The following is reprinted directly from the Ontario Ministry of Energy website. To go directly to their website to read the article in full and to find additional information CLICK HERE
The Ontario Energy and Property Tax Credit will provide low- to middle-income families and single people with additional relief for the sales tax on energy and for property taxes, beginning with the 2011 tax year.
Can I claim the credit?
In general, people with low- to middle-incomes who pay rent or property tax for their principal residence in Ontario may be eligible for the credit. People living on reserves or in public long-term care homes may also be eligible for the energy portion of the credit.
How much can I get?
The amount of the credit will depend on your individual situation. The maximum Ontario Energy and Property Tax Credit for 2010 is $1,025 for seniors (up to $825 in property tax relief and up to $200 in relief for the sales tax on energy) and $900 for non-seniors (up to $700 in property tax relief and up to $200 in relief for the sales tax on energy).
The credit is based on your adjusted family net income and the amount of rent or property tax that was paid for your principal residence for 2010. It will be reduced by two per cent of your adjusted family net income over $20,000 for single non-seniors, $25,000 for single seniors and non-senior families, including single parents or $30,000 for senior couples.
For example, for a single senior with adjusted family net income of $27,000, the maximum Ontario Energy and Property Tax Credit will be: $1,025 – [0.02 × ($27,000 – $25,000)] = $985. Note that the credit reduction calculated in this example is based on the individual being eligible to receive the maximum combined credit of $1,025.
To calculate the amount of the Ontario Energy and Property Tax Credit you may be eligible to receive, please visit the Ontario Tax Savings Calculators at CLICK HERE
How do I apply?
The credit for the current year will be based on the information reported on your previous year’s income tax return, so you have to file a return to receive this credit.
To apply for the 2010 and 2011 credits, a 2010 tax return must be filed, and you are required to report the amount of property tax, rent or other relevant amounts that were paid by or for you for 2010.
You (and your spouse or common-law partner) should file your 2010 tax return(s) promptly to ensure timely delivery of this credit. The information you provide on your 2010 return(s) will determine the amount of Ontario Energy and Property Tax Credit you will receive for 2010, and will also determine the amount of the 2010 credit you will receive in four payments beginning in 2011.
For 2010, the credit will be paid as a lump-sum either as part of the 2010 tax refund or to reduce any income tax that you owe, provided a 2010 income tax return is filed. Timing of the payment will vary, depending on when you file a 2010 income tax return