How to make the most out of the new Ontario staycation tax credit
Ontario’s government recently offered a nice holiday gift to residents of the province, though it comes with a few very simple conditions.
Using terminology that more normally fits inside a twitter hashtag, the province of Ontario released a fiscal statement that highlights what tax authorities have dubbed the “Ontario Staycation Tax Credit“. This is a temporary measure by the provincial government that’s designed to promote tourism inside Ontario and thus alleviate the effects of the COVID pandemic while encouraging low-travel tourism.
According to the conditions of the credit, Ontario residents may get a refund of 20% of their spending on accommodations and other provincial travel-related expenses. This will apply for vacations that they embark on between January 1st and December 31, 2022.
The amounts that are allowed reach $1000 for a single individual and up to $2000 for a family. The refundable credit on these travel expenses can be requested by Ontarians when they file their 2022 personal income tax returns. As mentioned, the total refund quantity is no more than 20%, which translates to $200 refunded on individual maximum tax-exempted spending of $1000 and $400 on spending for a family amounting to $2000.
The deeper details of the Staycation credit have their fine print and exemptions but in general terms, they consist of the above, proof of expenditures and filing your income taxes. As for covered vacation expenses, they apply specifically for accommodations of less than a month in establishments such as hotels, motels, lodges, bed-and-breakfasts, vacation rental cottages, campgrounds and of course, motels too.
Why You Should Take Advantage of the Ontario Staycation Credit
If you’re a tax-registered resident of the province, it’s a great idea to take advantage of this new credit for any of your vacation needs throughout 2022. A visit to Ontario’s numerous hiking getaways and urban attractions is already something with plenty of lovely possibilities to take in.
Now being able to treat yourself or your family to such a vacation with the promise of at least $200 in expenses being given back to you eventually only makes things better.
The idea of $200 to $400 being given back to you as a tax refund only after a year or more has gone by may seem like a bit of a distant promise, but when that refund time does roll around, the extra cash will without a doubt be very useful for some random future expense.
How to Receive the Ontario Staycation Credit
Ontario is absolutely brimming with vacation getaways for both nature lovers and people looking for the best in urban sophistication. A trip to vast, cosmopolitan Toronto can result in a whole night’s stay at a fine hotel being given back to you through the Staycation refund you’ll eventually receive.
It’s also an opportunity for troy wonderful romantic getaways to the city’s numerous bars, restaurants, cultural events and other unique sights. Or you could visit the absolute spectacle of raw natural energy that is Niagara Falls, either in winter, fall or summer, or whenever you like in 2022. As far as family getaways go, Niagara is unbeatable.
Whatever your vacation ideas might be, Ontario’s government has made the credit as easy to use as possible. Even people who owe no personal income taxes for 2022 may file for the Staycation Tax Credit.
In addition to this, you are eligible if you fulfill the following obligations:
- Your stay is at an eligible place of accommodation, including: hotels, motels, lodges, resorts, bed-and-breakfasts, cottages, campgrounds and vacation rental homes.
- Your stay is of less than a month’s duration –
- Your vacation was undertaken between January 1st and December 31st, 2022.
- You made the trip for leisure reasons and not for work or business.
- Your trip was paid for by whoever is filing the taxes in Ontario with receipts as proof of expense. Eligible partners, children and spouses can also pay for and file taxes for a trip.
- Your vacation accommodation expense was not later reimbursed to you by family, friends or employers.
- Your trip is subject to GST and HST taxes that should be part of the receipt
We can’t understate the sheer number of vacation possibilities that Ontario presents for taking advantage of this nice little tax windfall. If you’d like to enjoy your own $200 to $400 refund, take a look at the range of sights and attractions throughout Ontario that are just waiting to be explored.Winter Getaway Offers Spring Getaway Offers Summer Getaway Offers Fall Getaway Offers