The Ontario Trillium Profit (“OTB”) is a monetary help program offered by the federal government of Ontario to assist lower-income people and households with the prices of vitality, property taxes, and gross sales tax credit. The OTB combines three separate tax credit: the Northern Ontario Power Credit score (“NOEC”), Ontario Power and Property Tax Credit score (“OEPTC”), and Ontario Gross sales Tax Credit score (“OSTC”). By combining these three separate tax credit score parts into one cost, the OTB simplifies receiving these funds for recipients.
Understanding the Three Elements of OTB
As mentioned above, the OTB consists of three part tax credit: the Northern Ontario Power Credit score (NOEC), Ontario Power and Property Tax Credit score (OEPTC), and Ontario Gross sales Tax Credit score (OSTC). Every credit score serves a particular objective and has its personal eligibility standards. To be clear, in the event you obtain an OTB cost, it might be for all three credit (in the event you qualify for all three), or it might be for simply one of many part credit talked about above (since you solely certified for one of many three part credit). This manner, OTB funds are usually not the identical for everybody in Ontario.
How A lot is the OTB cost?
It’s not possible to say how a lot your OTB cost will probably be. That’s like answering how a lot your tax return will probably be. If you wish to learn how a lot precisely you’ll obtain from the OTB tax credit score, you will want to calculate how a lot you obtain for every of the three part credit, as mentioned under. To be clear, how a lot you obtain in your OTB cost will depend on your eligibility and private calculations for all three part credit, together with elements regarding earnings, location, household measurement, relationship and the way a lot you paid in taxes final yr.
Am I Eligible To Get the OTB? (Revenue Threshold)
The OTB doesn’t have a single eligibility or earnings requirement as a result of it combines three completely different advantages. Thus, click on on the hyperlinks to see in the event you can obtain a cost for at the very least one of many three credit score parts talked about earlier to get the OTB:
Right here’s a breakdown of every of the three OTB part credit…
1. Northern Ontario Power Credit score (NOEC)
The NOEC is designed to assist residents of Northern Ontario with larger house vitality prices. This credit score is tax-free and accessible to these residing in particular areas of Northern Ontario, akin to Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Wet River, Sudbury, Thunder Bay, and Timiskaming. To be eligible for the NOEC, people should be a resident of Northern Ontario on December 31 of the earlier yr and meet at the very least one of many following standards:
- 18 years of age or older
- Have or beforehand had a partner or common-law companion
- A dad or mum who lives or beforehand lived with their baby
Calculating your NOEC cost: Use this calculation sheet.
2. Ontario Power and Property Tax Credit score (OEPTC)
The OEPTC is a tax-free cost geared toward serving to Ontario residents with property taxes and gross sales tax on vitality prices. The credit score is damaged down into property tax and gross sales sub-components, and you might solely be eligible for considered one of two.
This credit score is obtainable to residents of Ontario who meet particular eligibility standards primarily based on age, marital standing, and parental standing. To qualify for the OEPTC, people should be residents of Ontario on December 31 of the earlier yr and meet particular age, marital standing, and parental standing necessities.
You could be eligible for the vitality sub-component if:
- you had been a resident of Ontario on December 31, and one of the next situations applies:
- you’ll be 18 years of age or older earlier than June 1 of teh subsequent yr,
- you had a partner or common-law companion on or earlier than December 31 of the yr earlier than
- you’re a dad or mum who lives or beforehand lived along with your baby
You could be eligible for the property tax sub-component if:
- You had been a resident of Ontario on December 31 of the earlier yr, and one of the next situations applies:
- you’ll be 18 years of age or older earlier than June 1 of teh subsequent yr
- you had a partner or common-law companion on or earlier than December 31 of the earlier yr
- you’re a dad or mum who lives or beforehand lived along with your baby
Calculating the OEPTC: Use this calculator.
3. Ontario Gross sales Tax Credit score (OSTC)
The OSTC is designed to assist Ontarians with the gross sales tax they pay on items and companies. This cost is obtainable to all Ontario residents. To qualify for the OSTC, people should be residents of Ontario on December 31 of the earlier yr. The sum of money people obtain for the OSTC will probably be decided by their relationship standing, variety of kids and earnings.
Calculating OSTC: Solely lower-income Ontarians obtain the OSTC. In 2023, if you’re a single particular person with no kids, the credit score will probably be decreased by 4% of your adjusted internet earnings over $24,916. If you’re a single dad or mum or are married or residing in a common-law relationship, the credit score will probably be decreased by 4% of your adjusted household internet earnings over $31,144. Therefore, solely low-income Ontarians obtain this profit. Verify right here for up to date calculations for each new yr.
Making use of for the Ontario Trillium Profit
To use for the OTB, people should file their private earnings tax and profit return and full the ON-BEN Software Kind included of their tax return package deal. The Canada Income Company (CRA) will decide eligibility primarily based on the data offered within the tax return. It’s important to file the tax return even when there is no such thing as a earnings to report.
OTB Fee Strategies and Schedules
The OTB funds are sometimes made by way of direct deposit or by mail. When you obtain your earnings tax refund through direct deposit, your OTB funds will probably be deposited immediately into your checking account. If you don’t use direct deposit in your tax refund, you’ll obtain your OTB funds by mail on or across the tenth of every month.
For the 2023 profit yr, in the event you qualify, that is how you’ll be paid the OTB, relying on how a lot you should obtain:
- Greater than $360, you’ll have a alternative between:
- a. Month-to-month funds beginning July 2023
- b. A single cost in June 2024 (You get the identical complete quantity no matter which possibility you select)
- $360 or much less, you’ll obtain a single cost in July 2023
- Greater than $2 however lower than $10, it will likely be elevated to $10
- $2 or much less, you’ll not obtain a cost
OTB 2023 Fee Dates
| Month | OTB Fee Date |
|---|---|
| January | January 10, 2023 |
| February | February 10, 2023 |
| March | March 10, 2023 |
| April | April 6, 2023 |
| Could | Could 10, 2023 |
| June | June 9, 2023 |
| July | July 10, 2023 |
| August | August 10, 2023 |
| September | September 8, 2023 |
| October | October 10, 2023 |
| November | November 10, 2023 |
| December | December 8, 2023 |
Often Requested Questions
Q: How do I do know if I’m eligible for the OTB cost? You need to meet the eligibility standards for at the very least one of many three tax credit score parts (NOEC, OEPTC, OSTC). Assessment the eligibility necessities for every credit score and file your private Revenue Tax and Profit Return with the ON-BEN Software Kind to test yearly!
Q: What if I file my tax return late? When you file your tax return late, you may nonetheless obtain the OTB cost, however the cost(s) will probably be delayed.
Q: Can I obtain the OTB cost if I’m married or have a common-law companion? Each you and your partner or common-law companion can apply for the OTB cost, however just one will obtain it, and the cost would be the similar regardless of who applies. The OTB cost is made to the individual within the couple whose earnings tax return is assessed first. On this approach, every couple solely will get one cost.
Conclusion
The Ontario Trillium Profit is a monetary help program for lower-income people and households in Ontario. Combining three separate tax credit (NOEC, OEPTC, OSTC) into one cost simplifies the method. When you consider you qualify for the OTB, file your private earnings tax and profit return with the ON-BEN software type in your tax return to use for this cost.
Jeff is a lawyer in Toronto who works for a know-how startup. Jeff is a frequent lecturer on employment regulation and is the creator of an employment regulation textbook and varied commerce journal articles. Jeff is serious about Canadian enterprise, know-how and regulation, and this weblog is his platform to share his views and ideas in these areas.
