See Form T1C (ONT.) TC, Ontario Tax, for information about Ontario investment and employee ownership tax credits .

Table of Contents

• New for 1999
• If you have a spouse
  • Involuntary separation
  • Separated or divorced
• Completing a return for a deceased person
• International students
• Were you bankrupt in 1999?
• Property tax credit
  • Occupancy cost
  • Sales tax credit
  • Dependent children
• Ontario home ownership savings plan (OHOSP) tax credit
• Political contribution tax credit

Are you self-employed?

• Co-operative education tax credit
• Graduate transitions tax credit
• Workplace child care tax credit
• Workplace accessibility tax credit
• OHOSP tax credit factor table

New for 1999

The calculations specific to seniors that were on Form T1C (ONT.) Seniors have been integrated into Form T1C (ONT.), Ontario Tax Credits.

The Ontario political contribution tax credit (see page 3) is now a refundable credit, and the maximum has been increased.

The Ontario co-operative tax credit (see page 4) has increased the maximum employment period to 24 months for a qualifying leading edge technology apprenticeship whose employment started after May 4, 1999. With this type of work placement, the resulting tax credit would increase to $6,000.

If you have a spouse

The term spouse includes a common-law spouse as defined on page 10 of the General Income Tax and Benefit Guide. You have to include your net income and the net income of your spouse with whom you lived on December 31, 1999, when you calculate "Income for Ontario tax credits."

If you lived with your spouse on December 31, 1999, either one of you may claim the property, sales, and OHOSP tax credits for both of you. If one spouse is 65 or older, that spouse has to claim the property, sales, and OHOSP tax credits for both of you. Either spouse can claim the Ontario political contribution tax credit. The self-employed spouse has to claim the workplace child care, workplace accessibility, co-operative education, and graduate transitions tax credits.

Involuntary separation

Although you have shown your marital status on your return as married or living common law, you and your spouse may have occupied separate principal residences for part or all of the year for medical, educational, or business reasons. If this is your situation, we will consider you to be "involuntarily separated" during that period for property, sales, and OHOSP tax credit purposes.

If you and your spouse were involuntarily separated at any time in the year, but you lived together on December 31, 1999, one of you has to claim property, sales, and OHOSP tax credits for both of you based on your combined net income for the year. If one spouse is 65 or older, that spouse has to claim these tax credits for both of you.

If you and your spouse were involuntarily separated on December 31, 1999, each of you can claim property, sales, and OHOSP tax credits. Use only your net income when you calculate "Income for Ontario tax credits" and be sure to enter your spouse's address in that section of Form T1C (ONT.).

Separated or divorced

If you and your spouse were separated or divorced on December 31, 1999, each of you can claim Ontario tax credits. Use only your own net income when you calculate "Income for Ontario tax credits."

Completing a return for a deceased person

You can claim the Ontario political contribution tax credit on the return of a person who died in 1999. If the deceased person was self-employed, you can claim on his or her return the workplace child care, workplace accessibility, co-operative education, and graduate transitions tax credits.

You cannot claim the Ontario property and sales tax credits or the Ontario Home Ownership Savings Plan (OHOSP) tax credit on the deceased person's return.

If your spouse died in 1999, you can claim the Ontario tax credits on your return. However, you cannot claim an additional sales tax credit for your deceased spouse. In this situation, use only your net income when you calculate "Income for Ontario tax credits."

International students

If you are a student from another country (visa student) who attended an Ontario educational institution in 1999, you should contact the Canada Customs and Revenue Agency's International Tax Services Office at 1-800-267-5177 or (613) 952-3741 to find out your residency status. If it is determined that you were a resident of Ontario on December 31, 1999, for tax purposes, you may be eligible for Ontario tax credits.

Were you bankrupt in 1999?

If you were bankrupt in 1999, claim your Ontario tax credits on the last return you file for the year, but be sure to include your net income and the net income of your spouse with whom you lived on December 31, 1999, for the whole year when you calculate "Income for Ontario tax credits."

