Chapter 8 - Refundable Tax Credits, Benefits and T1 Adjustments

Chapter 8 REFUNDABLE TAX CREDITS, BENEFITS, T1
ADJUSTMENT & PROVINCIAL TAX RATES
Objectives:
Ontario:
Learn more about credits financed by Ontario Govt.;
Complete Ontario tax credit form;
Provincial political contributions;
Labour Sponsored funds;
Other provincial tax and credits; and
Federal:
Federal political contributions;
Climate Action Incentive (CAI)
Refundable medical expenses supplement;
Canada Workers Benefit (CWB)
Educator school supply tax credit
T1Adjustment:
Complete T1Adjustment in case of error or omission;
Other Provinces and Territories:

Provincial Tax rates and credits
Ontario Credits
Ontario tax credits are refundable tax credits and only available to individuals who reside in the
province on December 31st of the taxation year. Emigrants who have left the country are not
eligible for Ontario tax credit. The Ontario Tax credit system provides tax relief to Ontario
residents with low to moderate income. The provincial government through CRA funds Ontario
tax credits. Ontario government finances Ontario tax credit for property tax and rental payments.
Foreign students admitted as visitors to Canada are entitled to Ontario tax credits on the same basis
as other Ontario taxpayers, provided they are considered factual rather than deemed residents of
Canada. The following types of credits are available to eligible Ontario residents;
Political Contribution Tax Credit;

Ontario Trillium Benefit;
Ontario Sales Tax Credit;
Ontario Energy and Property tax credit;
Northern Ontario Energy Credit;
Ontario Senior Homeowners' Property Tax Grant;
Softron Tax Page 441

Refundable tax credits can help you reduce or eliminate the amount of tax you owe. Excess
credits may be paid as a refund after your personal income tax return is assessed even if you pay
no income tax. Some refundable credits are paid on a monthly basis while others are paid after
your personal income tax return is assessed.
Political Contributions – Federal vs Provincial

Federal Political tax credit: A taxpayer may claim a credit for
political contributions made during the year to a federal political
party. This credit is only deductible to the extent of federal tax
payable. Any excess amount can't be carried forward to future years.
The Income Tax Act provides for the deduction from tax, up to a
maximum of $650, of a portion of amounts contributed to candidates
at an election of a member or members to serve in the House of
Commons of Canada, and of a portion of amounts contributed to
registered political parties. Official receipts for income tax purposes must be issued to the
contributor.

The federal political contributions are claimed directly on line 40900 and credit is claimed on line
41000. Since the results for federal contributions and provincial contributions are completely
different, make sure that you do not mix up the type of contribution.
Example 1: Dave contributed $1,200 to federal political party. How much can he claim if his net
income is $20,000?
Answer: Contributions to registered parties and candidates at an election are deductible under
the Income Tax Act from tax otherwise payable according to the following schedule: An official
receipt must accompany all claims.
Example 2: Refer to Example 1. How much can he claim if his net income is $6,000?
Answer: Federal political contribution credit is a non-refundable tax credit. As his net income is
less than his personal exemption, he would not get any credit for federal donations.

Ontario Political Contribution Tax Credit
Ontario political contributions are refundable tax credit, which appears on line 47900 of
T1-General. Taxpayer can claim this credit if:
were a resident of Ontario at the end of the year
and contributed to a registered Ontario political party or constituency association, or to
a candidate in an Ontario provincial election.
Taxpayer or taxpayer’s spouse can claim this credit, but a contribution cannot be divided between
them if only one receipt was issued. Only political contributions made during the year can be
claimed as credit. In other words, political contributions can’t be carried forward or back.
The following chart is used to calculate the credit.

For contributions of $415 or less, complete Column 1 below;
For contributions of more than $415 but not more than $1,384, complete Column 2;
For contributions of more than $1,384 but not more than $3,148.75, complete Column 3;
For contributions of more than $3,148.75, enter $1,384 on line 4 on Form ON479.
Example 3: Nina contributed $1,000 to Ontario party. Her net income is zero.
(a) Can she carry forward Ontario Political Contribution to future years?
Answer: No, they cannot be carried forward.
(b) Will she get any tax benefit for these contributions?
Answer: Yes, Nina can claim a refundable credit of $603.75.
Tax Tip: If making political contributions, it is better to contribute to provincial party, since the
maximum credit is higher, and credit is refundable. Maximum credit is $650 for federal and $1,354
for provincial.

Ontario Trillium Benefit (OTB)
The Ontario Trillium Benefit (OTB) includes the Ontario sales tax credit, the Ontario energy and
property tax credit, and the Northern Ontario energy credit. The payments of these three credits
will be combined and delivered on a monthly basis on the 10th of each month, started since July
10, 2012. Taxpayers must apply and be eligible for at least one of these credits to receive the OTB.
Through these refundable tax credits, Ontario provides relief to low to moderate-income Ontarians
to:
help pay for energy costs

provide relief for sales tax and property tax
The Ontario Trillium Benefit makes payments to Ontarians earlier and more frequently than
before. This approach ensures that the payments better match when people incur these costs and
to better align the timing of the assistance with the expenses that people face. In the past, most tax
credits were paid once a year, after people filed their tax returns. This means people get their
benefit earlier.
To apply, taxpayers must complete the Ontario Form ON-BEN which is part of the Income Tax
and Benefit Return package, and file it with the Canada Revenue Agency (CRA). Filing tax return
on or before the normal filing deadline of April 30th will ensure that they will receive Ontario
Trillium Benefit payments on time. If filed late, payments will be delayed.
Ontario Energy
and Property
Tax Credit
Northern
Ontario
Ontario Ontario
Sales Tax
Trillium Energy
Credit
Benefit Credit

Form ON-Ben has to be completed along with 2019 tax return for the following benefits to be
claimed from the programs funded by the Province of Ontario:
Ontario Senior Homeowner’s Property Tax Grant (OSHPTG) 2019

Ontario Sales Tax Credit (OSTC) 2020-21
Ontario Energy and Property Tax Credit (OEPTC) 2020-21
Northern Ontario Energy Credit (NOEC) 2020-21
OSHPTG for 2020 is paid as usual, a single payment after filling the return for 2019.
The OTB should not be confused with the Trillium Drug Plan.
Since July 10, 2012 Ontario Trillium Benefit is paid in monthly/lump sum instalments. In other
words, these payments are issued separately from the tax refunds.
Principal Residence
A principal residence means a housing unit in Ontario,

which was ordinarily occupied by the person. A
principal residence is a home in Ontario where the
individual usually resides during the tax year. A
principal residence can be a house, apartment,
condominium, hotel, motel room, rooming house or a
mobile home for Ontario credit purpose only.
Subsidized or tax-exempt residences do not qualify for

the purpose of Ontario tax credit. These include home for the aged, institution, hostels, military
bases, and nursing homes. If one of the spouses is a senior, the senior should claim the Ontario tax
credit since the benefits will be higher for the senior taxpayers.
Shared Principal Residence: If a person or persons share the principal residence, they can claim
occupancy cost based on their share of the rent or property tax paid by each person in the year.
More than one principal residence in a tax year: Applicants could designate more than one
principal residence if the taxpayer has lived in more than one principal residence in Ontario
consecutively in the previous year. However, you can only have one principal residence at a time.
Occupancy Cost
Only the property tax or rent paid in respect of principal residence may be included in determining
occupancy cost. Property tax or rent paid in respect of a second residence or cottage or the amount
paid in respect of the business use or for the rented portion of the principal residence should not
be included in occupancy cost.
Qualifying single individuals and families can receive up to $1085 for the 2020-21 benefit years,
which is up to $844 in property tax relief and up to $241 in relief for the sales tax on energy.

