As you review the results of the completion of your 2011 Income Tax Return you may notice some differences in the Provincial Tax Credits portion of the Return and you may even experienced a reduction in the amount of your refund.

This year the Province of Ontario has completed an overhaul of several Provincial Tax Credits and created a new amalgamated Tax Credit called the Trillium Benefit.

The following information is taken directly from the Province of Ontario website.

Through refundable tax credits, the Province provides relief to low- to moderate-income Ontarians for the taxes and energy costs they face. Through the Ontario Trillium Benefit (OTB), the Province transformed the delivery of Ontario’s key refundable tax credits by making payments to Ontarians earlier and more frequently than before. This approach ensures that the payments better match when people incur these costs. In the past, most refundable tax credits were paid once a year, after people filed their tax returns.

Eligible Ontarians received the first of four installments for the 2011 Ontario Energy and Property Tax Credit (OEPTC) and Northern Ontario Energy Credit (NOEC) in July. Subsequent payments will be made in December 2011, and March and June 2012. In addition, they received the first two of four installments of the 2011 Ontario Sales Tax Credit (OSTC) in August and November 2011 with more payments coming in February and May 2012.
The Province is providing a total of $2.4 billion each year through the OSTC, OEPTC and NOEC. The payments of these three credits will be combined and delivered monthly as the OTB, starting in July 201.

Eligibility
You must be eligible for at least one of the OSTC, OEPTC or NOEC to receive the OTB.

Application
To apply, you must complete Ontario Form ON-BEN which is part of the 2011 T1 General Income Tax and Benefit Return package and file it with the Canada Revenue Agency (CRA). The normal deadline for filing individual tax returns is April 30th each year. Failure to file by this deadline may result in delay in receiving OTB payments.

Illustrative Examples (Using 2011 Credit Amounts)

Example 1:
A single parent with one child and adjusted net income of $20,000 paying $629 per month in rent would receive a total of $936 from the OSTC and OEPTC over eight payments. Under the proposed OTB, the single parent would receive 12 equal monthly payments.

Example 2:
A senior couple with adjusted family net income of $35,000 paying $1,200 per month in rent would receive a total of $984 from the OSTC and OEPTC over eight payments. Under the proposed OTB, the couple would receive 12 equal monthly payments.

Example 3:
A family of four with adjusted family net income of $25,000 paying $920 per month in rent would receive a total of $1,536 from the OSTC and OEPTC over eight payments. Under the proposed OTB, the family would receive 12 equal monthly payments.