In an attempt to help the Ontario travel industry recover from the difficult years of 2020 and 2021, the Government of Ontario introduced the Ontario Staycation Tax Credit as an incentive for Ontarians to travel, explore, and spend money in their own province.
Under the Ontario Staycation Tax Credit, Ontarians can claim a portion of the money spent travelling in Ontario in 2022 against their taxable income when they file their income taxes, helping them pay less tax.
The Ontario Staycation Tax Credit was valid only in the year 2022 and will not be available to incentivize travel within Ontario in 2023.
Here’s the details on who’s eligible, how much you can claim, and more.
How much can you claim under the Ontario Staycation Tax Credit?
Ontario residents can claim up to 20% of eligible expenses incurred travelling in Ontario during the 2022 calendar year, up to a maximum of $1,000 for an individual, or $2,000 for couples or families.
If the maximum amount is claimed, an individual can receive a credit worth $200, and a couple or family can receive credits worth $400.
What kind of expenses qualify for the Ontario Staycation Tax Credit?
Eligible expenses include accommodations for any personal or leisure travel within Ontario between January 1, 2022 and December 31, 2022.
These accommodations include:
- hotels,
- motels,
- Airbnbs,
- campgrounds, and
- other short-term rentals (bed and breakfasts, VRBOs, etc.).
Just as you’d keep your receipts for a charitable donation or RRSP contribution in order to write-off those expenses, it’s important to hold onto the receipts for any money spent on accommodations in Ontario during 2022. The Canada Revenue Agency reserves the right to request these receipts as proof that the expense is legitimate.
These receipts must be in your name and:
- include the date you traveled,
- the location of the accommodation,
- the amount spent on the actual lodging (this could be tricky with an all-inclusive resort), and
- the portion spent on GST/HST.
You cannot claim expenses like car rentals, fuel, flights, and food as part of your credit.
Who is eligible to receive an Ontario Staycation Tax Credit?
If you were a resident of Ontario on December 31, 2022 and you spent money travelling in Ontario during the year 2022, you are eligible for the Ontario Staycation Tax Credit.
It’s important to know that only one member of your family can receive this credit.
Will you claim the Ontario Staycation Tax Credit?
Do you think the Ontario Staycation Tax Credit was a good idea? Do you think it should be reintroduced as a permanent tax credit?
We want to know your opinions – tell us in the comments below.
FAQ
Do Airbnbs qualify as an expense under the Ontario Staycation Tax Credit?
Yes. Airbnbs and other short-term rental accommodation are eligible expenses under the Ontario Staycation Tax Credit.
How do I claim my Ontario Staycation Tax Credit?
You can claim the expenses on your 2022 tax return.
How long will the Ontario Staycation Tax Credit last?
The Ontario Staycation Tax Credit is a temporary credit – Ontarians can claim eligible expenses incurred during the 2022 calendar year. The program was not extended past the year 2022.
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