General
- What is the Ontario Sales Tax Transition Benefit (OSTTB)?
- How much are the OSTTB payments?
- When will the OSTTB be paid?
- Is the OSTTB a taxable benefit?
- Will the benefit affect Employment Insurance, social assistance or income-tested benefits?
- Does a special application need to be completed in order to receive the OSTTB payments?
- Who can I call regarding the OSTTB?
Eligibility
- Who is eligible for the OSTTB?
- What criteria are used to determine who is eligible for the OSTTB?
- What are the eligibility requirements for receiving the 2011 OSTTB payment?
- Who is considered to be a single individual?
- Do adult children living in the same household qualify for the individual benefit?
- Who qualifies as a family?
- Who qualifies as a dependent child?
- I filed my 2010 return late. Do I still qualify for the benefit?
- Are there any special rules that apply to new immigrants to Ontario?
Administration
- Who issues the OSTTB payments?
- Will the OSTTB be paid by direct deposit or by cheque?
- How will the CRA determine which parent is the primary caregiver?
- What happens if my marital status changes during the year, in 2011?
Calculation
- Is the OSTTB calculated on gross or net income?
- How will the reduction in OSTTB payments for a single individual be applied?
- How will the reduction in OSTTB payments for a family be applied?
- I am single and my ex-spouse and I share custody of our child. Will I receive the OSTTB payment at the family rate or the single rate?
What is the Ontario Sales Tax Transition Benefit (OSTTB)?
The OSTTB is a one-time temporary relief program designed to help residents of Ontario adjust to the new Harmonized Sales Tax (HST) that took effect on July 1, 2010.
How much are the OSTTB payments?
The maximum benefit amount payable is $300 for single individuals ($100 maximum for each of the three payments) and $1,000 for families ($330 maximum for the first payment and $335 maximum for the second and third payments).
Each benefit payment will be reduced by 5 per cent of a recipient's adjusted family net income for the previous year over $80,000 for single individuals and over $160,000 for families (including single parents).
When will the OSTTB be paid?
Benefit payments were delivered in June and December 2010, and June 2011. Filing your personal income tax return on time was required in order to receive your benefit payments on time. Eligible recipients who file late should receive their OSTTB payment within eight weeks of receiving their Notice of Assessment from the Canada Revenue Agency (CRA).
Is the OSTTB a taxable benefit?
The OSTTB is not a taxable benefit.
Will the benefit affect Employment Insurance, social assistance or income-tested benefits?
The OSTTB does not have any impact on Employment Insurance, social assistance or income-tested benefits.
Does a special application need to be completed in order to receive the OSTTB payments?
A special application is not required. For details, refer to eligibility and filing requirements.
Who can I call regarding the OSTTB?
Enquiries should be directed to the Canada Revenue Agency at 1 877 627-6645.
Who is eligible for the OSTTB?
Tax filers who:
- are age 18 and over,
- are married or in a common-law relationship, or
- live with one or more dependent children under the age of 18, and
are resident in Ontario on the dates specified in Q9, and file an income tax return, may be eligible for the OSTTB.
Remember, to qualify you (and your spouse or common-law partner) must have filed a 2009 income tax return for the payments in 2010, and a 2010 tax return for the payment in 2011.
What criteria will be used to determine who is eligible for the OSTTB?
The CRA uses the information you (and your spouse or common-law partner) provide on your income tax return(s) (or statement of world income, if applicable) and your (and your spouse or common-law partner's) Canada Child Tax Benefit (CCTB) information, if applicable, to determine your eligibility for the OSTTB.
Report to the CRA any changes to your status (e.g., births, death, marriage, separation) that happen after filing your tax return.
Eligibility for the first two 2010 OSTTB payments were determined independently on the specified dates below:
- For the June 2010 payment – CRA looked at your information as of May 31, 2010.
- For the December 2010 payment – CRA looked at your information as of November 30, 2010.
The filing deadline for the 2010 payments has now expired.
For the final June 2011 payment, the CRA will look at your information as of May 31, 2011, however you must meet the following requirements on this date:
- You must be a resident of Ontario
- You must be one of the following:
- 18 years of age or older,
- married or living common law,
- living with someone under the age of 18 who is dependent on you for support
- If you are living with your spouse or common-law partner, only one of you will receive the OSTTB;
- You must not have been incarcerated for a period of 90 days or more that includes the specified date; and
- You must file a 2010 income tax return by June 30, 2012. For details, refer to filing requirements.
What are the eligibility requirements for receiving the 2011 OSTTB payment?
For the June 2011 benefit payment, the eligible recipient must:
- be a resident of Canada on December 31, 2010 and file a 2010 income tax return by June 30, 2012 or if not resident in Canada on December 31, 2010, provide a statement of 2010 world income to CRA, by June 30, 2012; and
- be a resident of Ontario on May 31, 2011.
