*Please note that there have been changes to how rent is claimed in Ontario in 2011. You can read about those changes here.*
Plenty of Canadian taxpayers are aware of the homebuyers’ tax credit. But did you know you might be entitled to tax credits for renting a residence in Ontario?
The Canada Revenue Agency knows it costs a lot to keep a roof over your head. This is why Ontario residents can claim the Property Tax Credit and receive some savings.
No matter how much you paid in rent, if you were an Ontario resident on December 31, 2009 over the age of 16, you’re entitled to a tax credit. If you shared housing accommodations, you and your roommate – or roommates – can each receive tax savings. Each can claim credit based on the portion of the rent paid.
Ontario renters under 65 will receive the lesser of $250 or 20 percent of the rent. For Ontario renters above the age of 65, the maximum credit increases to $625.
Ontario residents might also benefit from the option to combine the Property Tax Credit with the Sales Tax Credit. This maxes out at $1,000 for people under 65 and $1,125 for people over 65.
With this in mind, be savvy with your tax return and make sure you claim the rent credit you deserve.