To help tourism and hospitality businesses recuperate from the economic impact of the COVID-19 pandemic, the Ontario government is offering the temporary Ontario Staycation Tax Credit for 2022.
Ontario Staycation Tax Credit 2022
This measure provides indirect relief to Ontario businesses by encouraging Ontario residents to travel within their province. This temporary, personal income tax credit on travel within Ontario applies to leisure stays between January 1, 2022, and December 31, 2022, irrespective of the timing of payment for the stays.
How does the Ontario Staycation Tax Credit work?
Ontario residents can claim 20% of their eligible 2022 accommodation expenses when filing their personal Income Tax and Benefit Return for 2022. Examples of such expenses include a stay at a hotel, cottage, or campground.
Applicants can claim eligible expenses of up to $1,000 as an individual or $2,000 if they have a spouse, common-law partner, or eligible children, to get back up to $200 as an individual or $400 as a family.
Who is eligible for the Ontario Staycation Tax Credit?
To be eligible, an applicant must be an Ontario resident on December 31, 2022. Please note that only one individual per family can claim the tax credit for 2022. But their claim can include the expenses of their spouse or common-law partner and eligible children.
What expenses are eligible under this tax credit?
The Ontario Staycation Tax Credit can be claimed for accommodation expenses for a leisure stay of less than a month in Ontario, at a short-term lodging or camping accommodation, such as a:
- Bed-and-breakfast establishment
Short-term accommodation would not include timeshare agreements, or a stay on any vehicle that can be self-propelled, such as a boat or train.
What is the time period for which the Ontario Staycation Tax Credit may be claimed?
The tax credit is only available for leisure stays between January 1, 2022, and December 31, 2022. It does not apply to business travel.
Does Airbnb count for the Ontario Staycation Tax Credit?
Yes. Airbnb rentals can be included for the tax credit as long as the Airbnb owner is registered for GST/HST and the accommodation meets all other criteria listed.
What are some other things to keep in mind to be eligible for this tax credit?
The lodging expenses you claim must:
- Be paid by you, your spouse or common-law partner, or your eligible child, and documented on a detailed receipt
- Have been subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as reflected on a detailed receipt
- Not have been reimbursed to you, your spouse or common-law partner, or your eligible child, by any person, including an employer or friend
Your receipts demonstrating your eligibility for accommodation expenses should include all of the following information:
- Location of the accommodation
- Amount paid for the accommodation portion of a stay
- GST/HST paid
- Date of the stay
- Name of the payer
What can you claim under the Ontario Staycation Tax Credit?
If eligible, you can apply for any of the following costs:
- Accommodation for a single trip or more, up to the maximum expense limit of $1,000 as an individual or $2,000 as a family
- Accommodations reserved either directly with the accommodation provider or through an online accommodation platform
- The portion of the expense essential to have access to the accommodation
- The accommodation part of a tour package expense
How to claim the Ontario Staycation Tax Credit?
You can apply for the tax credit on your personal Income Tax and Benefit Return for 2022.
Am I eligible to claim the tax credit even if I don’t owe income tax for 2022?
Yes, provided you are eligible for the tax credit.
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