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Originally posted by cdn_001

Hi all
I have a question about Ontario Property and sales tax credit.My wife did not have any income in 2009 and we don't own house.So we applied for this credit in her return.

We are getting around $300 if we only complete the property tax credit section.But when we complete the sales tax credit section on the next page,we are getting $0(Negative value).

Can I claim only for Property tax credit in my wife return and not claim Sales tax credit?

Thanks

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Most of these 'Tax Credits' have a 'salary cut off' associated with it. If the adjusted Family NET Income goes above a certain salary, then they will not provide you with Sales tax credit. If you are over 65 then they will provide you with a slight relief in your property taxes. If you are aged below 65 then they will try and eliminate the benefit.

If you only fill one half of the Ontario Tax section, Their computers will pick it up and complete the rest and will bring the credits to NIL automatically as it is based upon the NET Family Income.

To get to know the Whole Tax system here in Canada and have a thorough knowledge of the tax system you will have to study the system once, and see the concept upon which it is based. Also get to know the cut off levels, The claw back levels etc., and they change every year and the Publications will indicate to you all of these if you keep your eye balls peeled open. Alternately see the preamble of some of the tax programs and they detail to you 'in the video form' and provide you with the highlights for the current year. It might not make any sense the first time. So, go back and see it a second time and pay close attention to it then.

In your case, you will only get ZERO amount for the property tax credit and also for the Sales tax credit. Some times the low income earner can claim some of the benefits. if you do, the tax system as currently exists will take that amount plus an additional thirty bucks off yours or your tax burden will increase by that amount that which the spouse will get.

You can never win in this tax system. It is biased in Governments favour. As we say " Six of one and half a dozen of the other"....

Freddie.