What is the Ontario Trillium Benefit?

Filing Taxes | What is the Ontario Trillium Benefit?

The Ontario Trillium Benefit (OTB) is a refundable tax credit available to low- and moderate-income residents in Ontario. It combines the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. The annual OTB entitlement is usually divided by 12, and payments are issued monthly.

The province of Ontario is paying for the credits, and the Canada Revenue Agency is in charge of paying them out to people. Direct deposit payments may show up in your account activity as "Canada PRO."

Dates for the payment of Ontario Trillium Benefits in the province of Ontario

It doesn't matter how much money you make, as long as it's more than $360. You can choose to be paid every month or once a year. When you get paid every month, you get your money faster. At the end of the benefit year, you get a single payment. This is when you get your money.

There is no option for you to get paid monthly if your benefit is less than $360. You get paid in July each year for the last 12 months of each year.

Payments of the Ontario Trillium Benefit for 2023 are scheduled for:

  • January 10, 2023
  • February 10, 2023
  • March 10, 2023
  • April 6, 2023
  • May 10, 2023
  • June 9, 2023
  • July 10, 2023
  • August 10, 2023
  • September 8, 2023
  • October 10, 2023
  • November 10, 2023
  • December 8, 2023

The Northern Ontario Energy Credit

The Northern Ontario Energy Credit (NOEC) is designed to help low- to moderate-income Northern Ontario residents with the higher energy costs they face living in the north]. It is part of the Ontario Trillium Benefit and is distinct from the Ontario Energy and Property Tax Credit (OEPTC), which helps low- to moderate-income Ontario residents with sales tax on energy and property taxes.

Eligibility for the 2023 benefit year

On December 31, 2022, you must be a resident of Northern Ontario. Before June 1, 2024, you must have done one or more of the following:

  • people who are at least 18 years old.
  • I have or have had a spouse or common-law partner in the past.
  • A parent who lives or used to live with your child.

Your eligibility also depends on where you live on the 1st of each month, so make sure to check that out too. You can get the November NOEC payment if you live in Sudbury on November 1 and move to London (Southern Ontario) at the end of November. You can't get any more NOEC payments after that, though.

Credit amount

  • If you're single, you can get up to $158.
  • Families could get as much as $243.

The Ontario Energy and Property Credit

The Ontario Energy and Property Tax Credit (OEPTC) is designed to help low- to moderate-income Ontario residents with the sales tax on energy and with property taxes. It is part of the Ontario Trillium Benefit, along with the Ontario Sales Tax Credit (OSTC) and Northern Ontario Energy Credit (NOEC). There have been concerns raised about the OEPTC, such as how it is calculated and its eligibility requirements.

Eligibility for the 2023 benefit year

People who live in Ontario on December 31, 2022, and at least one of the following before June 1, 2024:

  • There must be someone who is at least 18 years old.
  • who is married or has been in a common-law relationship.
  • There must also be a parent who lives with or has lived with your child.

Your eligibility also depends on where you live on the 1st of each month, so make sure to check that out too. Suppose you move out of Ontario on November 10. If you get the OEPTC payment for that month, you won't be able to get any more.

Credit amount

You could get up to:

  • Between 18 and 64 years old, $1,121.
  • People over 65 who live on a reserve or in a public long-term care home pay an extra $1,277 each year.
  • If you live on or near a reserve, the fee is $249.

The Ontario Sales Tax Credit

The Ontario Sales Tax Credit (OSTC) is a program that provides a maximum annual credit of $345 for each adult and each child in a family based on their 2022 income tax and benefit return. It is part of the Ontario Trillium Benefit, which combines the OSTC with the Ontario energy and property tax credit and the Northern Ontario energy credit. Starting in 2014, individuals do not need to apply for the OSTC as the Canada Revenue Agency will use information from their income tax return to calculate it. The OEPTC helps low- to moderate-income Ontario residents with the sales tax on energy and with property taxes.

Eligibility for the 2023 benefit year

At some point before June 1, 2024, you must be a resident of Ontario and have at least one of the following:

  • 19 years of age or older
  • married or in a common-law relationship at the moment or in the past.
  • A parent who lives or used to live with your child.

Credit amount

You can receive up to $345. This credit does not affect how much you owe in GST/HST credits.

You can get an extra credit if you do the following things:

  • The person you live with or are in a relationship with is
  • On the first of each payment month, each dependent child who is under 19 years of age on that date is paid.

Who Can Apply for Trillium Benefits in Ontario, and How?

OEPTC helps low-to middle-income families pay for property taxes as well as GST/HST on electricity. The credit is called the Ontario Energy and Property Tax Credit (OEPTC). If you qualify for either part of this tax credit, you can get it. People who lived in nursing homes, paid energy costs while living on an Ontario reserve, or lived in specially-designed post-secondary school residences in the previous year are eligible for this benefit. To be eligible, you must have paid property tax or rent for your main home in Ontario in the previous tax year.

The Northern Ontario Energy Credit helps low and middle-income families deal with the higher energy costs they face because they live north of where they live now. People who paid property taxes or rent for their main home in Ontario in the previous tax year paid for living expenses for a nursing home, or paid for energy costs while living on a Northern Ontario reserve can get help.

With the help of the Ontario Sales Tax Credit, low-to middle-income families can get back some of the GST and HST that they paid on goods and services during the year. As a result of how much your family made last year, you may be able to get an eligibility-free payment.

The Ontario Trillium Benefit can be claimed even if you don't make any money. You need to file your tax return to get it. You can get the trillium benefits every time you file your tax return. Eligibility is based on how much money your family made in the last tax year. Because of changes in your family's net income, where you live, your age, or your family status, your eligibility may change.

You can fill out the form "ON-BEN", which is an application for the Ontario Trillium Benefit, and the Ontario Senior Homeowners' Property Tax Grant, which must be filled out. There is a way for you to change your tax return if you forget to put in the ON-BEN. You can do this through CRA My Account or by mail. In TurboTax, this form will be filled out as you move through the provincial section of your tax return.

Conclusion

For low-income families in Ontario, Canada, the Ontario Trillium Benefit (OTB) helps them pay for things like electricity and sales tax. It takes three tax credits and puts them all together in one payment. A group called the Canada Revenue Agency is in charge of giving them to people. It is called the Ontario Energy and Property Tax Credit. It helps low-to middle-income families pay their property taxes. If you live with or are in a relationship with someone who is at least 19 years old, you can get an extra credit of up to $345.

There is a benefit called the Ontario Trillium Benefit that can be claimed even if you don't make any money at all. It helps low and middle-income families deal with the higher energy costs they face because they live north of where they live now. The Northern Ontario Energy Credit does this by giving them money back. In order to be eligible, you have to have made enough money for your family last year.

Written By:
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

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