Refundable Tax Credits in Ontario – Eligibility and Application Process
Ontario provides several refundable tax credits to eligible taxpayers. Refundable tax credits are tax credits that can be claimed even if the taxpayer does not owe any tax. Instead, the credits are paid out as cash refunds to eligible taxpayers.
GST/HST Rebate in Ontario
The GST/HST rebate in Ontario is a program that provides financial relief to eligible low-income families and individuals to help offset the cost of the federal portion of the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST).
The rebate is available to individuals and families with a low income and includes two components: the GST/HST credit and the Ontario Trillium Benefit.
The GST/HST credit is a tax-free quarterly payment from the federal government that is intended to help low-income families and individuals with the cost of the GST or HST. The amount of the credit is based on the individual’s income, family size, and the number of children under 18 years old in the family.
Ontario Trillium Benefit
The Ontario Trillium Benefit is a refundable tax credit that includes the GST/HST credit, as well as the Ontario Sales Tax Credit and the Ontario Energy and Property Tax Credit. The amount of the credit is also based on the individual’s income, family size, and the number of children under 18 years old in the family.
To be eligible for the GST/HST rebate in Ontario, individuals must file their taxes each year and meet certain income requirements. The exact eligibility requirements and benefit amounts may vary from year to year, so it’s important to check with the Canada Revenue Agency or a tax professional for up-to-date information.
Ontario Child Benefit (OCB): The OCB is a tax-free monthly payment to eligible families to help with the cost of raising children. The amount of the benefit is based on family income and the number of children in the family.
Healthy Homes Renovation Tax Credit (HHRTC): This tax credit is intended to help seniors and people with disabilities make their homes safer and more accessible. The credit covers up to 15% of eligible expenses up to a maximum of $10,000 per year.
Ontario Senior Homeowners’ Property Tax Grant: This grant provides financial assistance to eligible seniors to help with the cost of property taxes. The grant amount is based on the senior’s income and the amount of property tax owed.
Ontario Energy and Property Tax Credit (OEPTC): This credit is available to low- to moderate-income families and individuals to help offset the cost of energy and property taxes.
RKB Accounting has expertise in cross-border taxation and has been providing accounting and taxation services for the last fifteen years in Canada and USA. RKB services include incorporating a business on both sides of the border, bookkeeping, sales tax, payroll, and corporate and personal income tax. RKB’s expertise includes cross-border tax planning, long-term tax planning, helping business start-ups, business structure planning, and resolving complex tax matters.