Not Staying:  Ontario Staycation Tax Credit

Evelyn Jacks

Be sure to claim the Ontario staycation tax credit on your 2022 tax return because it’s not staying:  the Ontario government announced its demise for future filers last December.  Here’s what you need to know to get it right for 2022:

• Use form Worksheet ON479 line 63052. You must be resident of Ontario as of  December 31, 2022 and filing an Ontario return. Only one person per family makes the claim.
• Here’s what you get:the claim is 20% of qualifying short term accommodation expenses up to a maximum of $1,000 per individual or $2,000 per family.
• The accommodations can include camping spots, but each stay must be less than a month.And, the property must be used exclusively for leisure activities.Qualifying examples are hotels, motels, resorts, cottages, bed and breakfasts, or like vacation rentals.
• Make the claim for yourself, your spouse and/or your or spouse’s dependant child; the child of any other person won’t qualify.Also,the qualifying child must be under 18 or infirm. A child who passed away and otherwise met the criteria will qualify.
• Not eligible:costs for time shares, boats or any other transportation you can live on, groceries, admission fees or medical costs incurred while on vacation (claim those as a medical expense).
• You must keep receipts with the following information:
  • Name of person who paid the expense
  • Dates of the stay and when the receipt was issued
  • Name of accommodation and a description of it
  • How much was paid plus taxes – your lodging provider must be registered for the GST/HST and there must be a business number

• This credit is not claimable if you were bankrupt in 2022

Bottom Line:  It pays to stay up-to-date with provincial tax changes. That’s because the tax filer you are working with today may have had a different province of residence on December 31, 2022.  That’s the date that determines what provincial tax return will be filed.