For the last few weeks of 2022, Ontario residents can still take advantage of the ‘Ontario Staycation’ tax credit.
In an effort to stimulate the tourism and hospitality sector, after COVID-19 closures, the Ontario government established a tax credit this year encouraging individuals and families to take short-term visits inside the province.
Read on to see how you might receive up to 20% of your qualified 2022 lodging expenditures reimbursed in Ontario.
Overview
The temporary Ontario Staycation Tax Credit for 2022 is designed to encourage Ontario families to explore the province while also assisting the tourist and hospitality industries in recovering from the financial effects of the COVID-Covid 19 epidemic.
When completing their personal Income Tax and Benefit Return for 2022, Ontario individuals can claim 20% of their qualified lodging costs, such as a stay at a hotel, cottage, or campsite. Individually, you can claim up to $1,000 in qualifying costs, or $2,000 if you have a spouse, common-law partner, or eligible children, for a total refund of up to $200 or $400 for a family.
About 1.85 million Ontario households will benefit from the credit, which is expected to cost $270 million.
Who is eligible
If you are a resident of Ontario by December 31, 2022, you are entitled for the credit.
The credit is only available to one person per household per year. The qualifying costs of your spouse or common-law partner, as well as your eligible children, may be included in your claim. The credit cannot be claimed on a child’s personal income tax and benefit return for the year 2022.
If you don’t have a spouse, common-law partner, or eligible child, you can still claim the credit for your own qualified costs.
Eligible expenses
For a leisure stay of less than a month in Ontario, you can claim the Ontario Staycation Tax Credit for lodging costs at a short-term or camping facility, such as a:
- hotel
- motel
- resort
- lodge
- bed-and-breakfast establishment
- cottage
- campground
Timeshare agreements and stays on a boat, rail, or other self-propelled vehicle are not considered short-term accommodations.
The tax credit is only valid for stays between January 1, 2022, and December 31, 2022, regardless of when the stays are paid for. Business travel is not eligible for the tax credit.
The accommodation expenses must also:
- have been paid as described on a detailed receipt provided by you, your spouse or common-law partner, or an eligible child.
- be shown on a detailed receipt, that confirms payment was subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST).
- not been repaid by anyone, including a friend or an employer, to you, your spouse or common-law partner, or your eligible child
As long as all other conditions are met, you can claim any of the following expenses:
- accommodation for a single or several journeys, up to a maximum expenditure limit of $1,000 per person or $2,000 per family.
- Accommodations booked directly with the hotel or through an online booking site
- the percentage of the cost that is required to gain entry to the lodging
- a travel package’s lodging cost portion
How to claim the credit
For any qualified costs you incur, you must retain detailed receipts. All of the following information should be included on such receipts:
- the location of the accommodation
- the amount that can reasonably be considered to be for the accommodation portion of a stay
- the GST/HST paid
- the date of the stay
- the name of the payor
You can claim the credit on your 2022 Individual Income Tax and Benefit Return.
The Ontario Staycation Tax Benefit is a personal income tax credit that is refundable. This implies that if you qualify, regardless of whether you owe income tax in 2022, you can receive this tax credit.
Contact The Ontario Government For Details
Please call the Ontario Budget Hotline at 1-800-337-7222 if you have any queries concerning the tax credit.
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