With our ‘vacation’ season upon us, we thought we would remind you of the Ontario government’s incentive to travel and stay within Ontario this year. Explore our beautiful province AND receive an Ontario Staycation Tax Credit for 2022 when you file your income tax. As we all know the hospitality and tourism industries have been hit hard during the Covid pandemic. As these industries are slowly recovering, the provincial government is encouraging residents to go out and enjoy our beautiful province and you will be given a tax credit for doing so.
When you file your income tax you will be able to claim up to $1,000 for an individual and $2,000 for a couple – actually reducing your income tax payable by $200 and $400 respectively.
Obviously, there are rules that need to be followed in order to be eligible to receive this credit. Essentially you must be an Ontario resident as of December 31st of 2022 to qualify. To claim your Ontario Staycation Tax Credit, you must be staying for leisure not business purposes in a hotel, motel, resort, campground, cottage, B&B for a stay of less than a month.
Keep in mind, you must keep detailed receipts to prove your eligibility at tax time. This would include having the following information available: date, location, amount and who paid for the ‘staycation’.
In addition, some cities tourism boards are offering additional free nights or discounts to boost the travel and tourism industry. Take advantage of this if you can. Check out Ottawa Tourism for example as they are offering to pay for a third night stay (if you are staying at a participating hotel – no strings attached).
Enjoy the summer………………get out and explore our beautiful province!! Safe travelling!!
Deb, Gary and Kelly