The Ontario Opportunities Fund Could Be A Great Way To Save on Taxes & Here's How It Works
All Ontario residents are eligible!
CRA National Headquarters in Ottawa. Right: Receipts for filing taxes.
As tax season approaches, many Canadians are looking for ways to optimize their tax credits for 2023. If you're a resident of Ontario, you may be in luck with the Ontario Opportunities Fund.
According to the Canada Revenue Agency (CRA), Ontario residents could be eligible for extra tax credits through an investment in The Ontario Opportunities Fund.
The Ontario Opportunities Fund allows Ontario residents to invest in local businesses, promote economic growth and job creation in the province, and taxpayers investing in the fund would be contributing to paying down the province's debt.
The tax credit they may receive is non-refundable, meaning it can only be used to reduce the taxpayer's tax liability.
The amount of the tax credit depends on the amount of the investment and the taxpayer's income level.
What is the Ontario Opportunities Fund?
The Government of Ontario set up a special fund called the "Ontario Opportunities Fund" to help local businesses in the province. The goal is to invest in local businesses to help them grow and create more jobs for people in Ontario.
How do I know if I'm eligible?
Any resident of Ontario that files a personal income tax return is eligible.
How does it work?
There are two ways to contribute to the Ontario Opportunities Fund. The first one is the redirect your income tax refund. To do that, you will need to follow these steps:
- First, you will need to file your personal income tax return, whether you are owed a refund or not.
- Complete the Ontario Opportunities Fund section: On page four of your return, you will see a section dedicated to the Ontario Opportunities Fund. Fill out this section to indicate the amount of your refund that you would like to donate.
- Wait for your refund: Once your tax return has been processed, you will receive your refund minus the amount that you chose to donate to the Ontario Opportunities Fund.
- Receive your tax credit: The government will send you a receipt for your fund contribution showing the tax year when the contribution was made. You can use the dollar amount on the receipt to calculate federal and provincial donations and gifts' non-refundable tax credits on your return.
Remember, your donation will not be processed if it is less than $2.
The second option is an old-school one, where you mail a cheque or money order to the Minister of Finance - Ontario Opportunities Fund to the Ontario Financing Authority at 1 Dundas Street West, Suite 1400, Toronto, Ontario, M7A 1Y7.
How do I claim my tax credit?
Once you contribute to the Ontario Opportunities Fund, the government will send you a receipt that shows how much you donated and the tax year of your contribution.
This receipt can be used to claim a non-refundable tax credit on your federal and provincial tax returns. You can claim the credit for the year you made the donation or carry it forward for up to five years.
By claiming the credit, you can reduce the amount of tax you have to pay and, sometimes, even get a refund. But remember, you can only claim each contribution once, and don't send your receipt to the government with your tax return — just keep it in case they ask for it later.
This article's cover image was used for illustrative purposes only.