Ontario Sales Tax Transition Benefit Questions and Answers

1. What is the Ontario Sales Tax Transition Benefit (OSTTB) program?
2. Am I eligible to receive an OSTTB payment?
3. I am married. Will both my spouse and I get these payments?
4. How much will I receive?
5. When will I get my OSTTB payment?
6. Who will issue the OSTTB payments?
7. How will the OSTTB payments be issued?
8. Do I have to apply for the OSTTB?
9. How will the CRA determine if I am a single parent?
10. My ex‑spouse and I share custody of our nine‑year‑old daughter. Neither of us has remarried. Will I receive the OSTTB payments for my child?
11. I’m single, I live in Ontario and I gave birth to my first child in August 2010. Will I qualify for the higher OSTTB payment?
12. How do I register my child for the CCTB so that I can receive the family rate for the OSTTB payments?
13. If a taxpayer dies during 2010 or 2011, is the estate eligible for the OSTTB payments?
14. I permanently moved to Ontario from Manitoba in July 2010. Am I eligible for the OSTTB?
15. I am a student who usually lives in Ontario but I am currently attending a post-secondary educational institution in another province. Am I eligible for the OSTTB payments?
16. I recently immigrated to Ontario from another country. What special rules apply to me?
17. I have not yet filed my 2009 or 2010 income tax and benefit returns. Will I receive my OSTTB payments?
18. Where can I get the forms I need to file my 2009 and 2010 returns?
19. I met all of the conditions to get an OSTTB payment, but I didn’t receive a payment. What should I do?
20. My address recently changed—what should I do?
21. Is the OSTTB a taxable benefit?
22. Will the OSTTB payment I receive affect any of my other government payments, such as employment insurance benefits, social assistance payments, or the new Ontario sales tax credit payments?
23. Will there be interest paid or charged on any OSTTB underpayments or overpayments?
24. I have an outstanding debt with the CRA and didn't receive my GST credit because I owed money to the government. Will I receive my OSTTB payment?
25. Who should I contact if I have a question about Ontario’s policy on the OSTTB?

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1. What is the Ontario Sales Tax Transition Benefit (OSTTB) program?
The OSTTB program provides for up to three separate payments to residents of Ontario. This program helps residents of Ontario transition to the harmonized sales tax system that came into effect on July 1, 2010. The first payment was issued in June 2010, and the second was issued in December 2010 and third and final payment will be issued starting on June 10, 2011, to eligible Ontarians. The Canada Revenue Agency (CRA) is administering the program for the Province of Ontario.

Note:
The OSTTB program is in addition to the Ontario Sales Tax Credit (OSTC) and GST/HST credit programs. So the amount of your OSTTB payment has no impact on your OSTC or GST/HST credit payments and vice versa.

2. Am I eligible to receive an OSTTB payment?
Eligibility for each of the three OSTTB payments will be determined independently. The CRA will look at your eligibility for each of the specified dates below:

• June 2010 payment – The CRA will review your eligibility as of May 31, 2010.
• December 2010 payment – The CRA will review your eligibility as of November 30, 2010.
• June 2011 payment – The CRA will review your eligibility as of May 31, 2011.

To be eligible for a particular OSTTB payment, you must meet all of the following requirements on the applicable above‑specified date:

• You must be a resident of Ontario;
• You must be one of the following:
  • 18 years of age or older,
  • married,
  • living common‑law, or
  • the parent of a child under the age of 18 who is living with you;
• You must not have been incarcerated for a period of 90 days or more that includes the specified date; and
• You must have filed a 2009 income tax and benefit return for the June 2010 and December 2010 payments, and a 2010 return for the June 2011 payment.

Note
If you immigrated to Ontario in 2009, 2010, or 2011, special rules apply to you. See Question 16.

3. I am married. Will both my spouse and I get these payments?
No. For each payment period, one OSTTB payment will be issued for your family if you are married or living common‑law. The June 2010 and December 2010 payments will be issued to the spouse or common‑law partner whose 2009 return is assessed first. Similarly, the June 2011 payment will be issued to the spouse or common‑law partner whose 2010 return is assessed first.

4. How much will I receive?
Your family situation on the specified dates mentioned in Question 2 and your adjusted family net income from the applicable return will determine your payment amount. There are two payment rates:

• The family rate applies to you if you have a spouse or common‑law partner, or you are a single parent of a child under the age of 18 who is living with you.
  
  
• The single rate applies to you if you are single, separated, divorced, or widowed, and you are 18 years of age or older and have no child under the age of 18 who is living with you.

Note
The family rate also applies to you if you became a widow after December 31, 2009, or if you are a single parent and your only child, who was under the age of 18, died after December 31, 2009.