Qualifying seniors, 64 years of age or older on December 31, 2019, can receive up to $1,236 for
the 2020-21 benefit year, which is up to $995 in property tax relief and up to $241 in relief for the
sales tax on energy.
Occupancy cost cannot include amounts such as:

payments to relatives or friends, unless they report the amounts as rental income on their
returns;
property tax or rent paid on part of a home used for rental or business purposes; or
property tax or rent paid on a second residence, such as a cottage, if the taxpayer has
claimed property tax or rent on his/her principal residence for the same period.
A distinction has to be made between what portion comprises of food and lodging. Only the
lodging part of the payment made can be included for occupancy cost.
Example 4: Kelly is 19 years of age and lives at home. She pays $250 per month to her parents
for room and board. Her parents do not claim that as their rental income on their tax returns. Fair
market value rent is $800 per month. Can Kelly claim the rent credit on her tax return?
Answer: As Kelly is not paying fair market value of the rent, she cannot claim the rent credit on
her tax return. If she was paying $800 per month and her parents were claiming the rental income
then she would be able to claim the rent credit on her tax return.
Farmers
Occupancy cost for farmers includes only the proportion of rent or taxes on a principal residence
and one acre of land. If there are multiple residences on the property, occupancy cost must exclude
tax or rent applicable to residences other than the taxpayer’s own.
Farmer who paid property tax:

enter the property tax paid for principal residence and one acre of land beside box 61120
on Form ON-BEN.
Farmer who paid rent:

enter the rent paid for principal residence and one acre of land beside box 61100
on Form ON-BEN.
Note that property tax rebates are granted to farmers on farmland and outbuilding under other
programs.
Non-seasonal mobile or modular home
If taxpayer lived in a non-seasonal mobile or modular home, based on his occupancy cost for
property tax:
enter the combined total of the property tax that was paid for his home plus the property
tax that the landlord/site owner paid for the lot he leased beside box 61120 on Form ON-
BEN

Nursing home, shelter or hospital
If a taxpayer lives in the nursing home or hospital or any other institution, CRA will consider such
place as principal residence. The taxpayer can claim the occupancy cost for such place, if such
mentioned place paid full municipal and school taxes. Usually nursing home expenses include
food expenses, medical care and occupancy expenses. The taxpayer should get a statement from
nursing home showing the amounts for medical, rent, food etc. Only the amount for rent paid is
eligible for Ontario credit.
University/College Residence
The student, who lived in a prescribed, university/college or private school residence, can only
claim occupancy cost of $25.
The prescribed residence means, the residence, which is a part of the recognized institution
(university/college). In this case the students can't claim the payments made for the rent portion.
This is because the student gets an extra education amount per month and government funds
university residences.
E.g. if a student pays school residence fees of $10,000 per year, he/she can only claim student
residence fees of $25. Enter a tick beside box 61140 of Part A of the Declaration on Form ON-
BEN.
The student who lived off campus and paid rent to landlord can claim the rent paid during the year.
International Students
If an international student is attending an Ontario educational institution and is determined to be

Canadian resident for tax purposes on December 31, 2019, then he/she may be eligible to claim
the rent that they have paid in Ontario.
Marriage in the year
When a taxpayer gets married (or common-law), usually there is more

than one occupancy cost involved:
(1) The rent or property tax paid by the taxpayer prior to the marriage;
(2) The rent or property tax paid by the spouse prior to the marriage;
(3) The rent and property tax paid by the taxpayer and spouse after
the marriage.
Only one of the spouses can claim the Ontario trillium benefit.
(1+2+3).

Example 5: Joan and David got married on November 30th. They have following information
about their rent:
Joan paid - $4,600: Income $25,000
David paid - $3,400: Income $20,000
After marriage both paid rent - $2,900
They want to claim their own rent like previous year and want to file as single to get higher OTB
and GST credit.
Answer: Either Joan or David can claim the whole rent paid during the year but not both. They
can claim $4,600+$3,400+$2,900=$10,900. They have to combine their income for the
calculation of Ontario trillium benefit. Their total credit would be lower compared to prior years
since the credit is based on family income. They cannot file as single since their marital status at
the end of year is married. They should also file change in marital status form (RC65) and pay
back any benefits received after November 30th.
Separation in the year
Example 6: Maria and Jimmy got separated on April 30th of last year. Prior to separation, they
paid rent of $4000 for 4 months. At the time of separation, they agreed to claim half of the rent
paid while doing their taxes. After separation, Maria paid $6000 in rent and Jimmy paid $5000 in
rent. How should they claim OTB? They earn $20,000 each.
Answer: As they got separated during the year, both of them can claim their own portion of rent
and sales tax credit.
Maria will claim:
$2,000 (paid before separation) + $6,000 (paid after separation) = $8,000 in rent paid.
Jimmy will claim:
$2,000 (paid before separation) + $5,000 (paid after separation) = $7,000 in rent paid.
They will use their individual income of $20,000 for the calculation of Ontario Trillium Benefit.
Separation and Reconciliation in a year
If a married couple got separated during the year but lived together at the end
of the year, then only one spouse can claim Ontario tax credit. The occupancy
cost will be rent and property tax for all periods during, which they were
living together, plus rent or property tax during the period of separation.
Involuntary separation
Although the taxpayer has shown marital status on return as married or living
common-law, the taxpayer and his/her spouse may have occupied separate
principal residences for part or all of the year for medical reasons.
If this is the situation, Canada Revenue Agency will consider the taxpayer to
be "involuntarily separated" during that period for rent and property tax credit purposes.

