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Due to this, you may have received an OTB notice in the mail. What exactly is OTB, though? Well, OTB stands for the Ontario Trillium Benefit.
The Ontario Trillium Benefit program actually includes 3 different refundable tax credits. These benefits include the Northern Ontario Energy Credit, Ontario Energy and Property Tax Credit, and the Ontario Sales Tax Credit, not the Ontario Trillium Drug Benefit. If you live in Ontario, there are plenty of reasons that you may have received an OTB notice related to one or all of these benefits.
Who Receives the Ontario Trillium Benefit
As we mentioned above, the Ontario Trillium Benefit consists of three tax credits and is available to eligible Ontario residents. In order to start receiving OTB payments, you need to qualify for at least one of these credits. Let’s take a look at these different Ontario tax credits and who can qualify.
Northern Ontario Energy Credit
This credit is specifically for those who live in Northern Ontario. It helps those with low-to-moderate incomes who have high home energy costs. However, in order to qualify for this credit, you must meet the OTB eligibility criteria. These include:
- Being at least 18 years of age
- Having, or have previously had, a spouse or were in a common-law relationship
- Being a parent who lives with or has previously lived with a child
You must also have met at least one of these conditions in the previous year:
- Paid property tax or rent for your principal residence in Ontario
- Lived on a reserve in northern Ontario and paid the energy bills
- Lived in a long-term care home in Northern Ontario and paid for a portion of your accommodations
Ontario Energy and Property Tax Credit
The Ontario Energy and Property Tax Credit is available to everyone in Ontario; however, you do have to apply for it. Even if you don’t currently live in Ontario, as long as you live in a designated Ontario University, College or Private School residence located in Ontario, you may also apply.
In order to be eligible for this credit, you must meet the same requirements as for the Northern Ontario Energy Credit. The purpose of this credit is to help those who have low to moderate-income Ontario residents by providing this tax-free payment that covers sales tax on energy costs as well as property taxes.
Ontario Sale Tax Credit
The Ontario Sales Tax Credit is just what it sounds like. It’s meant for low- to moderate-income residents and provides them with tax-free payment to relieve the cost of sales tax. However, in order to get approved, you must meet the following eligibility requirements:
- You must be at least 19 years of age
- You must have or have had a spouse or common-law partner
- You must be a parent who lives with or has previously lived with their dependent child
How Much are the Ontario Trillium Benefit Payments
When it comes to the Ontario Trillium Benefit payments, how much you receive each benefit year is based on your individual situation. Let’s take a look at the different amounts you could get. Keep in mind that the minimum OTB payment you can get is $10.
With the Northern Ontario Energy Credit, you can receive two different amounts. A single person can receive up to a maximum of $180. A family of 4 could receive up to a maximum of $277. However, you can always receive more money if you’re approved for more than one credit.
When it comes to the Ontario Energy and Property Tax Credit, what you receive is based on your age as well as where you live. Those between the ages of 18 and 64 can receive up to $1,248, and those 65 and over can receive up to $1,421. If you lived in a public long-term care home or on a reserve, you could get up to $277. For those who live in college, university, or private school residences, you can get $25. While the name can be deceiving, you don’t have to pay property taxes to get this credit.
For the Ontario Sales Tax Credit, the payment amounts for those eligible can go up to $360. You may be eligible for another $360 if you have a spouse or common-law partner. You could also receive an additional $360 for each child who is under 19 years old on the first of the payment month.
OTB Payment Dates
Even though these payments are for the province of Ontario, the payments are administered by the Canada Revenue Agency. Since OTB payments are monthly payments you’ll receive for the year, not just a single monthly payment, here is a list of 2024 payment dates for all of the Ontario Trillium Benefit Credits to be directly deposited into your account. The dates are all around the 10th of each month but will vary depending on weekends and statutory holidays.
It’s important to keep in mind that you don’t have to take the monthly payments. You can choose to get one lump sum payment instead that would be direct deposited into your account in July 2025. If you choose to get the one payment instead, then you don’t have to worry about these payment dates. No matter which option you choose, though, the payment will be labelled on your account statement as Canada PRO Deposit.
- January 10, 2024
- February 9, 2024
- March 8, 2024
- April 10, 2024
- May 10, 2024
- June 10, 2024
- July 10, 2024
- August 9, 2024
- September 10, 2024
- October 10, 2024
- November 8, 2024
- December 10, 2024
How To Apply for the Ontario Trillium Benefit
In order to receive benefit payments through the OTB program, you must file your personal income tax and benefit return, even if you don’t have any income to report. When you complete your annual return, you must include the ON-BEN application form with your tax return package.
