Have you had a vacation or are you planning a vacation in Ontario in 2022? If so, remember to keep your receipts to claim the Ontario Staycation Tax Credit.
How does it work?
Ontario residents can claim 20% of their eligible 2022 accommodation expenses, for example, for a stay at a hotel, cottage or campground, when filing their personal income tax return for 2022. You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you 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?
You are eligible to claim the credit if you are an Ontario resident on December 31, 2022.
Only one individual per family can claim the credit for the year. Your claim can include the eligible expenses of your spouse or common-law partner and your eligible children. An eligible child is not entitled to claim the credit.
If you do not have a spouse or common-law partner, or eligible child, you can claim your own eligible expenses for the credit.
What are eligible expenses?
You can claim the Ontario Staycation Tax Credit for accommodation expense for a leisure stay of less than a month in Ontario, at a short-term accommodation or camping accommodation, such as a:
- hotel
- motel
- resort
- lodge
- bed-and-breakfast establishment
- cottage
- campground
- vacation rental property
The tax credit only applies to leisure stays between January 1, 2022 and December 31, 2022, regardless of the timing of the payment for the stays. Also, the accommodation expenses must have been paid by you, your spouse or common-law partner, or your eligible child, as set out on a detailed receipt provided by a supplier registered for the Goods and Services Tax (GST)/Harmonized Sales Tax (HST).
As long as all other conditions are met, you can claim any of the following expenses:
- accommodation for a single trip or multiple trips, up to a maximum expense limit of $1,000 as an individual or $2,000 as a family
- accommodations booked either directly with the accommodation provider or through an online accommodation platform
- the portion of the expense that is necessary to have access to the accommodation
- the accommodation portion of your tour package expense.
You must keep all your detailed receipts for any eligible expenses you claim for the credit. Those receipts must include:
- the location of the accommodation
- the amount that can reasonably be considered to be for the accommodation portion of a stay
- the amount of the GST/HST paid
- the date of the stay
- the name of the payor
Are there ineligible expenses?
Short-term accommodation would generally not include a timeshare agreement or a stay on a boat, train or other vehicle that can be self-propelled.
Also, the tax credit cannot be claimed for:
- travel expenses that are not for short-term accommodation or camping accommodation, such as expenses for car rentals, fuel, flights, groceries, parking, or prices of admission into local attractions and places of interest
- accommodation expenses reimbursed to you, your spouse or common-law partner, or your eligible child, by any person, including by a friend or an employer
- expenses that are incurred for school or educational purposes, or for a work, employment or business purpose, or that can be claimed for a medial expense tax credit.
Have questions or need clarification, please connect with a Lott & Company team member.
In other news, we have some exciting news at Lott & Company to share with you. Three of our team members have recently attained their CPA designation. You can read the details here.
