- Accountant GTA
The Ontario government introduces new energy tax credit for Ontario resident in 2011. In the 2009 Ontario Budget, the government proposed two new tax credits to replace the combined sales and property tax credits: the Ontario Sales Tax Credit and the Ontario Property Tax Credit (OPTC). These credits were part of the Tax Plan for Jobs and Growth designed to modernize Ontario’s tax system. To qualify for the (OEPTC) the person must file their taxes on annual basis by Accountant GTA.
In the 2010 Budget, the government proposed to convert the OPTC to the Ontario Energy and Property Tax Credit (OEPTC) starting with the 2010 tax year. The OEPTC would deliver almost $1.3 billion in annual support. This represents an increase of $525 million compared to the property tax credit relief provided in 2009.
To target assistance to those who need it the most, the OEPTC would be income-tested. To provide additional assistance specifically for seniors, the government is proposing to increase the income levels at which the credit begins to be reduced for seniors from those announced in the 2009 Budget. This means that more seniors would benefit from the full credit and a greater number of seniors would qualify for it.
The income thresholds for seniors would be increased as follows:
· from $20,000 to $25,000 for single seniors, and
· from $25,000 to $30,000 for senior couples.
In the 2009 Budget, the non-senior
income thresholds were raised from $4,000 to $20,000 for single people and to $25,000 for families, including single parents.
For all recipients, the OEPTC would
be reduced by two per cent of adjusted family net income over the applicable income thresholds, which would be indexed for inflation.
For non-seniors, a family or a
single person who owns or rents a home would be able to claim an energy amount of up to $200. In addition, they would be able to claim a property tax amount of $50 plus 10 per cent of their occupancy cost, to a maximum of $700. (Occupancy cost is equal to the property tax paid and/or 20 per cent of qualifying rent paid during the year.) The property tax amount would not be allowed to exceed occupancy cost. The maximum energy and property tax amounts that could be claimed would be $900. The total of these amounts would be reduced by two per cent of adjusted family net income over $20,000 for a single person or over
$25,000 for a couple or single parent.
Additional benefits would be provided to seniors. A senior family or a single senior who owns or rents a home would be able to claim an energy amount of up to $200. In addition, they would be able to claim a property tax amount of $425 plus 10 per cent of their occupancy cost, to a maximum of $825. (Occupancy cost is equal to the property
tax paid and/or 20 per cent of qualifying rent paid during the year.) The property tax amount would not be allowed to exceed occupancy cost. The maximum energy and property tax amounts that could be claimed would be $1,025. The total of these amounts would be reduced by two per cent of adjusted family net income over $25,000 for a single senior or over $30,000 for a senior couple or single parent.
For more Information:
http://www.rev.gov.on.ca/en/credit/oeptc/index.html