If the taxpayer and his or her spouse were involuntarily separated at any time in the year, but lived
together on December 31st only one person can claim rent and property tax credits for both, based
on combined net income for the year.
If the taxpayer and his/her spouse were involuntarily separated on December 31st, both can claim
property and sales tax credits. In this case, use only one person’s net income when calculating
"Income for Ontario credits" and be sure to enter spouse's address in that section of Form ON-
BEN.
In the year of involuntary separation, each spouse may include the following in calculating
occupancy cost:
A share of the rent or property tax for the part of the year prior to separation in any
manner agreed upon; and
The rent or property tax paid following separation.
Example 7: 45 year old Janet is married to Roulade. Roulade is mentally infirm and has been
living in a nursing home. Janet owns a house and pays property tax. Her net income for last year
was $31,000. She paid $4,800 in property tax. Roulade’s net income for last year is $10,000.
Explain.
Answer: As the separation is involuntary, both of them can claim Ontario Trillium Benefit. Each
one can claim OTB based on individual incomes. They don’t need to include the other spouse’s
income while calculating the credits.
Shared custody of dependant child(ren):
Starting July 2012, for shared custody parents who are entitled to the credit, receive monthly
payments equal to their own credit plus 50 per cent of the amount they would have received if the
child(ren) resided with them on a full-time basis. The payment will form part of the OTB and
child's portion of the Ontario Sales Tax Credit will be calculated and paid in equal monthly
amounts to both shared-custody parents.
Ontario Sales Tax Credit (OSTC)

Ontario tax filers aged 19 and over, may receive payments of up to $313 a year for each eligible
member of your family. If you are a single individual with no children, the amount you receive
will be reduced by four percent of your adjusted net income over $24,115. Families (including
single parents) will receive their payments reduced by four percent of their adjusted family net
income over $30,143.
This credit is in addition to GST/HST payments, so the amount received does not affect the amount
of GST/HST credit payments and vice versa. The maximum Ontario Sales Tax Credit increases
each year with inflation.
Ontario Sales tax credit was paid on quarterly basis for the benefit years respective to base years
prior to 2011. Since 2012, payments are made on a monthly basis as part of Ontario Trillium
Benefit, depending on the amount of total benefit.

File Your Return: Taxpayers should file taxes for the current year to receive OSTC payment on
time. Taxpayers must apply for the OSTC credit on page 1 of Income Tax and Benefit Return
under GSTC. The information provided in the income tax return will be used to determine the
amount for OSTC you will receive. Any changes to your status (e.g. marital status, birth of child,)
should be reported to CRA.
Tax Tip: If you will turn 19 before June 1, 2021, and otherwise qualify, you should apply for the
2020 OSTC on your 2019 return. If you are entitled, you will be issued your first payment after
you turn 19.
Calculation of OSTC:
Basic Credit $313 1
Credit for spouse or common-law partner $
Number of qualified children ____ * 313 $
Benefit Reduction:
Adjusted Family net income $ 2
Subtract base amount $ 3
Family net income over base amount (Line 2 minus $ 4
Line 3). If negative, enter “0”
Minus benefit reduction of: 4% of line 4 $ 5
Total Ontario Sales Tax Credit (Line 1 minus Line $ 6
5). If negative, enter “0”
Monthly Ontario Sales Tax Credit $ 7
Ontario Energy and Property Tax Credit (OEPTC)

The Ontario Energy and Property Tax Credit (OEPTC) is designed to help low to middle income
Ontario residents with their energy costs and property taxes.
Only one spouse per family can make a claim for Ontario energy and property tax credit for a
particular year. As of July 2012, the OEPTC is paid monthly as part of the Ontario Trillium Benefit.
Taxpayer has to be a resident of Ontario at the beginning of a month
to receive that month’s payment.
The OEPTC has two components: an energy component and a

property tax component. Taxpayers should apply for the OEPTC if
they are eligible for either component.
Energy Component
Taxpayer may be eligible for the energy component for 2019, if,
was:
a resident of Ontario on December 31, 2019
18 years of age or older before June 1, 2021;
had a spouse or common-law partner on December 31, 2019;
was a parent and lived with his/her child at the beginning of a payment month;
AND

For 2019, at least one of the following conditions applied:
paid rent or property taxes for a principal residence in Ontario;
lived on a reserve and home energy costs was paid by or for him;
lived in a public long term care home in Ontario and an amount for accommodation was
paid by or for him.
Enter these amounts paid in Part A of Form ON-BEN.
The energy component is the lesser of $241 and the sum of your occupancy cost (as defined below),
excluding $25 for living in a student residence, plus home energy costs paid for your principal
residence on a reserve, and 20% of the amount paid for accommodation in a public long-term care
home.
Property Tax Component
Taxpayer may be eligible for the property tax component for 2019 if the following conditions
apply:
resident of Ontario on December 31, 2019;
18 years of age or older before June 1, 2021;
had a spouse or common-law partner on December 31, 2019;
was a parent and lived with his/her child at the beginning of a payment month; and
for 2019, rent or property tax on a principal residence (as defined above) was paid by or
for him or he lived in a designated Ontario university, college or private school residence.
You are not eligible for either component of a particular payment if you were confined to a prison
or a similar institution at the beginning of that payment month and you were there for a total of
more than 90 days.
To apply for OEPTC, taxpayers need to complete form ON-BEN and place a tick beside box 61180
and by completing Parts A and B.
Qualifying single individuals and families can receive up to $1,085 for the 2020-21 benefit years,
which is up to $844 in property tax relief and up to $241 in relief for the sales tax on energy.
The credit will be reduced by two per cent of any income over $24,115 for single taxpayers and
$30,143 for families, including single parents.
Interest is not charged nor given on any OEPTC overpayments or underpayments.
In the 2011 Budget, the government combined the payments of three existing tax credits — the
Ontario Sales Tax Credit, the Ontario Energy and Property Tax Credit, and the Northern Ontario
Energy Credit — to create the OTB.
The OTB is paid in monthly instalments throughout the year, which helps people meet their
expenses as bills arrive. OTB payments began in July 2012, and many people welcomed a monthly
cheque to help with monthly costs.

However, the government has also heard from people who want the choice of receiving their OTB
as a single payment. In the 2013 Budget, the government proposed to offer OTB recipients a choice
between getting their OTB monthly or as a single payment. They would be able to make this choice
in 2020 on their 2019 tax returns.
People who choose to receive a single payment (by checking a box on their 2019 tax return) would
receive the full amount in June 2021. Making the single payment at the end of the benefit period
would ensure that each recipient receives the same total benefit whether their OTB is paid monthly
or in one single payment. In either case, payments would take into account events that can affect
their benefit, such as the birth of a child, death or moving out of Ontario. Most people would not
choose the single payment option of June 2021.
People who want to get their 2020 OTB in monthly instalments would not check the box for the
single payment. Their monthly payments for that year will start in July 2020.
People who receive a smaller OTB amount get it as a single payment during the first payment
month, which is July for most recipients. This avoids small monthly amounts going out through
the year. The limit for small payments is increased to $360. As a result, people whose OTB is $360
or less will get the total amount in July.
Eligibility for the OTB can change from year to year because of changes in income, age, family
status and location. People must apply for the OTB every year on their tax returns.
Choice for delayed single OTB payment or monthly payment

Jack’s OTB for 2020 is $840. He likes receiving his OTB every month. Jack files his 2019
tax return in early 2020 and automatically gets payments of $70 per month from July 2020
to June 2021.
Anna wants to receive her 2020 OTB of $720 in a single payment, so she would check the
box when she files her 2019 tax return in early 2020. Anna would receive her full OTB in
June 2021 instead of receiving payments of $60 per month.
Like Jack, Anna would receive the same total OTB whether she receives it as monthly payments
through the year or chooses to receive a single payment.
Say for e.g. If Carla’s OTB for 2020 is $350.90. She files her 2019 tax return in early 2020
and gets a single payment for the full amount in July 2020 as the benefit is less than $360.