Family rate

• If your adjusted family net income is less than $160,000, you will receive the maximum amount of $330 for the first payment and $335 for the next two payments.
• If your adjusted family net income is over $160,000, the maximum amount will be reduced by 5% of your adjusted family net income that is over $160,000.
• If your adjusted family net income is more than $166,600 for the first payment or $166,700 for the second and third payments, you will not receive a payment.

Single rate

• If your adjusted net income is $80,000 or less, you will receive three payments of $100 each.
• If your adjusted net income is over $80,000, the $100 will be reduced by 5% of your adjusted net income over $80,000.
• If your adjusted net income is more than $82,000, you will not receive a payment.

Note
If your calculated payment equals $.01 to $9.99, you will receive a payment of $10.

5. When will I get my OSTTB payment?
Starting on June 10, 2011, the third and final OSTTB payment will be issued to entitled Ontario residents whose 2010 income tax and benefit return was assessed by May 9, 2011. If your 2010 return is assessed after May 9, 2011, your payment will be issued within four to eight weeks after your return is assessed.

If you are entitled to either of the first two OSTTB payments but have not received your payment, please see Question 17 and Question 19.

6. Who will issue the OSTTB payments?
The CRA will issue the OSTTB payments for the Province of Ontario. The CRA administers Ontario’s personal income tax system and has the information to determine who qualifies for the OSTTB payments.

7. How will the OSTTB payments be issued?
The CRA will issue the OSTTB payments by either cheque or direct deposit. If you receive your income tax refund by direct deposit, you will also receive your payments by direct deposit. Otherwise, you will receive your payments by cheque.

8. Do I have to apply for the OSTTB?
You do not have to apply for the OSTTB. As long as you meet the eligibility criteria mentioned in Question 2, you will be issued the applicable OSTTB payments.

9. How will the CRA determine if I am a single parent?
We will consider you a single parent if you are not married or living common‑law and either of the following applies:

• On the specified dates mentioned in Question 2, our Canada Child Tax Benefit registry shows that you have care of a child under the age of 18; or
• You have made a claim on line 367 - Amount for children on the applicable income tax and benefit return.

Note
In a shared custody situation, only the first bullet applies.

10. My ex‑spouse and I share custody of our nine‑year‑old daughter. Neither of us has remarried. Will I receive the OSTTB payments for my child?
There are no OSTTB payments for children. However, the amount of the OSTTB payment you get depends on your family status that is in effect on the specified date. The parent who has the care of the child on the specified date according to our Canada Child Tax Benefit registry will get the family rate for that payment. The other parent will get the single rate for that payment.

The specified dates are:

• June 2010 payment – The CRA will look at who has the care of the child as of May 31, 2010.
• December 2010 payment – The CRA will look at who has the care of the child as of November 30, 2010.
• June 2011 payment – The CRA will look at who has the care of the child as of May 31, 2011.

11. I’m single, I live in Ontario and I gave birth to my first child in August 2010. Will I qualify for the higher OSTTB payment?
For the June 2010 payment, you would only be entitled to the OSTTB payment for single taxpayers. However, after you register your child for the Canada Child Tax Benefit (CCTB), you would be entitled to the higher family rate for the last two OSTTB payments.

12. How do I register my child for the CCTB so that I can receive the family rate for the OSTTB payments?
To register your child, use the CCTB application Form RC66, Canada Child Benefits Application or call the CRA at 1-800-959-2221.

Send your form to the tax centre that serves your area.

For enquiries on registering children for the Canada Child Tax Benefit program, call 1-800-387-1193.

13. If a taxpayer dies during 2010 or 2011, is the estate eligible for the OSTTB payments?
When the date of death is on or after the specified date for a particular payment (see Question 2), the estate of a taxpayer is entitled to that OSTTB payment. Payments issued after the date of death will be issued to the estate.

14. I permanently moved to Ontario from Manitoba in July 2010. Am I eligible for the OSTTB?
You are not entitled to the June 2010 OSTTB payment since you moved to Ontario after May 31, 2010. However, as long as you meet the eligibility criteria on the specified dates mentioned in Question 2, you would be eligible for the remaining two OSTTB payments. If you have not provided the CRA with your new address, see Question 20.

15. I am a student who usually lives in Ontario but I am currently attending a post-secondary educational institution in another province. Am I eligible for the OSTTB payments?
As long as you meet the eligibility criteria mentioned in Question 2, you would be eligible for the OSTTB payments. However, you would not be eligible for the OSTTB payments if you have severed your ties with Ontario and set up a permanent residence outside Ontario (such as obtaining a driver’s licence or health card for your new location).

16. I recently immigrated to Ontario from another country. What special rules apply to me?
If you immigrated to Ontario in 2009, 2010, or 2011, your date of entry will determine which payments you are eligible to receive. You are only eligible for the OSTTB payment(s) with a specified date that is on or after your date of entry to Canada. Also, the eligibility rules in Question 2 apply to you. However, you may also have to submit other forms in order to provide your income for the applicable years.

