Last Updated on 9 months by Anoob P T
Are you eligible for Ontario Trillium Benefit? Here is everything you need to know about Ontario Trillium Benefit: Eligibility, Tax Credit, How to Apply.
Table of Contents
What is Ontario Trillium Benefit (OTB)?
The Ontario Trillium Benefit is a refundable tax credit given in order to assist lo-income and moderate-income families.
It three tax credits used for OTB include Ontario Sales Tax Credit (OSTC), Ontario Energy and Property Tax Credit (OEPTC), and Northern Ontario Energy Credit (NOEC). They are combined in to a single payment that is issued monthly or once in every year.
The Ontario Budget of 2011 decided to create this benefit combining these three tax credits for the low-income as well as the moderate-income sections of the society.
Initially, it was decided to be conducted as monthly payments from July 2012. However, in the Ontario Budget of 2013, OTB was modified and it was decided to pay the recipient either monthly or annually as per his/her choice.
This was put into effect from July 2014.
The Ontario Trillium Benefit is funded by the Canada government and administered by the Canada Revenue Agency.
The eligibility for this credit is assessed by whether you are qualified for any one of the credits among Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit and Northern Ontario Energy Credit.
Am I Eligible for Ontario Trillium Benefit?
In order to be eligible for OTB, you have to be eligible for any of the mentioned three credits. The eligibility requirements are different for each of the credits.
Ontario Sales Tax Credit
Ontario Sales Tax Credit is intended to balance the sales tax paid on goods and services. To be eligible for this credit,
- 19 years of age or older
- Married, in a common-law relationship, or divorced
- Be a parent who lives or have previously lived with your child
You need not apply for Ontario Sales Tax Credit. It is done according to your previous income tax return and CRA automatically assesses. After the necessary evaluation, you will be notified about whether you are eligible or not.
Ontario Energy and Property Tax Credit
This credit helps low-income or moderate-income people of Ontario to offset property tax payments and the sales tax paid on energy.
The eligibility required for this credit are:
- You must be at least 18 years of age or older.
- Lived in Ontario on December 31 of the previous year.
- Paid property tax or rent for your main residence, or
- Paid accommodation costs for living in a nursing home, or
- Paid energy costs while living on a reserve, or
- Lived in a designated university, college, or in private school residence in the previous year
Northern Ontario Energy Credit
This credit is given to low-income and moderate-income families to offset the higher cost of energy in the North.
To be eligible, you must have either:
- Paid property tax or rent for your main residence
- Paid accommodation costs for living in a nursing home
- Paid energy costs while living on a reserve
How to apply for the Ontario Trillium Benefit?
In order to be considered for OTB, you will have to file your income tax return for the previous year. This is also applicable to people who do not have any income to report.
For Ontario Sales Tax Credit, you need not apply separately. It is done according to your previous income tax return and CRA automatically assesses. After the necessary evaluation, you will be notified about whether you are eligible or not.
For the Northern Ontario Energy Credit (NOEC) and Ontario Energy Property Tax Credit (OEPTC), you must complete Form ON-BEN (Application for the Ontario Trillium Benefit and the Ontario Senior Homeowners’ Property Tax Credit) along with your previous years’ tax return. The eligibility requirements for both these credits should be met on the first day of the payment month.
You have to apply for trillium benefit on every year. Your eligibility depends on various factors like your family net income, your place of residence, your age or your family status, which needs to be updated every year.
What is the Maximum Income to Qualify for Ontario Trillium Benefit?
The maximum income you earn via OTB depends on your eligibility in each of the three credits. The payment of each credit is different and need to meet carrying requirements.
Ontario Sales Tax Credit
The maximum OSTC amount per adult and child is $313. The amount you receive is reduced by 4% if you household net income is over $24,115 (for singles with no children) or over $30,143 (for parents).
Ontario Energy and Property Tax Credit (OEPTC) Amount
The maximum OEPTC amount depends on the age of the person. The different age groups and the amount are:
- $1,085 for individuals between 18 and 64 years old. This is made up of $241 for energy costs and $844 for property taxes.
- $1,236 for seniors (65 years and older). This is made up of $241 for energy costs and $995 for property taxes.
- $241 for individuals living on a reserve or nursing home.
- $25 for students living in a designated college, university or private school residence.
Northern Ontario Energy Credit (NOEC) Amount
The maximum NOEC in 2020 is $157 for single individuals with no children and $241 for families. The credit amount is reduced by 1% of your adjusted net income exceeding $42,201 (for singles) or $54,258 (for families).
How Often is Ontario Trillium Benefit Paid?
The payment for a year starts in the month of July. It is issued by the Canada Revenue Agency and are typically paid via direct deposit. You can enter your bank details for direct deposit using the CRA MyAccount service. You can also receive a cheque on your address, if there is no direct deposit.
The payment amount of Ontario Trillium Benefit is made usually on the 10th of every month. The recipient can choose to get paid monthly or yearly. However, there are certain limitations for the payment to be monthly or yearly.
If your annual OTB benefit is $360 or less, it will be paid in one lump-sum payment in July 2020.
If your annual OTB benefit is more than $360, you can choose to have your benefit paid out in one single payment at the end of the benefit year.
If your OTB benefit amount is $2 or less, you do not receive a payment.
If your trillium benefit is more than $2, but less than $10, then it is increased to $10.
Recommended Reads