Who is considered to be a single individual?
You are considered to be a single individual, if you are single, separated, divorced, or widowed, and you are 18 years of age or older and do not live with any dependent children under the age of 18.
If you are married or in a common-law relationship with any dependent children under the age of 18, and your spouse passes away after December 31, 2009, or you are a single parent living with one dependent child under the age of 18, and your child passes away after December 31, 2009, the family rate will continue to apply for your payments following the death.
Do adult children living in the same household qualify for the individual benefit?
Yes, adult children 18 years of age or older who file an income tax return may qualify for the benefit.
Who qualifies as a family?
Married couples or common-law partners (with or without children) and single parents will qualify as families.
Who qualifies as a dependent child?
A dependent child is someone who is under the age of 18, lives with you, is not eligible to receive his or her own benefit payment, and does not have a spouse or common-law partner who is eligible to receive a benefit payment.
I filed my 2010 return late. Do I still qualify for the benefit?
The information provided on your income tax return is used to calculate the OSTTB eligibility and payment amounts. Thus, late filed returns will delay OSTTB eligibility calculations and related payments. You can expect OSTTB payments within eight weeks after you receive your Notice of Assessment(s) from the CRA.
To receive your 2011 OSTTB payment, you must file your 2010 income tax return by June 30, 2012.
Are there any special rules that apply to new immigrants to Ontario?
If you were not a resident of Canada on December 31, 2010 and did not file a 2010 income tax return, you must submit a 2010 statement of world income to the CRA to be eligible for the 2011 OSTTB payment. If you immigrated to Canada during 2010 and filed a 2010 income tax return, the CRA may request additional information to ensure eligibility and benefit amounts are accurately calculated.
You must also meet all other eligibility criteria, including being resident in Ontario on the specified dates.
Who issues the OSTTB payments?
The CRA administers this program and issues the benefit payments on behalf of the Province of Ontario.
Will the OSTTB be paid by direct deposit or by cheque?
If you receive your income tax refund by direct deposit, you will receive your benefit payment by direct deposit. Otherwise, you will receive a cheque.
How will the CRA determine which parent is the primary caregiver?
The first determining factor is which parent receives the federal Canada Child Tax Benefit (CCTB) for the month in which the applicable OSTTB payment will be made. If the child is not registered for the CCTB, or neither parent is eligible for the CCTB, then the determining factor is which claimed the federal Child Tax Credit amount for the child on the previous year's income tax return.
What happens if my marital status changes during the year, in 2011?
Your OSTTB payment amounts may change if your marital status changes on or before May 31, 2011. People who marry, enter a common-law partnership, separate, divorce or become widowed should complete form RC65, Marital Status Change, or inform the CRA of their new status and the date of the change in a letter. Both spouses (common-law partners) should sign the form or letter. Send the completed form or letter to the CRA tax centre in your area.
Is the OSTTB calculated on gross or net income?
The OSTTB is calculated based on the adjusted family net income of the recipient. Adjusted family net income is the sum of your net income (line 236 on your income tax return) and your spouse's or common-law partner's net income with certain adjustments. Adjusted family net income is the definition of income most commonly used to assess eligibility for benefits delivered through the tax system.
How will the reduction in OSTTB payments for a single individual be applied?
A single person with an income of up to $80,000 will receive three benefit payments of $100 totalling $300. The maximum benefit will be reduced by five per cent of adjusted family net income over $80,000. For example, a single person with an income of $81,000 will receive three benefit payments of $50 each. Single individuals with an income over $82,000 will not receive any benefit payments.
How will the reduction in OSTTB payments for a family be applied?
An eligible family (including single parents) with an income of up to $160,000 will receive three benefit payments: one payment of $330 and two payments of $335 totalling $1,000. The maximum benefits will be reduced by five per cent of adjusted family net income over $160,000. For example, a family with income of $163,000 will receive one benefit payment of $180 and two benefit payments of $185 each. Families with income over $166,700 ($166,600 for the June 2010 benefit) will not receive any benefit payments.
I am single and my ex-spouse and I share custody of our child. Will I receive the OSTTB payment at the family rate or the single rate?
The parent who is the primary caregiver of a child on the specified date will receive the OSTTB payment at the family rate. The parent who is the primary caregiver on May 31, 2010 will receive the June 2010 payment at the family rate, the parent who is the primary caregiver on November 30, 2010 will receive the December 2010 payment at the family rate, and the parent who is the primary caregiver on May 31, 2011 will receive the June 2011 payment at the family rate.
The parent who is not the primary caregiver on the specified date will receive an OSTTB payment at the single rate.