Documents
The receipts for rent and property tax are not required to be attached with the tax return. But, the
taxpayer must keep the receipts for their records, in case CRA requests to prove the claim. Rent
receipts may be requested, if the taxpayer wasn't living in Ontario for the whole year, but claiming
the rent or property tax for the whole year, which is highly questionable. Rent receipts include;
cancelled cheques or receipts.
CRA usually requests the rent or property tax receipts in situations

where the taxpayer’s declared income on the tax return is not
comparable to rent claimed. A person 18 year of age or under and
residing with parents (parents are claiming child tax benefit for
this person) can't claim the Ontario credit for the taxation year.
Reasonability of Rent and Property taxes paid
Net income of the taxpayer/family should justify the amount of rent and property tax claimed. If
the amount of rent and property tax appears to be unreasonable with respect to income declared
then CRA might question the taxpayer to justify the discrepancy.
Example 8: George is declaring net income of $4,000 but wants to claim rent of $9,600. He has
all the rent receipts. What would you advise the client?
Answer: In this case George’s net income does not justify the rent claim. However, CRA might be
satisfied if he can prove that he had used his savings or had other resources to pay the rent.
Example 9(a): Nicole is twenty one years old and working full time and her total Income is
$10,500. She paid $650 in rent per month during the year. She has lease agreement indicating she
has to pay $650 in rent per month. Can she claim rent and if yes, then show calculation.
Answer: Nicole cannot claim the rent only with a lease agreement. CRA needs proof of payment,
which would be either rent receipt from landlord, bank drafts, or cancelled cheques. Calculations
are shown on the attached forms on next page. She will get OTB of $770 for the year.
Example 9(b): Assume Nicole come to you with lease agreement and copies of cancelled cheques
totalling $7,800.00. But she doesn’t have rent receipts can she claim rent and if yes, then show
calculation.
Answer: Yes, copies of cancelled cheque are acceptable proof of payment.

Answer: Example 9 (a):

Ontario Sales Tax Credit
Basic Credit 313

Credit for Spouse 0
313
Net Family Income 10,500
Base amount (single) 24,115
Income over base amount 0
Therefore no deduction in credit
Ontario Sales tax credot 313
OEPTC
Energy component
Rent paid 7,800
20% of rent paid 1,560
Occupancy cost 1,560
Energy component is $237 or
Occupancy cost whichever is lower 241
Property tax component

10% of occupancy cost 156
Under 64 years, enter 60 216
457
Energy and Property tax component
Net family income 10,500
Base amount (single) 24,115
Income over base amount 0
Therefore no deduction in credit 457
OEPTC 770

Higher credit for seniors (64 and Older)
The credit is more generous to seniors to take into account their age and lower incomes.
The credit is reduced by 2% of the amount by which total income exceeds $30,143 (threshold
amount). However, if senior resides with a spouse or common-law partner, the threshold is
increased to $36,172.
The OEPTC depends on a number of factors, including: your age, marital status, the property taxes
you paid, the rent you paid, the amount you paid to live in a public long-term care home, and your
adjusted family net income.
The maximum 2019 OEPTC is:

$1,085 for non-seniors ($241 for the energy component plus $844 for the property tax
component).
$1,236 for seniors ($241 for the energy component plus $995 for the property tax
component).
For example, for a single senior with income of $32,000, the maximum credit will be
$1,236 2 30,143)] = $1,198.86.

Northern Ontario Energy Credit (NOEC)
The Northern Ontario Energy Credit (NOEC) is

designed to help low- to middle-income Northern
Ontario residents with their energy costs.
Starting July 2012, the Northern Ontario Energy

Credit was paid monthly as part of the Ontario
Trillium Benefit instead of quarterly.
The annual maximum credit for 2020 is $157 for a

single person, 18 years of age and older, and $241
for couples and single parents.
Taxpayers may be eligible for the 2020-21 benefit years if they were a resident of Northern Ontario
at the beginning of the payment month and one of the following conditions applies:
18 years of age or older before June 1st, 2020.

have or previously had a spouse or common-law partner, or are a parent who lives or
previously lived with their child
AND
For 2019, at least one of the following conditions applies:
Paid rent or property tax on your principal residence,

lived on a reserve in Ontario and paid home energy costs (e.g., electricity, heat) principal
residence on the reserve; or
lived in a public long-term care home in Ontario and an amount for accommodation was
paid by or for you.
Northern Ontario means the districts of Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry
Sound, Rainy River, Sudbury (including the City of Greater Sudbury), Thunder Bay, or
Timiskaming.
To receive the credit, taxpayers have to apply by completing the ON-BEN Application for the
2019 Ontario Trillium Benefit and the Ontario Senior Homeowners' Property Tax Grant, which is
part of 2019 personal income tax return.
If taxpayers meet the eligibility requirements above, place a tick beside box 61040 on Form ON-
BEN, complete Part A and Part B and, if applicable, Part C of the Declaration. Make sure to enter
the rent paid beside box 61100 and/or property tax paid beside box 61120.

Senior Homeowners Property Tax Grant (OSHPTG)
The Ontario Senior Homeowners' Property Tax Grant is an annual amount provided to help offset
property taxes for seniors with low and moderate incomes who own their own homes since 2008.
The CRA administers this program for Ontario. The grant is a non-taxable payment that is not
included in income.
Eligibility
Seniors can apply for the 2020 Ontario Senior Homeowners' Property Tax Grant if they meet the
following conditions:
On December 31, 2020:
were a resident of Ontario

owned and occupied principal residence for which
property taxes were paid in year 2020
were 64 or older
spouse or common-law partner has not received a
Property Tax Grant for 2020
meet the income requirements
How to apply
To receive the grant, seniors have to apply for it each year by completing form ONBEN along with
their personal income tax return.
Grant for 2020 will be based on the information provided in 2020 income tax return. Grant is
received by cheque or direct deposit within 4 to 8 weeks after 2019 Notice of Assessment is issued.
Amount of the grant
Eligible senior homeowners will be able to obtain a grant of up to $500 in 2020.

Single seniors who paid $500 or more in property taxes in 2019 and had incomes of up to
$35,000 will receive the maximum grant in 2019. Single seniors with incomes between
$35,000 and $50,000 will receive a proportionately smaller grant.
Senior taxpayers who are single, separated, divorced or widowed their 2020 basic grant
will be reduced by 3.33% of adjusted net income over $35,000.

