Did you take a vacation in Ontario last year? You may qualify for up to $400 back on your taxes

How to Claim the Ontario Staycation Tax Credit: A Guide by Lucas CPA

Get back up to $400 just for taking a vacation in Ontario. Here's how:

• Do you live in Ontario?
• Did you stay at a hotel, campground, or Airbnb during 2022?
• Was it in Ontario?
• Was it for a vacation?
• Did you keep your receipts?
• Were you charged GST/HST on your receipt?

If you answered YES to all, keep reading...

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Ontario's Staycation Tax Credit for 2022 was launched to encourage Ontario residents to explore their province and support the tourism and hospitality sectors that have been hit hard by the COVID-19 pandemic. If you're an Ontario resident who's eligible for the tax credit, you can claim up to 20% of your eligible accommodation expenses for 2022, up to a maximum of $200 per person, or $400 for couples.

Step 1: Determine Your Eligibility

To be eligible for the Ontario Staycation Tax Credit, you must have been an Ontario resident on December 31, 2022. You can claim up to $1,000 in eligible expenses if you're filing as an individual or up to $2,000 if you're filing as a family. An eligible family consists of you, your spouse, common-law partner, or eligible children.

Step 2: Identify Your Eligible Expenses

Eligible expenses for the tax credit include accommodation expenses for a leisure stay of less than a month in Ontario at a short-term accommodation or camping accommodation such as hotels, motels, resorts, lodges, bed-and-breakfast establishments, cottages, campgrounds, and vacation rental properties. You can only claim expenses paid between January 1, 2022, and December 31, 2022.

Step 3: Keep Your Receipts

You must keep all receipts that include the location of the accommodation, the amount that can reasonably be considered to be for the accommodation portion of the stay, the amount of GST/HST paid, the date of the stay, and the name of the payor. Only expenses paid by you, your spouse or common-law partner, or your eligible children are eligible for the tax credit.

Step 4: File Your Personal Income Tax and Benefit Return for 2022

To claim your Ontario Staycation Tax Credit, file your personal Income Tax and Benefit Return for 2022. The Ontario Staycation Tax Credit goes on line 63052 of Form ON428 of your T1 General.

Step 5: Book a call with Lucas CPA

If you have any questions or concerns about the tax credit, you can contact the Canada Revenue Agency by phone at 1-800-959-8281, or you can contact Lucas CPA.

Summary

The Ontario Staycation Tax Credit for 2022 is an excellent opportunity for Ontario residents to explore their province and support local businesses in the tourism and hospitality sectors. With the right information and documentation, you can claim up to 20% of your eligible accommodation expenses for 2022. As always, if you have any questions or concerns, feel free to contact the Canada Revenue Agency or consult with an accountant like Lucas CPA to ensure you're making the most of the tax credit.

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For more information see Ontario Staycation Tax Credit | ontario.ca