The bankruptcy trustee may claim the co-operative education, graduate transitions, workplace child care, and workplace accessibility tax credits if you were eligible for the credit(s) during the period when the trustee acted on your behalf. Your property tax credit claim is based on your occupancy cost for all of 1999. Your political contribution tax credit is based on contributions made during all of 1999.

Property tax credit

You can claim this credit if all of the following conditions apply:

• you were a resident of Ontario on December 31, 1999;
• rent or property tax on a principal residence in Ontario was paid by or for you in 1999; and
• you were 16 or older on December 31, 1999.

A principal residence is a housing unit in Ontario that you usually occupy during the year. It can be a house, apartment, condominium, hotel or motel room, mobile home, or rooming house. A principal residence does not include a residence exempt from property tax.

You cannot claim this credit if you were under 19 on December 31, 1999, and you lived with someone who received a Canada Child Tax Benefit payment for you in 1999.

Receipts - Do not attach property tax or rent receipts to your return. If you are using EFILE, show your receipts to your EFILE service provider. In either case, keep them in case we ask to see them.

Occupancy cost

If you were a homeowner, occupancy cost is the property tax paid in Ontario on your principal residence in 1999. If you rented, occupancy cost is 20% of the rent paid in Ontario in 1999.

If you were a farmer, base your occupancy cost on the property tax, or on the rent paid, for your principal residence and one acre of land. If you lived in a mobile or modular home that you owned, and it was situated on leased land, base your occupancy cost on either the property tax paid (the property tax for the home and lot), or on the rent paid (20% of the total of rent paid for the land and property tax paid for the home).

Your occupancy cost has to cover the period you lived in your principal residence.

Your occupancy cost cannot include amounts such as:

• payments to relatives or friends, unless they report the amounts as rental income on their returns;
• property tax or rent paid on part of a home you used for rental or business purposes; or
• property tax or rent paid on a second residence, such as a cottage, if you claimed property tax or rent on your principal residence for the same period.

If you and your spouse lived together on December 31, your occupancy cost is based on the total rent or property tax paid during the year, including amounts paid by each spouse during a period of separation.

If you and your spouse separated during the year and lived apart on December 31, your occupancy cost is based on your share of the rent or property tax for the part of the

year before the separation, plus your own rent or property tax after the separation.

If you lived in a nursing home, hospital, charitable institution, group home, or a similar institution, and the institution paid full municipal and school taxes, your occupancy cost must not include any accommodation subsidy paid by a government agency.

If you shared a principal residence with one or more persons (other than your spouse), your occupancy cost is based on your share of the rent or property tax you paid for the year.

College residence - If you lived in a designated Ontario university, college, or private school residence, you can claim only $25 as your occupancy cost for the part of the year you lived in such a residence. To find out if your residence is designated, contact your residence administrator or the Ontario Ministry of Finance at the address or numbers listed on the Information Sheet for Residents of Ontario.

Sales tax credit

You can claim this credit if all of the following conditions apply:

• you were a resident of Ontario on December 31, 1999;
• you were 16 or older on December 31, 1999; and
• no one else claimed an Ontario sales tax credit for you.

You cannot claim this credit if either of the following conditions apply:

• you were under 19 on December 31, 1999, and you lived with someone who received Canada Child Tax Benefit payments for you in 1999; or
• you were confined to a prison or a similar institution on December 31, 1999, and you were there for a period of more than six months during 1999.

Dependent children

You can claim a sales tax credit for your dependent child if you are the parent (legal or in fact) of that child, and all of the following conditions apply:

• the child was born in 1981 or later;
• the child lived with you in 1999; and
• the child was resident in Canada in 1999.

A child for whom anyone claims an equivalent-to-spouse amount on line 305 of the return may be a dependent child. However, a child for whom anyone claims a spousal amount on line 303 of the return or receives an amount under the federal Children's Special Allowances Act is not a dependent child.

Only one person can claim a sales tax credit for a dependent child. Enter at box 6099 the number of dependent children you have.

Ontario home ownership savings plan (OHOSP) tax credit

As a planholder, you can claim this credit if all of the following conditions apply:

• you were a resident of Ontario on December 31, 1999;
• you were 18 or older on December 31, 1999;
• you made contributions to a plan in 1999; and
• your net income is less than $40,000.
  If you have a spouse, or if you are claiming an equivalent-to-spouse amount, your combined net income has to be less than $80,000.

