Are you taking a vacation this year? The New Staycation Tax Credit for Ontario may be proper for you! This refundable personal income tax credit is available to anyone in the province who spends at least a night in suitable accommodation. This credit also applies to seniors and workers, so it makes sense to take advantage of this new program! Read on to learn more:
Refundable Personal Income Tax Credit
The government offers a refundable personal income tax credit for people who enjoy a short leisure stay in Ontario. This Ontario tax credit applies to lodging expenses of less than a month.
To claim the credit, you must provide receipts of expenses, including the purchaser’s name, the location, and the amount you spent. You can take the credit when traveling with your spouse, common-law partner, or eligible children.
Available to Seniors
The new staycation tax credit will give seniors and others up to 20% off lodging expenses. The credit is available for the 2022 tax year and applies to accommodation expenses incurred between January 1 and December 31, 2022. In addition, the government is extending or enhancing several existing tax credits, such as the Ontario Seniors’ Home Safety Tax Credit. The seniors’ public transit tax credit in Ontario allows seniors to claim up to $450 per year on eligible expenses. Consider consulting with a tax professional to maximize your benefits if you are a senior.
You can use this Ontario staycation tax credit when booking any travel package or activity with an eligible provider, including hotels, restaurants, entertainment tickets, etc. The tax credit equals 20% of eligible expenses up to $1,000 per person ($2,000 per couple), with a maximum benefit of $400 per person ($800 per couple).
How to Claim Your Staycation Tax Credit
1) Book your staycation: Book a hotel room or Airbnb in a different city within Ontario.
2) Get your receipt: Keep the receipt when you check out your staycation! It’s probably going to be around $200—but that means you can claim back up to $200 on YOUR taxes!
3) Claim it: Don’t forget to forward your staycation receipt to your tax preparer when it is time to file your 2022 taxes!