Don't forget about this Ontario credit this tax season
Province estimates the credit would be used by 1.85 million families, costing $270 million
Did you go on a staycation last year? You may be eligible for a tax credit.
Ontario residents who went on a vacation within the province in 2022 may be able to claim 20 per cent of their travel accommodation expenses when they file their taxes this year.
Here's everything you need to know about the credit
In order to qualify, you must be a resident of Ontario as of Dec. 31, 2022. It is available only for trips between Jan. 1, 2022 and Dec. 31, 2022, and for expenses of up to $1,000 for individuals and $2,000 for families. That means individuals would receive up to $200, and families would get up to $400.
Accommodation types that qualify include hotels, motels, resorts, lodges, bed and breakfast establishments, cottages, campgrounds, and vacation rental, and the locations must be within Ontario and registered for the Goods and Service Tax (GST)/Harmonized Sales Tax (HST).
Premier Doug Ford's government introduced the temporary Ontario Staycation Tax Credit to "encourage Ontario families to explore the province while helping the tourism and hospitality sectors recover from the financial impacts of the COVID-19 pandemic." The province estimated the credit would be used by 1.85 million families, costing $270 million.
The Tourism Industry Association of Ontario had pushed the province to extend the tax credit through 2023, saying it encouraged domestic visitor spending and supported local economies across the province.
Claimants will have to file detailed receipts to get the credit, which must include the location of the accommodation, the day of the stay, the name of payor, the amount of GST/HST paid and "the amount that can reasonably be considered to be for the accommodation portion of the stay."
Josée Cabral, a senior tax specialist with H&R Block, says it's important to hold on to detailed receipts going into tax season.
"Have those receipts handy. If it's in an email, print it off," Cabral said.
"The most important thing is to always stay organized with your documents. The Staycation Tax Credit is the perfect example of where it helps to stay organized... Tax season is overwhelming, but being organized takes a lot of the stress away."
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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