Tax Tips & Advice

Claim rent and receive a tax credit

4 Comments 03 March 2010

Did you pay rent in 2009? Do you live in Ontario, Manitoba, or Québec? If you can answer yes to both of these questions, you might be receiving some tax credit soon.

Many people know about the homebuyers’ tax credit, but the potential tax credit for paying rent is a lesser known benefit. This is probably because paying rent does not affect federal income taxes.

Since the tax credit is only open to residents of the aforementioned provinces, your chances of receiving it might be small but the savings could be big.

Any taxpayers above the age of 16 who were Manitoba residents on December 31, 2009 and paid more than $1,250 in rent are eligible to claim the Education Property Tax Credit. But roommates should be warned that only one person can claim this amount on their tax returns.

Manitoba residents can find some considerable cash savings with this tax credit. Renters under the age of 65 can receive credit for up to $675, with a minimum saving set at $650 depending on income. For residents over the age of 65, the minimum amount does not change, but you might earn up to $800 in credit.

The Education Property tax credit in Manitoba is akin to the Property Tax Credit in Ontario. If you were a rent-paying Ontario resident above the age of 16 on December 31, 2009 you can claim this tax credit.

Ontario renters under 65 will receive either $250 or 20 percent of the rent paid – whichever is less. For Ontario renters above the age of 65, the maximum credit increases to $625. An additional benefit for Ontario residents is 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. Again, this credit depends on your level of income so the more you earn, the credit gets smaller.

Last but not least, renters in Québec stand to gain tax credits thanks to the Relevé 4. Québec renters who were residents on December 31, 2009 should receive a Relevé 4. This will include information about your December rent and your portion of property taxes. The maximum property tax refund available is $602 for 2009.

Hopefully, this insight will help renters receive every penny they deserve this tax season.

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Your Comments

4 Comments so far

  1. Natali says:

    Hi.
    I live in Ontario.
    I made $6180 in 2011 as a self employed and paid rent $2458.00, but the rent does not effect my tax refund. Why?
    Best regards,
    Natali.

  2. Serhat says:

    The energy encfciefiy tax credit is technically non-refundable which means at the end of the year, you can’t get back more in credits than you paid to the government in taxes throughout the year.The home improvement energy tax credit is a nonrefundable income tax credit so if you do not have any federal income tax liability on your 1040 tax form page 2 line 44 you would not get any of the credit amount back as a refund.If you have a federal income liability on the Line 44 the nonrefundable credit amount that you qualify for would be used to reduce your income tax liability amount.If the federal income tax liability amount is less than your qualified home improvement project is less than your qualified energy credit amount it would reduce your tax liability amount to -0- on the page 2 Line 55.

  3. Cati Carnovale says:

    Can I claim the Ontario Entergy and Property Tax Credit for rent that I paid in 2011 and 2010?

  4. Clint at TurboTax says:

    You would need to file a T1-Adjustment request for the 2010 and 2011 tax returns. You can’t claim those amounts on the 2012 return. http://www.cra-arc.gc.ca/E/pbg/tf/t1-adj/README.html


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