amount received depends on ON tax otherwise payable
must be claimed by the spouse with higher net
cannot exceed ON tax payable (not refundable)
The tax reduction cannot be claimed by an individual
who was not resident in Canada at the beginning of the year. Thus,
it is not available to new immigrants.
The tax reduction for dependents under age 19 is not
shown on the Ontario TD1
forms, so employees or pensioners will have to provide the employer or
payer with a written request to include such amounts.
The Ontario 2013 Budget
proposes to modify the OTB so that, beginning with 2014 benefits, each
recipient can choose to receive the benefit either monthly or in a single
payment at the end of the benefit year. Tax filers would choose
which option they want when they file their 2013 income tax return in
2014. Those receiving an annual benefit of $360 or less will be paid
in a single payment in July 2014. Others opting for a single payment
would receive the payment for 2014 benefits in June 2015. Those
opting for monthly payments would receive the payments from July 2014
through to June 2015. This change is subject to legislative
As per the Ontario
2011 Budget the Ontario Sales Tax Credit (OSTC),
Ontario Energy and Property Tax Credit (OEPTC), and the Northern Ontario
Energy Credit (NOEC) are combined into the Ontario
Trillium Benefit (OTB), which will make monthly payments to eligible
recipients beginning 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."
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.
rent or property tax was paid by or for you for 2012,
you lived in a student residence or in a long-term
care home, or
you lived on a reserve and energy costs were paid
by or for you.
Most people don't seem to realize that the 2012 tax
return is used to calculate their 2013 tax credits, which will
be paid out in advance and monthly starting in July. Under the
old system, these credits would not be received until the 2013
tax return was filed in 2014.
Many people have said they would like the choice of
receiving these refundable tax credits either as monthly payments
throughout the year or as a single payment after the year has
ended. In the Ontario 2012 Budget,
it is stated that in the coming year, the government will look at
options for giving people that choice starting next year.
Tax Tip: File a tax
return even if you have no income, to get the refundable tax
Prior Refundable Tax Credits
Ontario Energy and Property Tax Credit (being replaced
The Ontario 2010 Budget proposed to convert the Property Tax Credit to
the Energy and Property Tax Credit, which would be paid quarterly like the
Sales Tax Credit, beginning in 2011, based on 2010 tax returns.
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
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site to your best advantage.
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