Travelling Local Can Save You Money
So its time to take a vacation. You've had enough and need a break.
Maybe you have some extra money from refinancing your home recently.
Where do you go?
Since 2020, many Canadians have hardly left their homes due to the pandemic and travel restrictions. With many mandates lifted, enjoying all that Canada has to offer has opened up many possibilities. To help you get outside and enjoy some time away from your home, and to help the hospitality industry recover from the impact of such restrictions, the Ontario government has created The Ontario Staycation Tax Credit. (click link to take you direct to the Government site)
Get 20% tax credit (refundable) on accommodations if you stay local in 2022, up to a maximum of $400 for families or $200 for individuals. To get it, you file with your 2022 personal taxes.
What is it?
Ontario residents can claim 20% of their eligible 2022 accommodation expenses, for example, for a stay at a hotel, cottage or campground, when filing their personal Income Tax and Benefit Return for 2022. You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner or eligible children, to get back up to $200 as an individual or $400 as a family.
Only Ontarians can claim this leisure credit between January 1st, 2022 and December 31st, 2022, regardless of when the payment for the stays occurred.
The accommodations must be paid by you or spouse/partner.
Only one individual can claim this credit for the year.
The is for leisure travel/accommodations, not business.
There are more requirements, including what type of accommodations are included and what proof is needed when submitting for the credit.
How to Claim the Credit
You must claim the credit on your personal tax and benefit return for 2022.
Refundable vs Non-Refundable Tax Credits.
Your accountant can explain the details, but I though I should share that this tax credit is a refundable credit, which means even if you dont owe any taxes, you are still eligible. Whereas a non-refundable tax credit will only reduce any taxes that you owe to zero.
If you are looking for ways to get away, afford a vacation, and all things mortgage, just give me a call.
Enjoy your staycation!