Tax Tips & Advice

Can you claim rent in Ontario? Yes, but there have been some changes. Read on…

35 Comments 05 March 2012

In previous years, Ontario residents were able to claim the rent or property tax they’d paid when completing their income tax returns, and received a credit that either increased their refund or reduced the amount they had to pay.

There have been some changes for the 2011 tax year. Instead of claiming rent directly on your tax return, these credits will be paid out on a monthly basis as part of the Ontario Trillium Benefit. This benefit is a combination of the Ontario Sales Tax Credit (OSTC), Energy and Property Tax Credit (OEPTC), and Northern Ontario Energy Credit (NOEC).

What does that mean to eligible Ontarians?

On the 2011 tax return, individuals will apply for the benefits, called the Trillium Benefit, which will be paid out starting in July 2012. (Don’t worry, TurboTax ask the appropriate questions and do the work for you.) If you’ve collected the rent or property credit in then you’ll notice that this year none of these credits appear on the return itself. That means you’ll likely notice a reduced refund or increased balance due as compared to previous years.

How do you claim the new credit?

The application for the benefits does require that the individual enter the amount of rent or property taxes that paid in 2011, as this is the basis of the calculation CRA will do in determining the amount of credit to which they are entitled.

For more information, please visit the Ontario Revenue Agency’s information page {here}.

 

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Your Comments

35 Comments so far

  1. Donna says:

    how will it affect my income tax if I’m collecting room and board from my son and his girlfriend?

  2. Nikole at TurboTax says:

    Hi Donna – Are you collecting room & board for the purpose of earning income? Or are you just sharing the expenses of the home with your son & his girlfriend? If you are simply splitting the house expenses with your them, then you do not need to include the income on your return; and of course if you’re not claiming any income from the rental than you can not claim any expenses. If you are earning income from your them, then you are required to fill out a T777 form where you can deduct part of your maintenance costs such as heating, home insurance, electricity, and cleaning materials. You can also deduct a part of your property taxes, mortgage interest, and CCA.

  3. Carol says:

    Are you allowed to claim rent receipts that are paid out by the ministry of community and social services ontario disability support.

  4. Nikole at TurboTax says:

    Hi Carol – No rent is allowable.

  5. Lori says:

    can you claim food and home improvements if you have room and board income?

  6. Nikole at TurboTax says:

    Hi Lori – Are you renting out a room in your home for the purpose of earning income? Or are you just sharing the expenses of the home with your renter?

    If you are earning income from your rental, then you are required to fill out a T777 form where you can deduct part of your maintenance costs such as heating, home insurance, electricity, and cleaning materials. You can also deduct a part of your property taxes, mortgage interest, and CCA.

    If you are simply splitting the house expenses with your renter, then there are no eligible tax deductions you can include on your income tax return.

  7. Bobby says:

    need clarification. I rent and I’m not claiming any of the OEPTC/NOEC/OSHPTG, so my ON-BEN should just have my total 2011 rent amount on line 6110… and nothing else on that form…. correct? And I will get some $ for this monthly from July 2012 to Jun 2013? Thanks.

  8. Nikole at TurboTax says:

    Hi Bobby – If that is the only amount you are claiming, that that would be the only line filled out on the ON-BEN form. Thanks!

  9. Latasha says:

    Hi I have a question. I didn’t clam rent last year and I rent and I’m still getting the checks for energy and property tax. Will I get the check starting in July or do I have to fill out a serpent form?

  10. Nikole at TurboTax says:

    Hi Latasha – Did you complete your income tax return? That is what would start the application…otherwise you would have had to fill out an application off the Ontario government’s website.

  11. Jeremy says:

    I paid almost $12 000 in rent last year. Where do I claim this on my tax return? What line? I have looked everywhere and me being a low income single full time parent, I assume that will help my monthly trillium payment.

    THanks guys

    Jeremy

  12. OC says:

    I am renting a house and my son helps to pay the rent, he claimed rent on his income tax and put the name of the my landlord on his inconme tax. Is that correct? should it be my name? I did not claim any rent income as his payment went were included in my rent payment.

    Thank’s,
    OC

  13. Sanddy says:

    Hello, please I rent a basement in Ottawa. there is a form I should feel out to claim tax credit for the rent I pay.
    Please could you tell me which form it is and where would I get it?

    Thank you in advance for your kind answer.

    Sandy.

  14. Lorn says:

    Can I claim rent on my taxes as I have a home office ? And work from home ? Also my car loan required to do my job As I use it to travel from site to site

  15. Amber says:

    I have been renting out a bedroom in my private principle residence in a shared accommodation situation for several years as a way to help pay the mortgage/bills/maintenance on the house. The boarder has access to the rest of the house, including the kitchen, bathrooms, laundry room, etc. I do not issue receipts. Since I use the income to pay for housing expenses, I never declared it as income (and never declared expenses, either). I have been told by others who similarily rent out a bedroom in their principle residences that since it is shared accommodation where kitchen/baths are shared, it’s not considered taxable income. Now, I’m confused. I have a hostile neighbour who says he will report me to CRA, and I’m worried that I might be liable for taxes on past income. Any thoughts?