You cannot claim this credit if you closed your plan without buying a home.

Your claim is based on contributions made during the first five calendar years of a plan, starting with the calendar year in which you opened your plan.

If you lived with your spouse on December 31, 1999, only one of you can claim the OHOSP tax credit for both of you based on contributions made to your and/or your spouse's plan. If you bought a home in 1999, you can claim a tax credit for contributions you made to your plan up to the date of the home purchase.

Calculate your claim on Form T1C (ONT.). Use the OHOSP tax credit factor table on page 6 of this information sheet to determine the tax credit factor, and enter the factor on line 25 of Form T1C (ONT.).

Receipts - Attach to your return the official T1C-OHOSP receipts for qualifying contributions, issued by the financial institution where you have your plan. If you are using EFILE, show your receipts to your EFILE service provider.

Political contribution tax credit

You can claim this credit if you were a resident of Ontario on December 31, 1999, and you contributed to a registered Ontario political party or constituency association, or to a candidate in an Ontario provincial election.

Only claim contributions you made during 1999. You or your spouse can claim the credit, but a contribution cannot be divided between both of you if only one receipt was issued.

Enter your total contributions on line 19 of Form T1C (ONT.). Use the chart below to calculate your credit, and enter the result on line 20.

Ontario political contribution tax credit
Contributions of $300 or less:
Total contribution	________	× 75% =	______	A
Enter the result on line 20.
Contributions of more than $300, but not more than $1,000:
Total contribution
On the first	- 300.00	the credit is	225.00	B
On the rest	=	× 50% =	+	C
Add line B and line C.			=	D
Enter the result on line 20.
Contributions of more than $1,000, but not more than $2,275:
Total contribution
On the first	- 1,000.00	the credit is	575.00	E
On the rest	=	× 33.33% =	+	F
Add line E and line F.			=	G
Enter the result on line 20.
Contributions of more than $2,275: Enter $1,000 on line 20.

Receipts - Attach official receipts to your return.
If you are using EFILE, show your receipts to your EFILE service provider.

Are you self-employed?

The credits that follow apply only to self-employed individuals. Include the amount of credits claimed for 1999 as income on your 1999 return. Do not attach documents relating to these claims to your return. If you are using EFILE, show them to your EFILE service provider. In either case, keep the documents in case we ask to see them.

For more information about these credits, contact the Ontario Ministry of Finance at the address or numbers listed on the Information Sheet for Residents of Ontario.

Co-operative education tax credit

If, before January 1, 1998, you hired co-op students enrolled in an Ontario university or college, you may be able to claim a tax credit equal to 10% of eligible expenditures.

If, after December 31, 1997, you hired co-op students enrolled in an Ontario university or college, or students or apprentices enrolled in qualifying leading-edge technology programs in an educational institution in Ontario, you may be able to claim a tax credit from 10% to 15% of eligible expenditures incurred.

Eligible expenditures are salaries, wages, and other remuneration you paid to a student in a qualifying work placement, or payments made to an eligible educational institution or a placement agency for a qualifying work placement. The student must work at a permanent establishment of the employer in Ontario.

Claim - The credit must be claimed in the tax year in which the qualifying work placement ends, to a maximum of $1,000 for each four months of employment, with a minimum employment of ten weeks. The maximum employment period is as follows:

• no limit for co-op work placements other than internships;
• 16 months for co-op internships, for qualifying leading-edge technology work placements other than apprenticeships and for qualifying leading-edge technology apprenticeships whose employment started before May 5, 1999; and
• 24 months for qualifying leading-edge technology apprenticeships whose employment started after May 4, 1999.

For qualifying work placements that started before January 1, 1998, claim 10% of eligible expenditures for the qualifying employment.

For qualifying work placements that started after December 31, 1997, if the total of salaries and wages paid in the previous tax year was:

• $600,000 or greater, claim 10% of eligible expenditures for the qualifying employment;
• not greater than $400,000, claim 15% of eligible expenditures for the qualifying employment; or
• greater than $400,000 but less than $600,000, calculate your claim using the chart on page 5.

