There’s some good news for Ontarians weary at the thought of international travel as pandemic restrictions roll on: a staycation tax credit to encourage residents to get out and enjoy all the province has to offer.
From January 1st to December 31st, 2022, Ontario residents can claim 20% of their accommodation, be it a hotel or cozy cabin, when filing their 2022 personal income tax and benefit return.
Ontarians are eligible to claim expenses of up to $1,000 as an individual with a $200 return, or $2,000 if you have a spouse, common-law partner or children, which provides a $400 return.
The accommodation must be a short-term rental such as a hotel, lodge, motel, or a bed and breakfast – Time-shares, boats and trains are excluded from this list. The tax also doesn’t apply to business travel. You must be able to show proof that the trip has not been reimbursed by you, or by anyone, even a family member or employer. A receipt will be needed to show the amount paid, plus any GST or HST. Further, the tax credit is refundable, which means an individual does not need to have income to receive this credit.
Enjoy your staycation! We look forward to hearing all about it when filing your 2022 tax return.