  16. Kassandra says:

    Hello, I live and work at a Motel, I have a fixed salary that is quite small, every year it’s the same and I’m well below the poverty line here in Ontario. My room is included in my salary so there is no rent handed out. My mom came to stay with me and because I can’t afford to support her she gives me money, it’s not rent since I don’t technically pay rent, it’s to help with the cost of her basic needs. She has been unable to find work and has had to except Ontario works. My question is this: Do I have to claim the money she gives me as an income? Do I have to claim it at all? I’m confused and nervous since I’m poor and was told by a friend that I will end up owning money to the IRS.

  17. Gabby says:

    Hi, I’m living with my roommates in an apartment. When we sign rental agreement they put down only their names without mine because I wasn’t available to be there and they didn’t say to landlord that I will be living too. I paid my part of rent every month. My question is: if my names is not on rental agreement can I still claim my rent for the last year 2012? I have all checks.

    Thank you

  18. Aaron P says:

    I rent out two rooms to roommates. The amount i get from both of them does not cover my mortgage. Is this still considered income and do i have to claim it?

  19. Ron says:

    if you’re salary was about about 80k, before taxes..
    will the rent entry will have any affect on my tax return?

  20. Eric at TurboTax says:

    Hi Ron, thanks for your question. Ontario bases the property tax portion of the Ontario Trillium Benefit on income and earning 80K does exceed the limit for which you receive the benefit.

  21. Eric at TurboTax says:

    Hi Aaron, thank you for your question. Are you renting these rooms out to make a profit, or are you simply renting them out and using the income to pay for the portion of the utilities the roommates use? If you’re out to make a profit and charging the fair market value for the rooms, than yes it is considered income and you need to report it. However, if you’re renting below fair market value then there’s no profit for you, and you do not need to claim it as income. See: http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-e.html#P560_53022

  22. Eric at TurboTax says:

    Hi Gabby, thank you for your question. The only two provinces that allow any kind of credit or benefit from rent are Manitoba and Ontario. In Manitoba, only one person can claim the education property tax credit for the residence for the entire period during which you shared the accommodation. See: http://www.cra-arc.gc.ca/E/pub/tg/5007-pc/5007-pc-12e.html#P273_29417. If you live in Ontario, you enter your share of the rent paid for the year. See: http://www.cra-arc.gc.ca/E/pub/tg/5006-pc/5006-pc-12e.html#energy_property_tax_credit

  23. Eric at TurboTax says:

    Hi Kassandra, thanks for your question. No, you don’t need to claim the money your mother gives you as income. The reason for this is that you’re using the money to help provide her with her basic needs, so you’re not making profit from it.

  24. nancy scott says:

    I am a non native who paid rent in a home on a reserve to native owners…can I claim my rent and how does this affect my other tax credits. I am low income…and have spousal support income..ty

  25. Junior says:

    HI i lived in toronto until July 2012 and paid rent. Now that i moved to NB, there is no such thing as claiming your rent. How do i claim the rent i paid in toronto from January until July?

  26. Clint at TurboTax says:

    Hi Junior – You won’t be able to claim the rent paid for those few months. Since you will be filing your 2012 return as a resident of New Brunswick, their provincial credits are applicable to you.

  27. Peter Damian says:

    Hey, Im Trying to understand this but im still a little confused, So I pay rent to my landlord who does include it in his income tax. And I Do have a receipt for all the rent I have paid this year, am I able to get any type of tax credit for this?
    Thanks Pete

  28. Becky says:

    I’m from Ontario and I’m a live in nanny so I have to pay room and board every month. Can I claim this on my income tax return? Is it the same thing as rent/do I input my info in the same place as rent? Do I need a slip or form from my employer?

  29. Clint at TurboTax says:

    You can claim the rent. It should be included in your yearly application for the Ontario Trillium Credit.

  30. josie says:

    Hi there,
    What is the approx % return on declaring rental expense. For example if i claim i paid $1000 a month and i earned less than $20000 for the year – what percentage of the $1000 expense is beneficial to me?
    josie

  31. Laurie says:

    I pay rent for a room in a house for my son who is attending university. Can I claim the rent I am paying or do I have to be the one living in the house? I am claiming his transferred tuition amounts but he will still be filing a return to get the HST tax credit.

  32. Salim khan says:

    Hi there,
    I have a quick question for you.Do Int. students can claim tax from tuition payments and room rental in Ontario?
    I’ve paid $10000 in tuition and $5000 room rent.Can You PLEASE give me an estimate,in case I’m allowed to claim my tax back.

  33. Clint at TurboTax says:

    @Laurie – You can’t claim the rent you are paying for your son’s room.

  34. michelle says:

    i live in toronto ontario canada and am on odsp where do i put the rent ive paid for 2012


Trackbacks/Pingbacks

  1. Paid rent in Ontario last year? Get some tax credit | TurboTax Canada Blog - March 5, 2012

    [...] Caroline at TurboTax | April 8, 2010 in Tax tips & advice | (5) *Please note that there have been changes to how rent is claimed in Ontario in 2011. You can read about those changes here.* [...]

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