You’ll want to familiarize yourself with the Ontario Staycation Tax Credit if you’re planning day trips or weekend excursions from Toronto this summer.
As we look forward to warmer weather, many people are likely to make travel plans instead of everything starting to reopen after months of cancellations and closures.
The 2022 Staycation Tax Credit allows eligible recipients to save at local destinations in Ontario at short-term accommodations or camping locations such as hotels, motels, lodges, bed and breakfasts and lodges. campgrounds, among others.
The tax credit applies to leisure stays until the end of this year, regardless of when payments were made on the stay.
As long as you paid for the accommodation and the costs are shown on an itemized receipt from a GST/HST registered supplier, you can save on:
- single or multiple trips up to $1,000 for an individual and up to $2,000 for families
- stays booked either directly with the accommodation or via a website
- the part of the expense necessary to have access to housing
- the accommodation part of an organized trip
Receipts must include details of the location of the accommodation, the amount paid for the stay, the amount of GST/HST paid, the date of the stay and the name of the person who paid.
Some expenses are not eligible for the staycation tax credit at all, i.e. anything that “self propels” such as time spent on a train or boat, travel expenses that are not for short-term accommodation terms such as car rentals and grocery purchases, reimbursed expenses, expenses incurred for educational purposes, and expenses eligible for the medical expense tax credit.
You can get up to 20% of your eligible accommodation expenses in 2022 when you file your personal income tax return next season.
You must be a resident of Ontario on December 31, 2022 to qualify and only one person per family can apply for the year, although expenses may also include eligible spouses and children.
The stay tax credit can be claimed on your 2022 personal income tax and benefit return, and applies whether or not you owe taxes for 2022.
It is expected to provide about $270 million to residents of Ontario.