When you think of going on vacation, you might imagine flying down to a tropical destination or walking the cobblestone streets of a European town. But there are so many amazing places to explore right in your own backyard! And with the Ontario Staycation Tax Credit, the government actually incentivizes you to stay and enjoy a staycation in some of Ontario’s most beautiful locations this year.
what is the Ontario staycation tax Credit?
The Ontario Staycation Tax Credit is a temporary initiative introduced at the beginning of 2022 to help the hospitality and tourism economy recover after COVID-19. The pandemic basically eliminated tourism, and with restaurants closed or only serving takeout, many struggled to stay afloat.
If you’re a resident of Ontario, you may be eligible for the Ontario Staycation Tax Credit, which allows you to claim back 20% of eligible expenses on your 2022 Income Tax return. You can claim up to $1000 as an individual or $2000 as a couple or family.
who can claim the Ontario staycation tax credit?
Anyone that is a resident of Ontario on December 31, 2022, can claim the Ontario Staycation Tax Credit. But it’s important to note that only one person per family/couple can claim the credit, although they can claim the expenses of their spouse, common-law partner and children. Children cannot claim the tax credit, and it needs to be claimed by their parents or guardians.
What expenses are eligible for the Ontario Staycation Tax Credit?
Not every purchase you make in the hospitality and tourism industry is eligible for the tax credit. It only covers short-term accommodation expenses that are no longer than a month in length and fall between January 1, 2022, and December 31, 2022. You must be physically staying in the accommodation between those dates as well, not paying for a future trip. Some of the eligible expenses include:
- Bed-and-breakfasts
- Hotels
- Motels
- Vacation rentals
- Cottages
- Resorts
- Campgrounds
What expenses are NOT eligible for the Ontario Staycation Tax Credit?
The tax credit does not cover stays in short-term accommodation if they are for business or educational purposes. Your stay must be for leisure purposes only. You can also not claim your accommodation if it is eligible for a medical expense tax credit.
You cannot claim any accommodation for which you’ve been reimbursed, whether by a family member, friend, employer or anyone else. Other travel, tourism and hospitality expenses such as meals, car rentals, parking, admission to attractions, fuel or flights are not eligible for the tax credit.
What kind of trips can you take in Ontario?
There are tons of amazing trips you can take without leaving Ontario. The Ontario Staycation Tax Credit provides an excellent opportunity to explore everything the province has to discover! Some great trip ideas include:
- Muskoka golf resort stay and play golf package
- Niagara Falls weekend getaway
- Camping in the Bruce Peninsula
- Visit Ottawa to see the parliament buildings
- Wine tours in Prince Edward County
Check out our Golf packages!
Book one of our stay and play golf packages to claim your accommodation on your 2022 tax return, and don’t hesitate to reach out to us if you have any questions.
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