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Used to live with my parents for 7-8 years. They owned the house and it was their principal residence and they paid the property tax.
I did not own the house. But we split the property tax amongst ourselves to claim the Ontario Trillium Benefits.
Say the property tax was $3,000. My parents would show the property tax as $2,000 and I would show it as $1,000/-. So as a family we did not claim more. Based on that we got our OEPTC.
Now I realised that because I did not own the house, I was not entitled for the OEPTC part of the OTB. I was still entitled to the OSTC part of the OTB.
How do I return this OEPTC back? Can I just call them and tell them and pay it back?
Or do I have to go back and refile the taxes for 7-8 years. Or do T1-Amendment or T1-ADJ for 7-8 years! That will be a big hassle!
What penalties and interest am I looking at for this ineligible OEPTC benefits I claimed for 7-8 years!
Any issues for my parents? Do they have to do their taxes again also? They didn't claim any illegitimate OEPTC credit. In fact they claimed less than they should have by splitting it with me. But that's fine. We are okay with it.
What is the first and next step I have to do to pay it back? Just call them and explain the situation or upload a letter on My CRA account?
Because I don't really want to go back and refile or do T1- ADJ or T1-Amendment for 7-8 years to pay back this OEPTC.
Hi Haniel,
Thank you for reaching out and for your transparency in wanting to rectify the Ontario Energy and Property Tax Credit (OEPTC) amounts received over the past several years.
You're absolutely right that the OEPTC is only available to individuals who pay property tax and either own or rent their principal residence. Since you didn’t own the property, you would not have been eligible for that portion of the benefit, though you were still eligible for the Ontario Sales Tax Credit (OSTC).
Here’s how you can move forward:
1.No Need to Amend Past Tax Returns (T1-ADJ) Right Away
While the CRA typically requires adjustments through a T1-ADJ or T1 amendment, given that you’re looking to voluntarily repay ineligible benefits, they may allow for an alternative method.
2.Recommended First Step – Write a Letter
I recommend writing a letter addressed to the CRA, clearly explaining the situation, the estimated overpayment per year, and your desire to repay the OEPTC amounts voluntarily. You can upload this letter via your CRA My Account or mail it to the tax centre that handles your file.
3.Voluntary Repayment Options
In your letter, ask CRA for instructions on how to proceed with the repayment (e.g., lump sum vs installment) and whether a formal adjustment is required. This might help you avoid the burden of refiling 7-8 years of tax returns.
4.Penalties and Interest
Since you're initiating this voluntarily, it’s possible the CRA may waive penalties and interest. They generally look favourably on voluntary disclosures, especially when the amounts weren’t fraudulently claimed and no over-claim occurred at the family level.
5.Impact on Your Parents
Based on what you’ve described, your parents are not at risk—they underclaimed their rightful portion of the credit. There is no need for them to amend anything unless CRA advises otherwise.
Summary of Next Steps:
- Draft and upload/send a letter via CRA My Account explaining the issue
- Await CRA’s response and repayment instructions
- Follow their guidance on any required adjustments