Vacation Tax Credit 2022

  • by admin
  • November 6, 2021

Restrictions related to COVID-19 are relaxing. Are you planning for your vacation in 2022? Honorable Doug Ford government has announced good news for you. A 20% staycation tax credit for your vacation accommodation.

 

The government of Ontario has announced its plan for a new, temporary Ontario Staycation Tax Credit for the 2022 tax year. This is an individual income tax credit that allows Ontario residents to claim 20 percent of eligible 2022 accommodation expenses for a maximum of $1,000 for an individual and $2,000 for a family. The maximum tax credit an individual can claim is $200 or a family $400 on their 2022 individual income tax and benefit return.

This is a refundable tax credit which means the credit amount will be given to you as an income tax refund if you have no taxes payable.

You have to spend this money in Ontario.

To claim this tax credit as an eligible accommodation expense, the following conditions apply:

  • Your stay should be less than a month at an eligible accommodation. An eligible accommodation will include a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage, or campground in Ontario;
  • Your eligible stay should be between January 1 and December 31 of 2022;
  • You incurred for personal pleasure, not for your business;
  • Paid by the individual, their spouse or common-law partner, or their eligible child and filing an income tax return as a resident of Ontario;
  • Not reimbursed to you or your family by a friend or your employer;
  • Your eligible accommodation is subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST) in Ontario.

Your eligible accommodation expense is limited to $1000.00 for an individual and $2,000.00 for a family. You may spend any amount within this limit and claim 20% as a tax credit. Your accommodation tax receipt for the eligible accommodation expense must set out the details like your name and address and show the GST/HST amount. You should keep your receipt if in case CRA asks you to provide it.

Disclaimer: Information in the blog/post/article has been presented for a broad and simple understanding. This is not legal advice. RKB Accounting & Tax Services does not accept any liability for its application in any real situations. You need to contact your accountant or us for further information.

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