Senior couples who paid $500 or more in property taxes
in 2019 and had combined incomes of up to $45,000 will
receive the maximum grant in 2020. Senior couples with
combined incomes between $45,000 and $60,000 will
receive a proportionately smaller grant.
Senior taxpayers who are married or living common-
law, their 2020 basic grant will be reduced by 3.33% of
adjusted net income over $45,000.
Tax Tip: If the taxpayer was eligible for the grant for 2019 but forgot to claim it on 2018 tax
return, then it is still not too late. To claim the senior grant, an adjustment to his 2018 tax return
should be made.
In the year of death: The estate of an eligible taxpayer who dies at any time during 2019 can
apply for the 2019 OSHPTG on a 2019 income tax and benefit return for the deceased taxpayer.
The payment will be issued to the estate.
Example 10: 67 year old Henry is married to 58-year-old Jane. Henry’s net income is $13,800
and Jane’s net income is $11,200. They have paid rent of $1,000 per month during the current
year. How much Ontario Trillium Benefit will they get? Who should claim it?
Answer: Henry (a senior) should claim Ontario Trillium Benefit since he gets higher Ontario
Energy and Property tax credit. See the calculations below for comparison.
If Jane claims, she gets only $1,167 ($626+$541) in OEPTC. However, if Henry claims they get
$1,619 ($626+$993).
This is a substantial difference of $444.
Ontario Sales Tax Jane Henry Ontario Energy & Property Jane Henry
Credit Tax Credit
Basic credit 313 313 1 Rent paid 12,000 12,000 1
Credit for Spouse 313 313 2 20% of rent paid 2,400 2,400 2
Subtotal 626 626 3 Occupancy cost 2,400 2,400 3
Net Family income 25,000 25,000 4 Energy component: 241 241 4
Lesser of Line 3 or $237
Base amount 30,143 30,143 5 10% of occupancy cost: Line 3 240 240 5
Income over base 0 0 6 If Under 64: add $59 60 512 6
amount If Above 64: add $503
4 % of line 6 0 0 7 Property Tax component 300 752 7
Add Line 5 and 6
Line 3 minus Line 7 626 626 8 Total 541 993 8

Jane:
Henry:
Example 8: Siva (69 years old) is married to Rani (54 years). Siva died during the year. His
income was $20,000 for the year. Rani has no income. They paid rent of $6,500 per year to Peel
Properties. Rani usually does not file a tax return since Siva files for the credits. Complete the
attached ON-BEN form.
Answer: Rani should file her own taxes to claim Ontario credit. Rani should also file for GST
credit, CPP death benefits, and survivor’s benefits. She should not include deceased Siva’s income
for Ontario Trillium Benefit calculations.

Tax Tip: In the year of death, the surviving spouse should claim Ontario Trillium Benefit and GST
credit since deceased person is not eligible for these credits. Watch out for data entry errors and
make sure that you are entering information in the correct boxes.

Most common Mistakes for Ontario Credits
Mixing federal and provincial political contributions;

Claiming college/university campus residence rental payments on Ontario credits rather
than $25. (If a student lives on campus, only $25 can be claimed as rent credit);
OEPTC is based on combined net family income. Spouse’s net income must be entered in
schedule 2. Only one spouse can claim OEPTC;
Medical expenses should be claimed even though the taxpayer’s income is less than total
non-refundable credits to claim refundable medical supplement;
Data entry: Entering rent of $96,000 instead of $9,600;
Mixing rent and property taxes paid and entering in the wrong line number;
Claiming OEPTC for non-resident spouse and children;
Claiming OEPTC on deceased ‘s tax return when should be claiming on surviving spouse’s
return; and
Not claiming the Senior Property Tax Grant.
Example 12: John is 62 years. He has net income of $20,000 and paid rent of $8,000 for the year.
He doesn’t have any other credits. Upon reviewing the tax return, you noticed that OEPTC is
$1,085. What mistake did the tax preparer make?
Answer: As a tax professional one should be able to figure out that there has been an error in
claiming rent. In this case, it seems that the tax preparer must have claimed $8,000 of rent as
property tax paid.
You must be careful with the data entry while using tax software and ensure that final results
make sense.

Federal Climate Action Incentive (Line 45110)
The climate action incentive (CAI) payment consists of a basic amount and a
10% supplement for residents of small and rural communities. This payment
may reduce your amount payable or increase your refund when you file your
income tax and benefit return.
Only one person per family (you or your spouse or common-law partner) can
claim the CAI payment. You can claim the CAI payment if on December 31,
2019, you were a resident of Alberta, Saskatchewan, Manitoba and Ontario
And you were:
18 years of age or older, or
o If younger than 18, so long as you:
had a spouse or a common-law partner, or
were a parent who lived with their child
You cannot claim the CAI payment if at any time in 2019 you were any of the following:
a non-resident of Canada
confined to a prison or a similar institution for a period of at least 90 days during the year
an officer or servant of the government of another country, such as a diplomat, or you
were a family member who lived with such a person or an employee of such a person
a person for whom a children's special allowance was payable
Note: a person who dies before April 1, 2020, is not eligible to claim the CAI payment.
Amounts for other persons:

Depending on your personal situation, you could be eligible to claim the CAI payment for certain
family members or dependants, as well as the 10% supplement for residents of small and rural
communities.
Amount for eligible spouse or common-law partner:

To claim the CAI payment for a spouse or a common-law partner, you must be married or in a
common-law partnership on December 31, 2019.
You cannot claim the CAI payment for your spouse or common-law partner if at any time in
2019 your spouse or common-law partner was any of the following:
an officer or servant of the government of another country, such as a diplomat, or they
were a family member who resided with such a person or an employee of such a person
a person for whom a children's special allowance was payable
Note: you are not eligible to claim the payment for a spouse or a common-law partner if they died
before April 1, 2020.

Amount for a qualified dependant:
You can claim the CAI payment for a dependant if, on December 31, 2019, your child or dependant
(or your spouse’s or common-law partner’s child or dependant):
was dependent on you (or your spouse or common-law partner) for support
lived with you (in the same home)
was under 18 years old
was not married or living in a common-law partnership, and
was not a parent that lives with their child
You cannot claim the CAI payment for a dependant if at any time during 2019 your child or
dependant (or your spouse or common-law partner’s child or dependant) was:
an officer or servant of the government of another country, such as a diplomat, a family
member who resided with such a person, or an employee of such a person, or
a person for whom a children’s special allowance was payable
Note: you are not eligible to claim the CAI payment for a dependant (or your spouse’s or common-
law partner’s child or dependant) if they passed away before April 1, 2020.
Amount for a single parent's qualified dependant:

To claim the CAI payment for a single parent’s qualified dependant, on December 31, 2019, you
must: not be married or in a common-law partnership, and have a child (or dependant) who meets
all the conditions of a qualified dependant.
Shared custody:
Only one claim for a CAI payment can be made per child. The payment cannot be split between
parents.
Supplement for residents of small and rural communities:
To claim the supplement for residents of small and rural communities, you must have resided
outside of a census metropolitan area (CMA) on December 31, 2019.
How much you can expect:

The maximum you can claim depends on your province of residence as well as your personal
situation:

How much you can expect
Spouse or Qualified Single parent's
Basic common-law dependant qualified dependant
Province Amount partner amount amount amount
Saskatchewan $405 $202 $101 $202
Manitoba $243 $121 $61 $121
Ontario $224 $112 $56 $112
Alberta $444 $222 $111 $222
Schedule 14 for Ontario:
Refundable medical expense supplement

The maximum refundable medical expense supplement is
$1,248 and is claimed on Line 45200 of Income Tax and
Benefit Return. The purpose of this credit is to help low
income families with higher medical expenses. The non-
refundable medical credit (Line 33099) may not help
families with low income.
This refundable credit will be available to an individual

(other than a trust) and who has a net income of at least $3,645, in the year from employment
and/or businesses. Net income from offices and employment is the excess of salary, wages,
employment-related benefits and other remuneration including gratuities over the allowable
deductions.

