An OTB notice is an email or letter from the Canada Revenue Agency (CRA) concerning your Ontario Trillium Benefit (OTB) payments, informing you of your benefit approval, the need to repay a specific amount or the increase or decrease in your benefit payments.
If you are already receiving OTB benefits, the CRA may send you an OTB notice via mail or email to notify you of any changes in your current circumstances that could affect your eligibility. It is very common to receive an OTB notice in Ontario from the CRA.
In this blog post, we will provide you with a clear understanding of an OTB notice and why you might have received one.
Key Takeaways
- An OTB notice provides updates or requests for additional information regarding your Ontario Trillium Benefit (OTB) payments.
- If you receive an OTB notice, you’ll probably need to access your CRA account to find more details about your benefits.
- The OTB program encompasses three benefit programs, each with its own set of eligibility criteria. Your OTB payment amounts may vary depending on which benefit you are eligible for, ranging from $25 for individuals to $690 for families.
Why Did I Get An OTB Notice?
There are several reasons why you may have received an OTB notice from the CRA. Here are some general reasons why you may have received an OTB notice in your mail:
- If your OTB application is being processed: If you applied for the OTB benefit and your application is still being processed, you may receive an OTB notice with updates on your application process.
- If your OTB application has been accepted or denied: If you applied for the OTB, you may receive an OTB notice with the decision.
- If you owe money back to the CRA (OTB clawback): If you were overpaid, you will receive an OTB notice on why the clawback is happening and how much you owe the CRA.
- If there are any changes to OTB benefit payments: If there have been any recent changes to your OTB payments, you will receive an OTB notice explaining the changes in your OTB payments.
- If there are any increases or decreases in your OTB payments based on your status: If there has been any change that affected your eligibility status causing an increase or decrease in your OTB payments, you will receive an OTB notice explaining the changes.
There may be other reasons for your OTB notice, but it likely has to do with one of the above situations.
What Should I Do If I Receive An OTB Notice?
Upon receiving an OTB notice from the CRA, your initial action should be to log in to your CRA My Account. Regardless of the nature of the notice, it will contain pertinent details visible in your CRA account, making it crucial to verify and update your information promptly.
If the notice contains inaccuracies, you should log into your CRA My Account. For example, the notice may incorrectly state a change in your personal circumstances that has not occurred.
Once logged in, you can review the information on record and rectify any discrepancies. Alternatively, you can locate contact information for the relevant person or department that can assist you in updating the information.
In cases involving clawbacks, accessing your CRA account is essential for addressing the situation.
Repaying Your OTB Benefits
You may find yourself in a situation where you are required to repay your Ontario Trillium Benefit (OTB) benefits. This typically occurs due to changes in eligibility criteria.
For example, if you’ve recently moved from a far northern area of Ontario, where the Northern Ontario Energy Credit applies, to a more southern location or outside the province, adjustments to your benefits will follow. Although these changes take time to process, you might receive a notice asking you to reimburse funds provided after your move.
Another circumstance that could trigger a repayment obligation involves the method by which you receive your OTB payments. If you initially chose a lump sum payment and later experience certain life events, the CRA may revoke this option. This could happen if you move to another province (outside of Ontario), declare bankruptcy, are incarcerated for 90 days or more, or pass away.
In such cases, expect to receive an OTB notice explaining why a lump sum payment won’t be issued. Retroactive payments will be directed to your spouse or partner, and future payments will be issued to them on a monthly basis.
Regardless of the circumstances leading to repayments, you can conveniently access information on repayment options by logging into your CRA account. Alternatively, find details on how to contact the Canada Revenue Agency here.
What is OTB?
The Ontario Trillium Benefit (OTB) is a refundable tax credit funded by the Ontario government to help low- and moderate-income residents with their energy, property, and sales tax costs. The benefit is disbursed through the Canada Revenue Agency.
In Canada, OTB combines the Ontario Energy and Property Tax Credit (OEPTC), the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit into a single monthly or yearly payment.
1. Ontario Energy and Property Tax Credit (OEPTC)
The Ontario Energy and Property Tax Credit (OEPTC) is a tax-free payment that assists Ontario residents with their property taxes and sales taxes on energy costs.
The credit helps low- and moderate-income Ontario residents offset property tax payments and the sales tax they should have paid on energy costs.
To be eligible, you must be 18 years or older and lived in Ontario till December 31st of the previous year. You must be a parent living or has lived with their child, a person currently or previously lived with a spouse or common-law partner, and has paid money towards living expenses in Ontario for the past year.
Ontario residents aged 18 to 64 are eligible for up to $1,065, while those aged 65 and above could receive up to $1,247. Those who live on reserves or in public long-term care could receive up to $243.
2. Northern Ontario Energy Credit (NOEC)
The Northern Ontario Energy Credit is a tax-free credit benefit to low- and moderate-income Northern Ontarians who face higher home energy costs. The credit helps them offset the higher cost of energy in the North.
To be eligible for this credit, you must live in one of the following places: Algoma, Kenora, Manitoulin, Cochrane, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay, or Timiskaming.
Also, you must be over 18 years old, a parent living or has lived with their child, a person currently living or has lived with a spouse or common-law partner, and have paid money towards living expenses in Ontario for the past year.
Eligibility for the Northern Ontario Energy Credit depends on where you reside on the 1st day of each month. You could receive up to $158 as an individual and a maximum of $243 as a family.
3. Ontario Sales Tax Credit (OSTC)
The Ontario Sales Tax is a tax-free benefit that assists Ontario residents with the sales tax they pay. The benefit is aimed at offsetting the sales tax Ontarians pay on purchasing goods and services. It is similar to the federal GST/HST credit.
To be eligible, you must be over 19 years old, a parent living or has lived with their child, or a person currently living or has lived with a spouse or common-law partner.
You don’t need to apply for this credit. It is based on your previous income tax return. The CRA automatically assesses whether you are eligible and notifies you accordingly.
You could receive up to $316 as an individual and an additional credit of up to $316 for your spouse or common-law partner and each dependent child under the age of 19.
Final Thoughts on OTB Notice
Applying for the Ontario Trillium Benefit (OTB) is a straightforward process. You only need to file your personal income tax return with a completed ON-BEN Application Form to apply. The CRA uses this to determine your eligibility and entitled credit amount.
Whenever there are any changes in your current situation, be prepared to get an OTB notice from the CRA, then you can update the changes in your account.
FAQs on OTB Notice
Does everyone get Ontario Trillium Benefit?
Anyone eligible for the Ontario Trillium Benefit (OTB) must be a resident of Northern Ontario on December 31st, 2021, and 18 years of age or older, currently or previously had a spouse or common-law partner.
What does OTB notice mean from CRA?
The CRA usually sends an OTB notice to notify you of any changes in your current situation that could affect your eligibility for the Ontario Trillium Benefit (OTB).
Why did I get an OTB notice?
If any recent change in your life can affect your eligibility, such as marriage or relocation, you will receive an OTB notice from the CRA.
