If you are travelling in Ontario this year, be sure to keep track of your accommodation expenses as they can help you reduce your taxes.
For 2022 Ontario has introduced a tax credit up to 20% of your accommodation expenses for stays in a hotel, campground, and/or cottage.
WHAT CAN YOU CLAIM:
You can claim up to:
- $1,000 of expenses for an individual (Maximum $200 tax credit)
- $2,000 as a family (spouse, common-law partner, or eligible children) (Maximum $400 tax credit)
To claim the credit, you must be an Ontario resident on December 31, 2022.
The eligible expenses from the Ontario Government website are explained below:
You can claim the Ontario Staycation Tax Credit for accommodation expenses for a leisure stay of less than a month in Ontario, at a short-term accommodation or camping accommodation, such as a:
- bed-and-breakfast establishment
- vacation rental property
The tax credit only applies to leisure stays between January 1, 2022, and December 31, 2022, regardless of the timing of payment for the stays.
The accommodation expenses must have been paid by you, your spouse or common-law partner, or your eligible child, as set out on a detailed receipt provided by a supplier registered for the Goods and Services Tax (GST)/Harmonized Sales Tax (HST).
As long as all other conditions are met, you can claim any of the following expenses:
- accommodation for a single trip or multiple trips, up to the maximum expense limit of $1,000 as an individual or $2,000 as a family
- accommodations booked either directly with the accommodation provider or through an online accommodation platform
- the portion of the expense that is necessary to have access to the accommodation
- the accommodation portion of a tour package expense
You must keep your detailed receipts for any eligible expenses you claim for the credit. Those receipts must include:
- the location of the accommodation
- the amount that can reasonably be considered to be for the accommodation portion of a stay
- the amount of any GST/HST paid
- the date of the stay
- the name of the payor
2022 INCOME TAX RETURN
Keep your receipts, and you can claim the credit when you complete your 2022 income tax return.
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