TaxTips.ca - Ontario personal tax credits

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Ontario-> Personal tax credits

Non-refundable personal tax credits

For information on the amounts of most non- refundable tax credits available to Ontario residents, see the non-refundable personal tax credits tables.

ON tax reduction

Taxation Act s. 20

	available to low income individuals and families
	amount received depends on ON tax otherwise payable
	must be claimed by the spouse with higher net income
	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.

See Canada Revenue Agency ( CRA) form ON428 from the Ontario General Income Tax and Benefit Package page for detailed calculation.

Refundable tax credits

These are refundable to an individual even if no income tax was paid.

Every individual's situation is different, so check CRA form ON479 from the Ontario General Income Tax and Benefit Package page to see if you qualify for these credits.

Children's Activity Tax Credit

Healthy Homes Renovation Tax Credit

Ontario Trillium Benefit (OTB)

Taxation Act, 2007, Part IV.1

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.

The Energy and Property Tax Credit and Northern Ontario Energy Credit portions of the Ontario Trillium Benefit are applied for by completing CRA Schedule 5006-TG ON-BEN Application for the 2012 Ontario Trillium Benefit and the Ontario Senior Homeowners' Property Tax Grant in the 2011 personal income tax package. You may qualify if, on December 31, 2011, you resided in Ontario, and

	rent or property tax was paid by or for you for 2011,
	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.

Ontario Energy and Property Tax Credit (being replaced by OTB)

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.

Sales and Property Tax Credit

The Ontario 2009 Budget replaced the combined Sales and Property Tax Credit with two separate credits, the Sales Tax Credit and Property Tax Credit.

Ontario Sales Tax Credit (OSTC) (being replaced by OTB)

	tax-free payment of up to $260 annually for each adult and child in low-and middle-income families
	reduced by 4% of adjusted family net income over $20,000 for single people, and over $25,000 for families
	paid quarterly, combined with the GST/HST credit, starting July 2010

Ontario Property Tax Credit (replaced by Energy and Property Tax Credit)

	based on occupancy cost - property tax paid, or 20% of rent paid
	credit of up to $250 for non-seniors or $625 for seniors, plus 10% of occupancy cost
	credit would not exceed occupancy cost, and would be subject to a maximum of $900 for non-seniors and $1,025 for seniors
	adjusted by 2% of adjusted family net income over $20,000 for single people and over $25,000 for families
	refundable, and claimed on the personal income tax return, for the 2010 tax year

Canada Revenue Agency information:

2011 Ontario Energy and Property Tax Credit

Ontario Budget Website information:

Ontario Energy and Property Tax Credit

Ontario Ministry of Revenue information on tax credits

Ontario credits, benefits and incentives.

Prior Refundable Tax Credits

Property Tax Credit (2009 was last year)

	for residents of Ontario who are property owners or renters aged 16+ on December 31 of the tax year
	for rent or property tax paid in Ontario in the year

Sales Tax Credit (2009 was last year)

	for taxpayer & spouse, plus
	each dependent child aged 18 or less

The two credits are combined, and amount received depends on:

	individual or family net income
	amount of rent or property tax paid
	age (under or over 65)

Tax tip: File a tax return even if you have no income, to get the refundable tax credits.

Revised: January 25, 2012

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