The allowable deductions include registered pension plan contributions, annual union and
professional dues, and other expenses, e.g. employment expenses. Amounts received under wage-
loss replacement plans are not included in this calculation of net income. The credit will be limited
to the lesser of:
$1,248 and
25% of the portion of expenses allowed for the purpose of claiming the medical expense tax
credit. (Total of line 21500 and/or Line 33200).
The credit will be reduced by 5% of the net family income in excess of $27,639.
To qualify for the credit, an individual must be at least 18 years old before the end of the year and
be resident of Canada throughout the year (or, where the individual dies in the year, only the part
of the year before the individual's death).
This credit can be claimed in respect of the same expenses as the medical expense tax credit on
Line 33099 of Income Tax and Benefit Return.
Most of the seniors may not be eligible for the refundable medical credit due to earned income
limitations. A taxpayer with the net income or combined net income (married or common-law
spouse) of $52,599 or more can't claim the refundable medical credit. A taxpayer can claim the
medical expenses on line 33099 and line 45200 for the same expenses.
Example 13: Ali has employment income of $22,500 for the taxation year. He is single. He has
$6,200 in medical expenses. Ali does not have any other income or deduction. Can he claim
refundable medical expenses?
Answer: Yes, he can claim $1,248 in medical supplement on Line 45200 in addition to medical
expenses claim of $5,525.00 on Line 33200.
Medical expenses: $6,200.00

Less 3% of $22,500 $675.00
Allowable medical expenses $5,525.00

Eligible educator school supply tax credit
(Lines 46800 and 46900)
From 2016 and subsequent tax years, if taxpayer is an eligible educator they can claim up to $1,000
of eligible teaching supplies expenses.
An eligible educator must be employed in Canada at any time during the 2019 tax year as:
a teacher at an elementary or secondary school, or an early childhood educator at a
regulated child care facility; and
held a teaching certificate, license, permit or diploma, or a certificate or diploma in early
childhood education, which was valid and recognized in the province or territory in which
they were employed.
Eligible supplies expenses for teaching supplies: An eligible supplies expense is an amount that
taxpayer paid in 2019 for teaching supplies that meet all of the following conditions:
bought the teaching supplies for teaching or facilitating students’ learning;
the teaching supplies were directly consumed or used in an elementary or secondary school
or in a regulated child care facility in the performance of employment;
taxpayers were not entitled to a reimbursement, allowance, or any other form of assistance
for the expense (unless the amount is included in the calculation of their income from any
tax year and is not deductible in the calculation of their taxable income); and
the eligible supplies expense was not deducted from any person’s income for any year or
included in calculating a deduction from any person’s tax payable for any year.
Teaching supplies are consumable supplies and prescribed durable goods. Prescribed durable
goods are:
books, games and puzzles;
containers (such as plastic boxes or banker boxes); and
educational support software.
Enter, on line 46800 (to the left of line 46900), the total of the expenses for the eligible educator
school supply tax credit. The refundable portion is 15% of the total eligible fees. Enter the result
of the calculation on line 46900.

Canada Workers Benefit (Line 45300)
For 2019 and subsequent taxation years, the Canada Workers

Benefit (CWB) replaces and strengthens the Working Income
Tax Benefit (WITB). The CWB is a refundable tax credit that
supplements the earnings of low income workers and improves
work incentives for low-income Canadians.
The budget proposed that the amount of the CWB to be equal to

26% of each dollar of earned income over $3,000, to a maximum
credit of $1,355* for single individuals without children and
$2,335* for families (couples and single parents). The maximum
credit is reduced by 12% of adjusted net income over $12,820*
for single individuals without children and $17,025* for
families.
* These amounts are indexed to inflation after the 2019 taxation year.
Note: The parameters for the CWB may differ for residents of provinces or territories that enter
into reconfiguration agreements with the federal government to make specific changes to the
design of the benefit. Currently, the federal calculation of the WITB applies to residents of all
provinces and territories other than Nunavut, British Columbia, Alberta and Quebec, for which
there are unique calculations.
You can claim the CWB on line 45300 (Schedule 6) of your 2019 Income Tax and Benefit Return
if your working income earned from employment or business is over $3,000, and you meet all the
eligibility criteria.
In order to be eligible for the CWB a taxpayer must be:

19 years of age or older at the end of the year;
a resident of Canada throughout the year and:
an individual with no eligible dependants, with a net income of less than $24,111; or
an individual with an eligible spouse, or at least one eligible dependant, with a family net
income of less than $36,483.
Exception: If the taxpayer is under 19 years of age, he may still be eligible for the CWB, if he has
a spouse or common-law partner or an eligible dependant on December 31, 2019.
The CWB is calculated using the following information:

marital status;
province or territory of residence;
working income;
net income;
eligible dependant; and
eligibility for the CWB disability supplement.

Working income
Working income for a tax year is the total amount of an individual’s or

family’s income from:
employment income (incl. Tips, gratuities, non-taxable
income earned on a reserve and emergency volunteer
allowances) ;
net business income (excluding losses);and
taxable parts of scholarships and research grants.
For more information:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-
return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-45300-
canada-workers-benefit-cwb.html
Family net income
Family net income is an individual’s net income (line 23600 of the Income Tax and Benefit Return)
added to the net income of his or her spouse or common-law partner, Minus any amount reported
for the Universal Child Care Benefit for tax years prior to 2016 (line 11700 of the Income Tax and
Benefit Return) and Registered Disability Savings Plan (Line 12500) Plus UCCB and RDSP
repayments line 21300 and Line 23200 of the tax return.
Eligible dependant
To claim an eligible dependant under CWB, the eligible dependant must be, at the end of 2019:
was your or your spouse’s or common-law partner’s child
was under 19 years of age; and lived with you on December 31, 2019
was not eligible for the CWB for 2019
Example 11: Jennie is 23 years old and has a 3-year-old daughter. She attended university full-
time in 2019. Is she still eligible for CWB?
Answer: Yes, even though she was enrolled as a full-time student at a designated educational
institution for more than 13 weeks in 2019, she is still eligible for CWB since she has an eligible
dependant.

