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 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.
RKB Accounting has expertise in cross-border taxation and has been providing accounting and taxation services for the last fifteen years in Canada and USA. RKB services include incorporating a business on both sides of the border, bookkeeping, sales tax, payroll, and corporate and personal income tax. RKB’s expertise includes cross-border tax planning, long-term tax planning, helping business start-ups, business structure planning, and resolving complex tax matters. RKB a CPA(Delaware), CA(India), and CIA(USA) has over 25 years of experience in accounting and taxation in dealing with various countries in the world.
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.