Happy New Year 2022 – Ontarians! Now you can receive some money back for your vacations, IF you take them in Ontario. Starting from Jan 1, 2022, you can get a tax credit for taking a vacation in ON. The credit gives Ontario residents, 20% credit, up to $1,000 for individual and $2,000 per family. This means that, for $1,000 spent on short accommodations in ON, you will receive a $200 credit.
Eligible accommodations are:
* Stay of less than a month in hotel, motel, resort, cottage, camping, Bed and Breakfast
* Stay in a calendar year of 2022
* The stay is not for business purposes
* Payment receipt needs to be on the name of an ON tax filer and the payment for the accommodations should not be reimbursed to the tax filer
* The payment should be subject to HST as evident on the receipt
The best part is that the tax credit is a REFUNDABLE credit. This means that as long as the taxpayer, meets the above criteria, they can receive the tax credit as a cheque from the government, even if they don’t owe or paid any tax in the year. The credit will be applied, upon filing of 2022 personal tax return.