Eligible spouse
For CWB purposes, an eligible spouse at the end of 2019 is a person who:
is your cohabiting spouse or common-law partner on December 31, 2019;

is a resident of Canada throughout the year in 2019;
is not enrolled as a full-time student at a designated educational institution for a total of
more than 13 weeks in the year, unless he or she has an eligible dependant at the end of the
year;
is not confined to a prison or similar institution for a period of 90 days or more during the
year; and
is not an officer or servant of another country, such as a diplomat, or a family member or
employee of such person.
The maximum CWB for year 2019 is:

$1,355 for single individuals with no eligible dependants;
$2,335 for families (individuals with an eligible spouse, or at least one eligible
dependant).
In the case of a single individual with no dependants, CWB will be reduced by an amount equal to
15% of the net family income (for the purpose of CWB) in excess of $12,820.
In the case of a family (including single parent families), the CWB will be reduced by an amount
equal to 12% of the net family income (for the purpose of CWB) in excess of $17,025.
Disability supplement
If the taxpayer is eligible for the CWB and the disability amount (line 31600), taxpayer may also
be able to claim an annual disability supplement of up to $700 for year 2019.
The maximum amount for families (couples and single parents) is $700 for each qualifying
individual (other than a dependant).To be eligible for the disability supplement, the taxpayer’s
working income must be over $1,150 and the Canada Revenue Agency (CRA) must have
an approved Form T2201, Disability Tax Credit Certificate, on file.
The taxpayer is not eligible for the CWB if:
They do not have an eligible dependant and they were enrolled as a full-time student at a
designated educational institution for more than 13 weeks in the current year;
Income is too high to be eligible for working income benefit;
They were confined to a prison or similar institution for a period of more than 90 days
in the year; or
They don’t have to pay income tax in Canada because they are officers or servants of
another country, such as a diplomat, or a family member or employee of such person.

CWB Advance payments for 2020
Eligible individuals or families will be able to apply for CWB advance payments. These advance
payments can be up to 50% of the CWB that the individual expects to claim on his/her 2020
Individual Income Tax and Benefit Return. They may also apply for the Disability Supplement as
part of the CWB advance payment. Any CWB that they are entitled to and did not receive as
advance payments will be paid to them when their 2020 tax return is assessed.
They cannot apply for CWB advance payments for 2020 if they became or ceased to be a resident
of Canada in 2019.
The annual maximum amount they can receive in CWB advance payments is:
$1,355 for single individuals without eligible dependant(s); or

$2,335 for families (individuals with an eligible spouse or eligible dependant).
The annual maximum amount they can receive in advance payments of the disability supplement
is $700 for each individual excluding dependants. If more than one individual per household is
entitled to the disability supplement, only one individual will receive the advance payment. The
other individual must claim the supplement on his or her Income Tax and Benefit Return.
To receive CWB advance payments for 2020, an individual must apply between January 1 and
August 31, 2020, by completing Form RC201, Canada Workers Benefit Advance Payments
Application for 2020. Applications for advance payments received after August 31, 2020,
will not be processed.
After the application is processed, the CWB advance payment will be divided by the number of
remaining payment dates and will be paid in equal instalments. The payments are generally issued
on the 5th day of each quarter, April, July, October, and January. The individual has to complete
Form RC201 each year to receive CWB advance payments.

CWB and Deceased individuals
Contact CRA if a CWB advance payment was received and the recipient has died. Return the
payment to CRA and indicate the date of the recipient’s death.
Single individuals – If the CWB recipient dies after June 30, he or she is no longer eligible for
CWB advance payments but may still be eligible for the CWB refundable tax credit on his or her
final Individual Income Tax and Benefit Return.
Married or common-law couples – The surviving spouse or common-law partner of a deceased

CWB recipient must submit a new application before September 1 if he or she wishes to continue
receiving CWB advance payments.
How to claim: To claim and to calculate the CWB, complete Schedule 6, Canada Workers Benefit,
enter the CWB amount from Schedule 6 on line 45300 of Income Tax and Benefit Return.
Example 14(a): Riya is a 23 year old single mother. Her daughter’s name is Marian, she is 5 years
old. Riya is a full-time student for 4 months with a post-secondary institution, she paid eligible
Tuition fees of $3,500.00 in the current year and she has a T2202 form for year 2019. Her
employment income is $14,250.00 in 2019. Is she eligible for the CWB claim? If yes how much?
Answer: Even though, Riya is a full-time student at a designated educational institute for more
than 13 weeks in 2019, she is still eligible for the CWB claim because she has an eligible
dependant. She will get CWB of $2,355. The credit amount is calculated on line 45300 of
Income Tax and Benefit Return.
See attached Schedule 6 on next page.
Example 14(b): In the above example, if Riya has no dependant and everything else is same, how
much CWB she will receive?
Answer: Riya would not be able to claim CWB, since she was a full time student for more than 13
weeks.

Adjustments to a Tax Return
If the taxpayer wants to make changes after the return has

been filed to correct an error or omission, a request for
adjustment should be made. Taxpayer should wait until he or
she receives notice of assessment before requesting any
change to a return that has not been processed.
Only requests relating to tax years ending in any of the 10

calendar years before the year you make the request will be
considered. For example, a request made in 2020 must relate
to the 2010 or a later tax year to be considered.
ReFILE is a new CRA service that allows EFILE service providers to submit adjustments
through their certified software. You can use ReFILE to submit adjustments to 2016 to 2019
income tax and benefit returns if your clients initially filed their tax return online. In the future,
the Canada Revenue Agency (CRA) will expand the service to include more years.
Who can use ReFILE?

You can use the ReFILE service if the following conditions apply:
You are an EFILE service provider in good standing with the CRA. This means you were
accepted to use EFILE or your EFILE privileges have not been suspended or revoked.
You use certified EFILE software with the ReFILE service.
Your client initially filed their tax return online.
You are not discounting on the ReFILE submission.
You cannot use ReFILE to change page 1 of the taxpayer's Income Tax and Benefit Return.
Instead, individual taxpayers should use My Account to make changes to the following
information:
marital status
address
direct deposit
email address
Online Adjustments: Taxpayers can now request an online adjustment to their return if they
have access to “My Account” on the CRA website. A tax preparer can process online adjustment
on behalf of the client on the CRA website. The client has to authorize the tax preparer to access
his/her account by signing Authorization form.
Paper Adjustments: Could be made using the form T1 Adjustment Request.

