It’s a common conundrum for many Canadians right now: the cost of living is going up (including what’s on your grocery bill), but you still want to get out of the house and create special memories with friends and family. If you live in Ontario, you may be happy to hear that you still have a few weeks to take advantage of a unique break: the temporary “Ontario Staycation Tax Credit” for 2022, which comes to an end on Dec. 31, 2022.
If you’re planning a staycation in Ontario in the final days of 2022, you could be eligible to claim it come tax season. With that in mind, here’s what you need to know about the Ontario Staycation Tax Credit — before it expires at the end of this month.
What you can expect from the Ontario Staycation Tax Credit
Ontarians could get 20 per cent personal income tax credit on eligible leisure stay accommodations in Ontario taken between Jan. 1 and Dec. 31, 2022, up to a maximum claim of $1,000 per individual or $2,000 for a family unit, for a maximum credit of $200 or $400, respectively.
Just be sure to hold onto your receipts so that you have the necessary documentation for when the 2022 tax season rolls around.
What you need to be eligible for the 2022 Staycation Tax Credit
In order to qualify for the credit, the stay would have to meet some of the following criteria:
- the staycation lasts less than a month at an eligible accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage, campground or vacation-rental property in Ontario
- the staycation must take place between Jan. 1 and Dec. 31, 2022 (regardless of when you pay for the stays)
- it must be incurred for leisure (i.e., not work purposes)
- it must be paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child, as set out on a detailed receipt
- must be subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt (which must be provided by a supplier registered for the Goods and Services Tax (GST)/Harmonized Sales Tax (HST))
If you’re looking for ideas of where you can take the said staycation, thankfully there are no shortage of great options in the province.
To learn more about the credit (including more details on eligible and ineligible expenses and how to claim the credit), you can visit the Ontario Staycation Tax Credit page online here.