Ontarians who vacationed in the province last year can claim the trip on their next tax returns, and here’s how to do it.
Introduced as a temporary, refundable personal income tax credit for 2022, the Ontario Sojourn Tax Credit can be used by families and individuals who have taken a leisure trip somewhere within the province.
Through this credit, Ontarians can claim 20 percent of their eligible lodging expenses between January 1 and December 31, 2022.
“If you traveled for work, that wouldn’t count,” H&R Block tax specialist Yannick Lemay previously told CTV News Toronto. “We are excluding the costs of food, entertainment, gas and all additional expenses, but anything related to travel accommodation, you can claim.”
Those looking to apply for this credit must have receipts for their lodging stays, Lemay said.
“It’s up to $1,000 [for an individual]and it’s a 20 percent rate credit, which means Ontarians can get up to $200 back.”
Families and couples can claim up to $2,000 and get a maximum credit of $400.
HOW CAN I CLAIM THE STAYCATION TAX CREDIT?
When it’s time to file your income tax return and benefits for last year, keep your eyes peeled for form ON479which lists all the refundable tax credits that Ontarians can specifically claim.
“Many Ontario credits are calculated on this form, and then the total credits calculated on this form go to T1 returns on your federal tax return. It goes on line 47900,” Lemay told CTV News Toronto on Friday.
Ontario Sojourn Tax Credit it can be found under the Ontario Child Care Access and Expense Relief (CARE) Tax Credit.
WHAT ELIGIBLE EXPENSES CAN I CLAIM?
Ontarians who stayed in short-term accommodation for less than a month in the province can claim expenses through the credit, as long as it is a hotel, motel, resort, inn, bed and breakfast, cabin , camp or vacation rental. property.
Accommodation must have been paid for by you or your eligible spouse, partner or child.
All receipts for eligible expenses must have the location, date of stay, name of who purchased the accommodation, and cost. You must also have the amount of tax you paid on the stay.
If all of these conditions are met, Ontarians can claim lodging for one or more trips, spending up to $1,000 as an individual or $2,000 as a family.
WHAT CAN I NOT CLAIM?
Holidays on boats, trains or “other vehicles capable of being self-propelled”, says the province, are not included in the tax credit. Timeshare agreements are generally also not included.
For travel expenses, Ontarians cannot claim car rentals, gas, flights, groceries, parking, or tickets purchased to visit on-site attractions. If the trip was also for school or work, it also cannot be claimed through the stay tax credit.
Finally, if the expenses were reimbursed, either by a friend or by 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.