By Remitbee - May 24, 2022
Summer is coming, and this calls for another travel idea. Why not? The COVID-19 pandemic has changed every part of our lives, and it's only fair if you want to take a break. Well, good news! Ontario is now offering residents an attractive travel incentive through the Ontario Staycation Tax Credit.
The local government has thought of a way to encourage the people to have a staycation in Ontario and help the local tourism industry rise again after the economic drought brought by the pandemic. With Ontario Staycation Tax Credit, you can claim back 20% of your travel expenses. In short, you'll pay less for your obligation if you travel!
Individuals can apply up to $1,000, and couples have a maximum of $2,000 worth of expenses applicable. That excludes the value it will add to the local tourism of Ontario. So overall, it's a win-win situation for the tourists, locals, and the government.
The program will be effective from January to the last day of December 2022. Everyone is encouraged to grab this rare opportunity to travel around Ontario with a cashback incentive.
Undoubtedly, the Ontario Staycation Tax Credit is all fun, and yadda-yadda as you get to have an inexpensive staycation in Ontario, but firstly, who's eligible to claim the benefits?
According to the local government, any resident of Ontario until December 2022 is eligible to apply for an incentive. So if you just become an official resident within the year, you can claim 20% of your travel expenses around the province.
Only one person for every family can claim, but you may already include your spouse's and children's benefits. Just note that minors, even eligible, can't claim the cash alone. Common-law spouses are also eligible for benefits.
The policy says that 20% of your presented travel expense is claimable. But take note that the benefit is limited to up to 1,000 CAD for individuals. On the other hand, a maximum of 2,000 CAD is available for credit for families.
The government has allotted 270 million CAD, which is beneficial for approximately 1,85 families in Ontario. About $200 is claimable for single persons, while a family can expect up to $400 cashback from their travel expenses.
The policy has limited the eligible expenses to claim the staycation credit. You can claim back expenses from a less-than-a-month staycation in Ontario, which may include the following:
Take note that you can only apply expenses paid by you, your spouse, or anyone in the family. And to prove that, you need to present the proof of payment, invoices being the most common document.
The receipt must include registration for GST (Good and Services Tax) or HST (Harmonized Sales Tax). Be sure that the document presented shows the location, amount, GST/HST amount, date, and the name of the one who paid.
Since they did the project to help the tourism industry recover, it generally won't consider self-propelled accommodation, like boats, cars, etc. Also, a short-term staycation is not applicable for the Ontario Staycation Credit. Other ineligible expenses include:
The staycation credit doesn't also cover other reasons for travel. Say you travelled for medical purposes or academic research, you can't present your expenses for cashback. Again, the program's goal is to promote tourism, so recreation must be the sole purpose of your travel.
How to claim your Staycation Credit?
The best thing about this is that it's easy to claim your Staycation Credit. You can apply for and get back your travel incentive through your taxes. When you file your Income Tax Return, you can attach the needed documents and expect to claim the benefits as a cashback from what you paid for the year. To put it simply, it's like refundable money or overpayment on your tax.
This province is a great place to roam around, and with the Ontario Staycation Tax Credit, there are even more reasons you should travel here. First on the list is the fancy, flavorful food you'll only get to taste in Ontario. Many food festivals are held here every year, especially during the summer. Ontario's wines and beers aren't also things to let pass!
And after digesting the tempting foods in the area, you should put the cultural and adventure destinations next on the list. Whether you love to have fun or are on the nerdy side and prefer fascination, there are a lot of theatres, music festivals, and museums scattered throughout Ontario. You may also try trekking, hiking, ziplines, and other fun activities that may bring even more vibrance to you this summer.
And if you're ever in Ontario and want to send money online, use RemitBee. We're the most convenient way to send money, and we offer the best rates too! Our customer service is top-notch - we're always here to help.