The Ontario Trillium Benefit is a refundable tax credit
for low income taxpayers. This benefit was created by the Ontario
2011 budget, by combining the previous Ontario Sales Tax Credit (OSTC),
Ontario Energy and Property Tax Credit (OEPTC), and the Northern Ontario
Energy Credit (NOEC). Monthly payments to eligible recipients began
in July 2012. S. 103.2 of the Taxation Act states
that "For July 2012 and subsequent months, an individual is
eligible to be paid an Ontario Trillium Benefit for a month if he or she is resident in Ontario at the beginning of the month."
Many people don't realize that the 2012 tax
return was used to calculate their 2013 tax credits, which began to be
paid out in advance monthly starting in July 2013. Under the
old system, these credits would not be received until the 2013
tax return was filed in 2014.
As per the Ontario 2013 Budget,
the OTB has been modified so that, beginning with 2014 benefits, each
recipient can choose to receive the benefit either monthly in
advance or wait for a year to get single
payment at the end of the benefit year, unless the amount is $360 or less. Tax filers will choose
which option they want when they file their 2013 income tax return in
Trillium Benefit Payment Options for
12 monthly payments starting July 2014
If $360 or less, payment is made in July 2014
If more than $360, payment is made in July 2015
Tax Tip: With an
annual payment over $360 you're getting your money much later!
The Sales Tax Credit portion of the Ontario Trillium
Benefit is applied for by applying for the GST/HST credit on page 1 of
your (or your spouse's or common-law partner's) tax return. For more
information see CRA publication RC4210
- Ontario Sales Tax Credit.