We have been in the pandemic since early 2021 and going into 2022 there seems to be no end to it.
Everyone has been impacted by it one way or another. Business have been hit hard with all the lockdowns and people switching to ordering online from the comfort of our own homes. Online shopping has seen an exponential growth over this period.
Tourism industry has been hit hard with people staying put to protect themselves and ensuring we try to stop the spread of this virus.
Realising the toll this pandemic has had on the tourism industry, the Ontario government has decided to offer a staycation tax credit for all residents of Ontario to encourage people to help the local business who rely on people visiting their establishments.
Staycation tax credit came into effective on January 1, 2022 and will be available until the end of the year. Staycation tax credit will reimburse 20% of accommodation expenses for up to $1,000 for individuals or $2,000 per family. This translates to a maximum credit of $200 for individuals or $400 for a family.
Staycation Tax Credit
The staycation tax credit will be eligible if the following conditions are met:
- Stay must be between Jan 1, 2022 to Dec 31, 2022.
- Paid by Ontario tax filer, their spouse, common-law partner, or eligible child
- Expense has not been reimbursed to the Ontario tax filer, their spouse, common-law partner, or eligible child
- Expense incurred for leisure
- Expense is subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST)
To claim this tax credit you will have to save all the receipts and claim this tax credit when submitting your 2022 Tax Return.
This tax credit is expected to encourage people to enjoy local attractions and in turn help the local tourism industry. People who would otherwise not travel locally may now have an incentive to take advantage of all that Ontario has to offer.