Enter your claim on line 29 of Form T1C (ONT.).

For more information, get Information Bulletin CETC-1, Co-operative Education Tax Credit, from the Ontario Ministry of Finance.

Documents - The educational institution will provide you with a certificate for each qualifying co-op educational work placement, a completed voucher, or a copy of the Contract of Apprenticeship for each qualifying leading-edge technology or apprenticeship work placement.

Graduate transitions tax credit

If you hired an unemployed Ontario post-secondary graduate for a minimum of six months, you may be able to claim a tax credit from 10% to 15% of eligible expenditures for graduates hired.

Eligible expenditures are salaries, wages, and other remuneration you paid to the post-secondary graduate in the first 12 months to work at a permanent establishment in Ontario.

Claim - The maximum credit is $4,000 for each new graduate hired. You must claim the credit on your 1999 return if the qualifying employment ends in 1999 or the first 12-month placement period ends in 1999. If the total of salaries and wages paid in the previous tax year was:

• $600,000 or greater, claim 10% of eligible expenditures for the qualifying employment;
• not greater than $400,000, claim 15% of eligible expenditures for the qualifying employment; or
• greater than $400,000 but less than $600,000, calculate your claim using the chart on page 5.

Enter your claim on line 30 of Form T1C (ONT.).

For more information, get Information Bulletin GTTC-1, Graduate Transitions Tax Credit, from the Ontario Ministry of Finance.

Documents - You will need:

• the post-secondary graduate's résumé or application for employment and social insurance number (SIN);
• a copy of the post-secondary degree, diploma, or certificate verifying the type of degree conferred and the date of graduation; and
• a statement signed by the post-secondary graduate attesting to the fact that he or she meets the eligibility criteria for the credit.

Workplace child care tax credit

If you created additional licensed child care facilities or improved existing facilities (and are not in the business of providing child care), you may be eligible to claim a credit of 5% of qualifying expenditures incurred after May 5, 1998.

Qualifying expenditures are:

• capital costs of the construction of new on-site licensed child care facilities in Ontario, or capital renovations of existing child care facilities in Ontario;
• capital costs of the purchase of certain equipment fixed to the child care facility; or
• contributions made by a business to an unrelated entity that are used to fund the capital cost of new licensed child care facilities in Ontario, or capital renovations of existing child care facilities in Ontario.

Claim your credit on line 31 of Form T1C (ONT.).

For more information, get Information Bulletin WCCTC-1, The Workplace Child Care Tax Credit for Unincorporated Businesses, from the Ontario Ministry of Finance.

Workplace accessibility tax credit

If you hired an eligible person with a disability, you may claim a credit of 15% of eligible expenditures incurred in Ontario in 1999 to accommodate that person.

Eligible expenditures are:

• interview costs for the prospective employee, such as fees paid to a sign language interpreter or intervener who assists in the job interview; and
• "qualifying expenditures" to a maximum of $50,000 per employee.

Qualifying expenditures include:

• during the three months before employment, and during the first twelve months of employment:
  • expenditures allowed as deductions under paragraphs 20(1)(qq) (disability-related modifications) and 20(1)(rr) (disability-related equipment) of the Income Tax Act; and
  • expenditures incurred to get certain devices or equipment needed by the employee to work;
• during the first six months of employment: expenditures incurred to provide a job coach, a note taker, a sign language interpreter, or an intervener;
• for up to twelve months after the start of employment: costs to train the employee or co-workers to use a device or equipment acquired for the impairment.

Use the following formula to calculate the credit for each employee: (interview costs + qualifying expenditures) × 15% = workplace accessibility credit.

Enter the eligible expenditures on line 6334, and claim your credit on line 32 of Form T1C (ONT.).

For more information, get Information Bulletin WATC-1, The Workplace Accessibility Tax Credit for Unincorporated Businesses, from the Ontario Ministry of Finance.

OHOSP tax credit factor table

To determine your tax credit factor, use the amount from line 21 of Form T1C (ONT.), Ontario Tax Credits.

[View OHOSP tax credit factor table]