions are met, you can claim any of the following expenses:
- accommodation for a single trip or multiple trips, up to the maximum expense limit of $1,000 as an individual or $2,000 as a family
- accommodations booked either directly with the accommodation provider or through an online accommodation platform
- the portion of the expense that is necessary to have access to the accommodation
- the accommodation portion of a tour package expense
Keep your detailed receipts for any eligible expenses you incur. Those receipts should include at least all of the following information:
- the location of the accommodation
- the amount that can reasonably be considered to be for the accommodation portion of a stay
- the HST you paid
- the date of the stay
- the name of who you paid
Remember... you can claim the credit on your personal Income Tax and Benefit Return for 2022.
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