completed Form T1 Adjustment Request, or a signed letter providing the details of your
request (including the years of the returns you want to change), along with social insurance
number, address, and a telephone number where CRA can reach you during the day; and

along with the request form, the taxpayer needs to include receipts, statements and any
other information that will substantiate the claim. If the supporting documentation was not
provided for the original claim, it has to be submitted at the time of making the adjustment
request for both the original claim and for the changes that the taxpayer wants to make. If
the taxpayer received an “amended” slip after the tax return was filed, this slip has to be
attached to the adjustment request.
A letter could also be sent to make an adjustment but the use of the form T1 Adjustment request
instead of a letter speeds up the processing of the adjustment request. CRA can process a form T1
Adjustment request faster than a letter because its format makes it easier for their staff to identify
the request and to prepare the necessary adjustments.
Processing times
online, usually within 2 weeks
by mail, usually within 8 weeks
Identification: This will let CRA identify the name of the taxpayer and the year for which the
adjustment is requested.
Authorization: This section is to be completed if another individual or a tax preparation firm is

requesting the adjustment and the taxpayer has given a written authorization for representing the
client.
Adjustment Details: This section is used to provide details about the changes that the taxpayer
would like to make. The details could be provided in the following columns:
Line numbers – Only the income, deduction or the credit lines could be changed. The
lines showing the final results of net income, taxable income, calculations and the
balance due or refund need not be shown as these amounts will be changed by CRA.
Description of lines - The description of the lines corresponding to the line numbers
are shown in the second column;
Previous Amount - The amount previously reported for that line is to be entered here.
If there was no amount entered, enter 0;
+ Or -: Enter whether the previously reported amount is going up or down;
Amount of change – The difference between “Previous Amount” and the “Revised
Amount” is entered in this column.
Revised Amount - The new figures will be shown here.
The second part of Form T1 Adjustment request is used to provide “Other details or explanation”.
This part should be unambiguous about the changes that the taxpayer wants CRA to make to the
return.
Certification: The form must be dated and signed.
Documents and Schedules: CRA requires the appropriate documentation to make the adjustment
to the tax return. Before sending the original documents a taxpayer should make photocopy of
receipts and slips for their records. All appropriate documents should have SIN of taxpayer.

For more information: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-
businesses/refile-online-t1-adjustments-efile-service-providers.html
Example 15: Jonathan Reek is divorced and has income of $30,000. He has a dependent child.
While preparing his income tax return for year 2019, he had forgotten to claim Janice Reek (8
years old), his daughter as eligible dependant. After filing his taxes, he received another T5 slip
showing interest income of $108.20 from TD Canada. Complete the Form T1Adjustment.
Answer: Jonathan should attach a copy of T5 slip, Schedule 5, birth certificate and custody papers
with adjustment request. He will be claiming Eligible dependant amount for his daughter. He will
also be eligible for Canada Workers Benefit.
Note: If Jonathan is eligible for GST credit, he should also request CRA to make appropriate
changes to GST calculations to include an amount for eligible dependant to receive higher GST
credits. He should also apply for CCB by filing the CCB application RC66.

Common mistakes done by tax preparer when completing amended return:
Not entering the correct tax year that the adjustment relates to.
Not communicating to taxpayer that adjustment will take minimum of 12-16 weeks if not
filed online.
Mixing previous amounts and revised amounts with incorrect amount on change (+/-).
Not including appropriate schedules and proper documentation and
Not including supporting documents along with T1adjustment
Not providing details or explanation that makes sense.
Example 16: Maureen forgot to claim rent credit on her tax return. She filed her own tax return.
She is single with no dependant. She wants to know what is required to complete adjustment
request. Explain. Her net income is $20,000.
Answer: The following information is required:
Maureen’s net income (Line 23600)

Amount of Rent;
Landlord’s name; and
Receipt from landlord indicating the amount of rent paid and
Copy of her income tax return or Notice of Assessment.
ONBEN form and receipt for rent must be attached with the adjustment request.
The whole process can be done Online by a tax Professional.
Example 17: Natasha (65 years) filed her own taxes and while calculating her Ontario credits,
she reported her property tax paid as rent. Now she has come to you to adjust her return what
would you do? Her income is $25,000.
Answer: You will ask her for Property tax bill. Then file an adjustment for her to remove rent and
add the property taxes paid for the year. You would also apply for Senior Property Tax Grant.
Get the authorization form signed and E-file the form to get instant online access. Upon having
the authorization, you can review all her prior year taxes to determine if there is any way you can
save additional taxes. You can electronically adjust any of the past 10 years taxes online.

Provincial Tax Rates for 2019 & 2020 tax years
ONTARIO:

BRITISH COLUMBIA:

ALBERTA:

SASKATCHEWAN:

MANITOBA:

QUEBEC:

NEW BRUNSWICK:

NOVA SCOTIA:

PRINCE EDWARD ISLANDS:

NEWFOUNDLAND & LABRADOR:

YUKON:

NORTHWEST TERRITORIES:

NUNAVUT:

Summary
Ontario Credits The Ontario credits may be claimed by:
Individuals over the age of 18.

The individuals who are living with parents may not be eligible
to claim Ontario credit if their parents/guardian claimed
them as dependant.
Adjustment to a return T1adjustment form is used to amend an already filed tax return.
The adjustment takes anywhere from 8 to 16 weeks.
Canada Workers Benefit Low-income individuals or families must have over $3,000 of
(CWB) adjusted net family income (for the purpose of the CWB). The
maximum CWB for 2019 is $1,355 for single individuals with no
eligible dependants, or $2,335 for families (individuals with an
eligible spouse, or at least one eligible dependant).
In order to claim CWB, certain conditions must be met.
The maximum amount for families (couples and single parents)

is $700 for each qualifying individual (other than a dependant)
disability supplement.
Schedule 6 must be completed for your province or territory to

claim and to calculate the CWB.
Complete this chapter’s exercises.

After completing the exercises check your answers.
Also watch the Videos Available Online to complete your learning

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Chapter 8 REFUNDABLE TAX CREDITS, BENEFITS, T1

ADJUSTMENT & PROVINCIAL TAX RATES

Other Provinces and Territories:

Political Contribution Tax Credit;

Softron Tax Page 441

Political Contributions – Federal vs Provincial

Softron Tax Page 442

Softron Tax Page 443

The following chart is used to calculate the credit.

Softron Tax Page 444

help pay for energy costs

Softron Tax Page 445

Ontario Senior Homeowner’s Property Tax Grant (OSHPTG) 2019

A principal residence means a housing unit in Ontario,

Subsidized or tax-exempt residences do not qualify for

Softron Tax Page 446

Occupancy cost cannot include amounts such as:

Farmer who paid property tax:

Farmer who paid rent:

Non-seasonal mobile or modular home

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If an international student is attending an Ontario educational institution and is determined to be

Marriage in the year

When a taxpayer gets married (or common-law), usually there is more

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Separation in the year

Separation and Reconciliation in a year

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Shared custody of dependant child(ren):

Ontario Sales Tax Credit (OSTC)

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Ontario Energy and Property Tax Credit (OEPTC)

The OEPTC has two components: an energy component and a

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Enter these amounts paid in Part A of Form ON-BEN.

Property Tax Component

Interest is not charged nor given on any OEPTC overpayments or underpayments.

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Choice for delayed single OTB payment or monthly payment

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CRA usually requests the rent or property tax receipts in situations

Reasonability of Rent and Property taxes paid

Answer: Yes, copies of cancelled cheque are acceptable proof of payment.

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Basic Credit 313

Property tax component

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The maximum 2019 OEPTC is:

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The Northern Ontario Energy Credit (NOEC) is

Starting July 2012, the Northern Ontario Energy

The annual maximum credit for 2020 is $157 for a

18 years of age or older before June 1st, 2020.

For 2019, at least one of the following conditions applies:

Paid rent or property tax on your principal residence,

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On December 31, 2020:

were a resident of Ontario