Once you’ve completed this and submitted it, the Canada Revenue Agency will determine if you’re eligible for the credit or not. To ensure you receive your credits on time, though, you must complete your annual return by the tax deadline of April 30. Keep in mind that only one spouse can apply for the Ontario Trillium Benefit.
Notice of Amount Owing for the OTB
If you received a notice from the CRA stating that you owe money regarding the Ontario Trillium Benefit, this is because you were overpaid. Because of this, the government is now requiring repayment for the amounts you received but weren’t owed. Even if these amounts aren’t paid back, they will be taken off of any future refunds or tax returns that you may receive.
OTB Tax Refund
Depending on your financial situation, you can receive your Ontario Trillium Benefits in the form of an income tax refund. It really just depends on whether or not your financial situation has changed and based on your annual tax return. That said, it is unlikely you will receive a tax refund on OTB benefits since they’re based on the tax year once you file.
Ontario Trillium Benefit Letter
There are plenty of reasons you could receive OTB notices. How you receive it is based on the type of correspondence you prefer from the federal government. These methods include email and paper mail.
As long as you receive one of the three OTB benefits, you could receive an OTB benefit payments notice. It will be sent to you if your benefit payment amounts have changed, if you need to make changes to your personal information, if you need to make an OTB repayment, or for any other reason.
If, for any reason, the federal government needs to verify any information with you on behalf of the Ontario government, then they will get ahold of you with an OTB notice. That said, you can also find this information on your CRA account online.
Other Benefits You Can Get In Ontario
The Ontario Trillium Benefit (OTB) isn’t the only benefit that you can qualify for in Ontario. There are other benefits available to Ontario residents through the Canada Revenue Agency. Let’s take a look at some of these other tax credits.
Low-Income Workers Tax Credit
In Ontario, the Low-Income Workers Tax Credit is a non-refundable tax credit that can be used to reduce or even eliminate your provincial income tax. That said, in order to receive this, you have to qualify. Here are the requirements:
- You must be a resident of any province or territory at the start of the tax year.
- By the end of the tax year, you must live in Ontario.
- You have to be employed.
- You must have to pay Ontario income tax.
- Your annual income must be below $50,000.
- Your annual household income must be below $82,500.
- You can’t have spent more than 6 months in prison.
You have to claim this tax credit when you’re filing your annual income tax return. On your return, this credit is called the Low-Income Individuals and Families Tax Credit. Keep in mind, though, that you will still have to pay Ontario Health Premiums.
Ontario Tax Reduction
The Ontario Tax Reduction is another program that can reduce or eliminate the income tax that you pay in Ontario. That said, in order to qualify, you will have to meet the following requirements:
- As of January 1 of the tax year, you have to be a Canadian resident. You must be living in Ontario by December 31 of the same year.
- You can claim for each child under the age of 18. You can also claim for a dependant who has a mental or physical impairment.
When it comes to your family status, there are some stipulations on who can apply. When it comes to those who have a spouse, the person with the higher income can apply. In the event of a separation or divorce, the person who receives the Canada Child Benefit can claim the credit. If both parents receive the credit, then the person gets more with the CCB claims. If the amounts are the same, then the parent with the lower net income will claim it.
When it comes to applying for the credit, though, that's pretty simple. All you do is file the form ON428 along with your annual tax return.
Ontario Child Benefit
With this credit, you can get up to a maximum of $1,680 per year per child if you meet the income requirements. This credit is meant to help with the cost of raising children, and like the other tax credits, it’s a tax-free payment provided multiple times throughout the year.
In order to receive this credit, you must file your annual tax return and be receiving the Canada Child Benefit. From there, the government will be able to see your taxable income and determine if you’re eligible for credit. If you are eligible, it will come as a combined payment with the CCB, not a single payment. Like the other credits, it will be direct deposited into your account. These payments will stay the same no matter what changes throughout the year. That said, future payments will change for the next tax year if your situation changes.
Overview
No matter which province in Canada you live in, there are different government benefits that you could be eligible for to help with living expenses. In Ontario, this is the Ontario Trillium Benefit. Since this benefit is broken into three different categories, it allows more Ontario residents to qualify for the benefit.
However, in order to receive the OTB, you have to file your annual income tax and benefits return. If you want to ensure you receive the benefits on time, then your return should be filed by the income tax deadline.
When it comes to receiving an OTB notice, there are plenty of reasons why this may have happened. The federal government uses these notices to communicate with recipients about any changes or if any information is needed regarding their OTB benefits.
Once you open the notice, you’ll see the reason that the federal government would have sent you the notice. If you need any more information or have any questions regarding the notice, you can contact the CRA directly. If you need help filing for the OTB or figuring out if you’re eligible, then a tax professional can help you.
