Like you, we were so excited about the Refundable Staycation Tax Credit, that the province of Ontario implemented for 2022 and don’t want you to miss the opportunity to take advantage of the credit from your last getaway! It was such a nice recognition for using your hard-earned vacation time and money on the Ontario cottage rental experiences, that you’ve come to know and love.
But, what does this mean? And, how can you benefit? We’re here to help!
HST
Beginning July 1st, 2021, HST was applied to all cottage rentals reserved through an online platform. Unfortunately, this meant, the price was likely bumped up by at least 13% over the same cottage vacation in 2020.
If you booked early in 2021, this probably didn’t affect you, however, like many other Ontarians, you’re now seeing the new reality of cottage rentals with HST.
But, for 2022, the Ontario government announced that when you enjoy a Staycation in Ontario, you will be eligible for the Refundable Staycation Tax Credit of up to 20%!
What does Refundable Staycation Tax Credit mean?
When you booked your vacation through CLRM, you will have paid HST (a requirement to be eligible for this tax credit). We also provided you with a receipt with the Lead Guests’ name and address.
Now that the 2022 Tax Season is upon us and you (the Lead Guest) file your taxes, be sure to include the receipt from CLRM.
You will then receive a 20% refund on your taxes from your Ontario cottage rental vacation (to a maximum of $400 for a family). It really is that simple!
Still not sure what a Refundable Tax Credit is?
When you file your taxes, the refundable and non-refundable tax credits get subtracted from the income you’ve earned.
You will not receive any sort of payment for a non-refundable tax credit. However, for a refundable tax credit (such as Ontario’s Staycation Tax Credit), if the credit exceeds the amount of taxes you owe, you will receive the difference as a paid refund.
But what does this all mean? In essence, if the refundable credit exceeds the amount you owe at tax time, the difference will be paid to you!
We Want to Help
So, to be eligible for this exciting new tax credit, all you needed to do was go on vacation in Ontario!
While the credit has now come to an end, there are still plenty of memories to be made and lots of places to visit. Let us help you find the cottage of your dreams!
Bringing 4 little ones? No problem!
Have 2 big dogs? We love dogs!
Need a place with two kitchens? We have what you’re looking for!
Check out CLRM today & let us help you plan your 2023 staycation!
