How to claim Ontario’s staycation tax credit
Posted Mar 17, 2023 5:31pm ET
Individuals in Ontario who vacationed in the province last year can claim the trip on their upcoming tax returns, and here’s how.
Introduced as a temporary, refundable 2022 personal income tax credit, the Ontario Staycation Tax Credit can be used by families and individuals who have taken a leisurely trip anywhere in the province.
This credit allows Ontario residents to claim 20 percent of their eligible housing expenses between January 1 and December 31, 2022.
“If you traveled for work, that doesn’t count,” H&R Block tax specialist Yannick Lemay previously told CTV News Toronto. “We exclude costs for food, entertainment, gas and any additional expenses, but anything that applies to accommodation while traveling you can claim.”
Those who wish to apply for this loan should have receipts from their lodging stays, Lemay noted.
“It’s going up to $1,000 [for an individual]and it’s a 20 percent credit, meaning Ontario residents can get up to $200 back.”
Families and couples can apply for up to $2,000 and receive a maximum credit of $400.
HOW CAN I APPLY FOR THE STAYCATION TAX CREDIT?
When it comes time to file your income tax and benefit returns for the most recent year, look out for Form ON479, which lists any refundable tax credits Ontario residents may specifically claim.
“Many Ontario credits are calculated on this form, and then the total number of credits calculated on this form goes into the T1 returns of your federal tax return. It goes on line 47900,” Lemay told CTV News Toronto on Friday.
For the Ontario residency tax credit, see Ontario Child Care Access and Expense Relief (CARE) Tax Credit.
WHAT ELIGIBLE EXPENSES CAN I REPORT?
Ontario residents who have stayed less than a month in short-term accommodation in the province may claim expenses against the credit – provided it is a hotel, motel, resort, lodge, bed and breakfast, cottage, a campsite or holiday home is ownership.
Accommodation must have been paid for by either you or your spouse, partner or eligible child.
All receipts for eligible expenses must include location, date of stay, name of purchaser of accommodation and cost. It should also include the amount of taxes you paid for the stay.
If all of these conditions are met, Ontario residents can claim accommodation for one or more trips and spend up to $1,000 as an individual or $2,000 as a family.
WHAT CAN I NOT REQUEST?
Vacations on boats, trains, or “other vehicles that can be self-driving,” the province says, aren’t included in the tax credit. Timeshare agreements are also typically not included.
Regarding travel expenses, Ontario residents cannot claim rental cars, fuel, airfare, groceries, parking, or purchased tickets to visit local attractions. If the trip was also for school or work, it is also not eligible for the Sojourn Tax Credit.
Finally, if the expenses are reimbursed – either by a friend or an employer – the stay cannot be claimed.
May 1st is the deadline for most Canadians to file their tax returns, with June 15th being the deadline for self-employed people.
Ontario’s staycation tax credit can be found underneath the Ontario childcare access and relief from expenses (CARE) tax credit.
SO WHAT ELIGIBLE EXPENSES CAN I CLAIM?
Ontarians who stayed at a short-term accommodation for less than a month in province can claim the expenses through the credit – so long as it is a hotel, motel, resort, lodge, bed-and-breakfast, cottage, campground or vacation rental property.
The accommodation must have either been paid by you, or your spouse, partner, or eligible child.
All of the receipts from the eligible expenses must have the location, the date of stay, the name of who purchased the accommodations, and the cost. It should also have the amount of taxes you paid on the stay.
If all these conditions are met, Ontarians can claim the accommodation of one trip or multiple trips, and can be expensed up to $1,000 as an individual or $2,000 as a family.
WHAT CAN’T I CLAIM?
Vacations on boats, trains, or “other vehicles that can be self-propelled,” the province says, aren’t included with the tax credit. Timeshare agreements are also generally not included.
As for travel expenses, Ontarians cannot claim car rentals, fuel, flights, groceries, parking, or tickets purchased to visit location attractions. If the trip was also for school or work, it also cannot be claimed through the staycation tax credit.
Lastly, if the expenses were reimbursed – either by a friend or an employer – the stay cannot be claimed.
May 1 is the deadline for most Canadians to file their tax returns, with June 15 being the deadline for those who are self-employed.-->