If you are from Ontario and like to take your time and see the province, this piece has some important information for you. Find out more about the Ontario Travel Tax Credit by reading this full post: Where in Canada Can I Claim Travel Costs on My Tax Return?
Credit for Ontario Travel Tax
Ontario is giving a short-term tax credit to encourage people to visit and travel within the province. Without regard to when the payment is made, the tax credit can be used for any trip taken this year. You could get up to $400 from this short-term credit on your income tax when you file your taxes.
The cost of travel can be deducted by anyone who lives in Ontario on December 31, 2023, and files their Personal Income Tax and Benefit Return for that year. This year, people who live in Ontario can get up to 20% of their short-term housing costs back. That could save them up to $400.
This post has a lot of information about the Ontario Travel Tax Credit that you might find useful. Here are all the important details about how to file a claim, how much you can claim, what costs are eligible, and other important details.
What is the travel tax credit in Ontario?
The Ontario Staycation Tax Credit is a new tax credit that started in November 2021 and is available to people who live in Ontario for qualified expenses they spend on their vacation homes in the province from January 1, 2022, to December 31, 2022.
It was put in place to help the tourism and hospitality businesses recover from the financial damage caused by the COVID-19 pandemic and to get people from Ontario to travel outside of the province.
You can get a personal income tax refund equal to 20% of your lodging costs. The most you can get is $1,000 for individuals and $2,000 for families with children, spouses, or common-law partners. To book just a place to stay, that costs $200 or $400.
A Look at the Ontario Travel Tax Credit
| Article Head | Ontario Travel Tax Credit |
| Implemented By | CRA |
| Credit Purpose | To encourage travel and tourism in Ontario province. |
| Credit Amount | Single: $1000Family: $2000 |
| Eligibility | Ontario Resident filling tax returns |
Where in Canada Can I Claim Travel Costs on My Tax Return?
One person per family can only get credit. This is a personal income tax benefit called the Ontario Travel Tax benefit. It can be refunded. That means you can get this tax credit even if you don’t owe any income tax for 2022 if you qualify.
When you’re putting together your T4 and other tax slips for tax season, look through all of your trip receipts from stays in Ontario during the relevant year. You should keep an eye out for Form ON479, which lists all of the refundable tax credits that people in Ontario can claim.
In Ontario, the CARE tax credit grants parents money to help pay for child care and other costs related to a vacation. To get this credit, you need to keep your ticket. The name of the person who paid, the date of the stay, the location of the lodging, the amount paid for the lodging part of the stay, and the GST/HST paid should all be on it.
Expenses that qualify for the Ontario Travel Tax Credit
The credit can be used by Ontario residents who stayed at a hotel, motel, resort, lodge, bed & breakfast, cottage, campground, or vacation rental property for less than a month. It doesn’t matter if it was a hotel, motel, resort, lodge, bed & breakfast, cottage, campground, or vacation rental property. The accommodations had to be paid for by you, your partner, your husband, or your child who qualifies.
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When it comes to trip costs, people from Ontario can’t deduct things like food, gas, car rentals, flights, parking, or tickets to attractions. You also can’t get the staycation tax refund if you went on the trip for work or school.
FAQs
Does it matter if the spouse with the higher income files the claim?
No! The net taxable income of a person doesn’t go down like a tax exemption does. Get your receipts and up to $2,000 in valid family costs ready, and you’ll save $400. It doesn’t matter who claims it.
How do you figure out how much of a Travel Tax Credit you get?
You can get a reward of up to $200 per person or $400 per family. A credit rate of 20% is added to the qualified costs to get the credit.
We hope that the next time you want to visit Ontario, you will think about this tax credit and use the information here.