If you immigrated in 2009, to receive the 2010 payments, in addition to filing your 2009 return, you will have to file Form RC66SCH, Status in Canada / Statement of Income to state your income from January 1, 2009, to the date you entered Canada. If you are married or living common‑law and your spouse or partner resides in Canada, on Form RC66SCH you would also provide your spouse’s or common‑law partner’s income for the same period. If your spouse or partner is a non‑resident, you would provide their income on Form CTB9, Canada Child Tax Benefit - Statement of Income. 

If you immigrated in 2010 and your date of entry makes you eligible for either of the first two OSTTB payments, you will also have to file Form RC66SCH to state your income for 2009. To receive the June 2011 payment, in addition to filing your 2010 return, you will have to file Form RC66SCH for the period from January 1, 2010, to the date you entered Canada. If you are married or living common‑law and your spouse or partner resides in Canada, on Form RC66SCH you would provide your spouse’s or common‑law partner’s income for the same periods. If you are married or living common‑law and your spouse or partner is a non‑resident, you have to provide their income for the same periods on Form CTB9.

If you immigrated in 2011 and your date of entry makes you eligible for the June 2011 payment, you will have to file Form RC66SCH to state your income for 2010. If you are married or living common‑law and your spouse or partner resides in Canada, on Form RC66SCH you would also state your spouse’s or common‑law partner’s 2010 income. If your spouse or partner is a non‑resident, you have to state their 2010 income on Form CTB9.

If you are single but live with your child who is under the age of 18 and you want to receive the family rate for the OSTTB, you will have to register your child for the Canada Child Tax Benefit using Form RC66. For more information, see Question 12.

You can download Form RC66SCH, Form CTB9, and Form RC66, or you can get these forms by calling the CRA forms and publications line at 1-800-959-2221.

Send your form to the tax centre that serves your area.

17. I have not yet filed my 2009 or 2010 income tax and benefit returns. Will I receive my OSTTB payments?
No. To receive the June 2010 and December 2010 OSTTB payments, you must file your 2009 return no later than June 30, 2011. To receive the June 2011 payment, you must file your 2010 return no later than June 30, 2012. In addition, you must meet the eligibility criteria mentioned in Question 2.

After you file your return, you can expect your OSTTB payment(s) four to eight weeks after your return has been assessed.

18. Where can I get the forms I need to file my 2009 and 2010 returns?
The fastest way to get the forms is to download the applicable Ontario income tax and benefit package from the CRA Web site. You can also get the forms by calling the CRA forms and publications line at 1-800-959-2221, or pick them up at your tax services office. The 2010 package is also available at most postal outlets.

19. I met all of the conditions to get an OSTTB payment, but I didn’t receive a payment. What should I do?
If you didn’t receive your OSTTB payment by the end of the issuance month (the end of June 2010 for the first payment, the end of December 2010 for the second payment, and the end of June 2011 for the third payment), call 1-877-627-6645 and an agent will help you.

The service is available weekdays from 8:15 a.m. to 5:00 p.m. local time.

20. My address recently changed—what should I do?
You should provide your new address to the CRA as soon as possible by calling 1-877-627-6645. You can also change your address online by going to My Account. Be sure to tell us the date of your move.

21. Is the OSTTB a taxable benefit?
No. The OSTTB payments are non-taxable.

22. Will the OSTTB payment I receive affect any of my other government payments, such as employment insurance benefits, social assistance payments, or the new Ontario sales tax credit payments?
No. Your OSTTB payment will not affect any other payments you receive.

23. Will there be interest paid or charged on any OSTTB underpayments or overpayments?
No. Interest is not charged or given on any OSTTB overpayments or underpayments.

24. I have an outstanding debt with the CRA and didn't receive my GST credit because I owed money to the government. Will I receive my OSTTB payment?
For payments issued from June 2011 onward, any OSTTB amount you are entitled to can only be applied against a prior OSTTB debt or an amount you owe under the Family Orders and Agreements (FOA) Enforcement Assistance Program. So, if neither of these debts is owed by you, you will receive your full OSTTB entitlement.

For payments issued prior to June 2011, an OSTTB payment could only be applied against a prior OSTTB debt.

However, if you are reassessed and it is found that you received a payment that you were not entitled to receive, or you received more than you were entitled to receive, you must pay back that amount.

Similarly, if you are reassessed and it is found that you received a lower payment than you are entitled to receive, you would be issued the additional amount.

25. Who should I contact if I have a question about Ontario’s policy on the OSTTB?
If you have a tax policy question about the OSTTB program, you can call the Province of Ontario at 1-866-ONT-TAXS (1-866-668-8297).