How to write off your next ‘staycation’ in Ontario during the pandemic

How to write off your next ‘staycation’ in Ontario during the pandemic

The past two years of dealing with the pandemic has been nothing short of exhausting. Between remote work, online learning, health and safety policies, vaccination mandates, and many more – time-off has begun to feel like work, because even when you aren’t working, there is still so much to worry about. We are all looking for an escape but travelling outside of Canada in this current situation seems more strenuous than relaxing.

Beginning in 2022, Ontario has announced an Ontario “Staycation Tax Credit”. This means, that Ontario residents can claim 20% of their ‘staycation’ costs, like hotel stays, while travelling within the province. The purpose of this credit is to encourage people to plan time off, become more familiar with the province, and help the tourism and hospitality industries. So, it has been created to be accessible to everyone. Any Ontario resident (except children) beginning on January 1, 2022, can claim this credit until December 31, 2022.

The expenses you may claim are hotel, cottage, motel, resort, bed-and-breakfasts, or campground stays for short-term visits. Timeshares, vehicle costs, boats, or train expenses cannot be claimed.

There is potential to claim costs up to $2,000 if you’re in a marriage or common-law partnership. If you are an individual who wishes to travel you can claim costs up to $1,000 of your travels. Only one person per family can claim this credit. You may also claim accommodations that were arranged through an accommodation provider, a part of a tour package, or even a part of the purchase to obtain the accommodation.

There are rules that the individual claiming these expenses must follow. This individual or their partner must be the person paying for the expenses, they cannot be planning to be reimbursed for the money by any party (for example, an employer), and this expense must have HST or GST.

If you have questions about vacation time or benefits available to you, please contact KCY at LAW by filling in an online consultation request or contact us by phone at 905-639-0999 to book your consultation today.