- Am I eligible to receive the Ontario Sales Tax Credit?
- How much am I eligible to receive?
- How do I apply for the Ontario Sales Tax Credit?
- If I'm married or have a common-law partner which one of us should apply for the Ontario Sales Tax Credit?
- When will I receive my Ontario Sales Tax Credit payments?
- I share custody of my dependent child(ren) with my former spouse/common-law partner. How is the payment determined?
Am I eligible to receive the Ontario Sales Tax Credit?
The eligibility rules for the Ontario Sales Tax Credit are the same as those for the GST/HST credit. You must however be a resident of Ontario on the first day of the issuance quarter to receive a payment. This means that you must be a resident of Ontario on July 1 to receive the August payment, October 1 to receive the November payment, January 1 to receive the February payment, and April 1 to receive the May payment. In addition, one of the following must apply:
- you are 19 years of age or older
- you have (or previously had) a spouse or common-law partner, or
- you are (or previously were) a parent and live (or previously lived) with your child
How much am I eligible to receive?
You may be eligible for the Ontario Sales Tax Credit for 2011 of up to $265 per year. You may also be eligible for an additional credit of up to $265 for:
- your spouse or common-law partner, and
- each dependent child under 19 years of age on the first day of the issuance quarter
The amount you will receive depends on the size of your family and your adjusted family net income. The 2011 income thresholds for the credit will be $20,360 for single people and $25,450 for couples and single parents. The credit will be reduced by 4% of adjusted family net income over these thresholds.
How do I apply for the Ontario Sales Tax Credit?
You must file a 2010 personal income tax return to be eligible for the Ontario Sales Tax Credit for 2011. The information you give on your 2010 return will determine the amount of the credit you will get starting in August 2011. You may be eligible for the Ontario Sales Tax Credit even if you do not owe any income tax, so you should file your 2010 return promptly to ensure timely payment of the credit.
To apply for the Ontario Sales Tax Credit for 2011, answer yes on your 2010 personal income tax return to the question "Are you applying for the GST/HST credit or the Ontario Sales Tax (OST) credit?" found on page 1.
If I'm married or have a common-law partner which one of us should apply for the Ontario Sales Tax Credit?
If you are married or have a common-law partner, only one of you can apply for the credit for the family. The credit will be the same regardless of which one of you applies. If you both apply, the credit will be paid to the one whose return is assessed first.
Only one person can claim the tax credit for a dependent child. The parent who is the primary caregiver at the applicable time will receive the credit for the child for that quarter. This means that the parent who is the primary caregiver on July 1 will receive the August payment, the parent who is the primary caregiver on October 1 will receive the November payment, the parent who is the primary caregiver on January 1 will receive the February payment, and the parent who is the primary caregiver on April 1 will receive the May payment.
When will I receive my Ontario Sales Tax Credit payments?
The credit is a non-taxable quarterly payment that will be issued separately from the GST/HST credit payments. To provide more timely assistance, the Ontario Sales Tax Credit will provide advance payments and will be issued quarterly, in August, November, February and May of each year.
If you receive your income tax refund by direct deposit, you will also receive your Ontario Sales Tax Credit payments by direct deposit. Otherwise, you will receive a cheque.
Effective July 2012 and for subsequent years, payments of the Ontario Sales Tax Credit, the Northern Ontario Energy Credit and the Ontario Energy and Property Tax Credit will be combined into a single benefit payment called the Ontario Trillium Benefit and delivered on a monthly basis.
I share custody of my dependent child(ren) with my former spouse/common-law partner. How is the payment determined?
For shared-custody parents who:
- are not living together as spouses or common-law partners,
- reside with the dependent child(ren) on an equal or near-equal basis, and
- primarily take responsibility for the care of the dependent child(ren) when residing with the dependent child(ren),
the payment for 2011 is calculated and paid in equal quarterly amounts to both shared-custody parents. Effective July 2012 and for subsequent years, the payment will form part of the Ontario Trillium Benefit and will be calculated and paid in equal monthly amounts to both shared-custody parents.
