In our last blog we talked about the Ontario Trillium Benefit and the three credits that can be received as part of your monthly payment - the Northern Ontario Energy Credit, the Ontario Energy and Property Tax Credit and the Ontario Sales Tax Credit.
Once you understand the credits that make up the Ontario Trillium Benefit (OTB) it is time to find out how the OTB is paid out.
How to Apply for the Ontario Trillium Benefit
Each year, to apply for the Ontario Trillium Benefit you must file your previous years personal income tax return. To ensure you start receiving your OTB payments as of July, you must have your tax return filed on time. Otherwise, you will not receive any payments until your return is filed.
It is important to remember that even if you do not owe any taxes, or you have zero taxable income, you may still be eligible for these benefits (and are more likely to qualify), so it is important that you file your return.
Using the information included on your tax return, the government of Ontario will determine your eligibility for each credit.
Once eligibility has been determined, you will begin receiving your payments as of July 10, or on the payment date following the assessment of your tax return if you file after OTB payments begin.
How Much You Will Receive
The amount received by each individual or family depends on a number of factors, including age, income, residence, family size and amounts paid for rent or property tax.
The maximum amount for each credit are as follows:
Northern Ontario Energy Credit
Individual - $151
Families - $232
Ontario Energy and Property Tax Credit
18 and 64 years old - $1,043
Over 65 years old - $1,187
Live on a reserve - $232
Live in public long-term care - $232
Lived in residence $25
Ontario Sales Tax Credit
Individual - $301
Family - $301 for each member who meets the eligibility criteria
How the OTB is Paid Out
Once eligibility has been determined and your OTB amount has been calculated it is time to receive credit.
The OTB is received by taxpayers on the 10th of every month, starting in July and ending in June of the following year. If you receive your income tax refunds by direct deposit, your OTB will be deposited in that same account. Otherwise you will be mailed a cheque for your credit.
In most cases, the payment will be made as a monthly instalment. There are however certain instances in which the payment will be made in one lump sum.
If you are receiving $360 or less, you will receive a lump sum payment on July 10. In addition, you can opt for a single payment of OTB when you file your tax return. In this case, however, the lump sum payment will be paid in June of the following year, at the end of the credit period.
If you are single the payment will be received by the individual filing. If, however, you are married or have a common law partner, only one of you will receive the payment, on behalf of the entire family.
The Ontario Sale Tax Credit portion of the OTB is paid to the person whose tax return is assessed first, whereas the Ontario Energy and Property Tax credit and the Northern Ontario Energy Credit are paid to the person who has applied for the credit when completing Form ON-BEN on your previous years tax return.
It does not matter who receives the payment - it will be the same no matter who applies, or in the case of the sales tax credit, who is first assessed.
For more information of the Ontario Trillium Benefit or for help completing your tax return to ensure you receive and maximize your credit, contact us today.