On Monday, tax season started, and the Canada Revenue Agency (CRA) is encouraging residents to start filing taxes, to receive potential benefits they may be eligible for.

Canada child benefit

Those who file their taxes on time and have children under the age of 18, may be eligible for the Canada child benefit.

"The Canada Child Benefit (CCB) is administered by the Canada Revenue Agency (CRA). It is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age," according to the CRA.

However, the CRA is reminding residents that to continue receiving the benefit, including all related provincial and territorial payments, one must file one's tax return on time every year.

"If you have a spouse or common-law partner, they also have to file their tax return on time every year. You must file your tax return even if your income is tax-exempt or you have no income. If you don't file your tax return every year, your payments will stop."

It's also important to note that the CCB payment is not taxable.

"This means that you will not receive a slip, and you don't have to report it on your tax return."

This month's child benefit is slated to be paid on Tuesday, with the remaining dates as follows:

  • March 20, 2024
  • April 19, 2024
  • May 17, 2024
  • June 20, 2024
  • July 19, 2024
  • August 20, 2024
  • September 20, 2024
  • October 18, 2024
  • November 20, 2024
  • December 13, 2024

Child disability benefit (CDB)

This benefit is a, 'a tax-free monthly payment made to families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.'

In order to be eligible one must be eligible for the CCB, as well as the Disability Tax Credit (DTC).

"The disability tax credit (DTC) is a non-refundable tax credit that helps people with disabilities, or their supporting family member, reduce the amount of income tax they may have to pay."

The amount is calculated based on how many children are eligible for the benefit, as well as the adjusted family net income (AFNI).

The CRA said that every July, your CDB payments are recalculated based on your AFNI from the previous year.

"For example, July 2023 to June 2024 payments are based on your adjusted family net income from your 2022 tax return. July 2022 to June 2023 payments are based on your adjusted family net income from your 2021 tax return."

Canada Workers Benefit (CWB)

This benefit is a, 'refundable tax credit to help individuals and families who are working and earning a low income.'

"Starting in July 2023 and based on the 2022 taxation year, the CWB will provide advance payments equal to 50 per cent of the CWB across 3 payments under the Advanced Canada workers benefit (ACWB). This initiative puts more money in the workers' pockets to help cope with the rising cost of living."

Anyone who received the CWB in 2022 will receive the advanced payments, there is no need to apply.

GST/HST credit 

Residents are automatically considered for this credit when they file their tax returns. For those eligible one can receive for the 2022 base year (payment period from July 2023 to June 2024):

  • $496 if you are single
  • $650 if you are married or have a common-law partner
  • $171 for each child under the age of 19

Canada Carbon Rebate (CCR)

Known previously as the Climate Incentive Action Program (CIAP), 'on April 15, 2024, you and your spouse or common-law partner (if applicable), must have your income tax and benefit return filed electronically on or before March 15, 2024.'

"If your tax returns are processed after this date, your April payment will be included in a subsequent payment after your return is assessed."

The base amount for Alberta is:

  • $225 for an individual
  • $112.50 for a spouse or common-law partner
  • $56.25 per child under 19
  • $112.50 for the first child in a single-parent family

Multigenerational home renovation tax credit (MHRTC)

This is a new available tax credit on the 2023 tax returns.

"If you are eligible, you can claim this credit for certain renovation expenses to create a self-contained secondary unit. The secondary unit must allow a senior or an adult who is eligible for the disability tax credit to live with a qualifying relative," the CRA states.

According to the CRA, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation that is completed. The tax credit is 15 per cent of your costs, up to a maximum of $7,500, for each claim you are eligible to make.

Expenses that you can claim include:

  • A reasonable expense that is directly attributable to the qualifying renovation of an eligible dwelling
  • Made or incurred after December 31, 2022, and before the end of the renovation period
  • Made or incurred by an eligible individual (or a trust that the eligible individual is a beneficiary of)

Expenses that do not qualify include:

  • Annual, recurring or routine repair or maintenance
  • Household appliances
  • Electronic home-entertainment devices
  • Housekeeping, security monitoring, gardening, outdoor maintenance or similar services
  • Financing costs for the qualifying renovation
  • Goods or services provided by a person not dealing at arm’s length with the individual unless that person is registered for GST/HST under the Excise Tax Act
  • Expenses that can reasonably be considered to have been reimbursed
  • Expenses not supported by receipts
  • Expenses that have already been claimed under the medical expense tax credit or home accessibility tax credit, or both

First Home Savings Account (FHSA)

There are several credits that homeowners may be eligible for including the FHSA. According to the CRA, the first home savings account is a registered plan which allows you, if you are a first-time home buyer, to save to buy or build a qualifying first home tax-free (up to certain limits).

"If you opened an FHSA in 2023, you can claim up to $8,000 in FHSA contributions you made by December 31, 2023, as an FHSA deduction on your 2023 income tax and benefit return."

The CRA explains that for purposes of opening an FHSA, a first-time homebuyer is defined as someone who, 'did not, at any time in the current calendar year before the account is opened or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that either: you owned or jointly owned or your spouse or common-law partner (at the time the account is opened) owned or jointly owned.'

However, to qualify for a withdrawal, the definition is different, and defined as, 'you will be considered to be a first-time home buyer if you did not, at any time in the current calendar year before the withdrawal (except the 30 days immediately before the withdrawal) or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that you owned or jointly owned.

Changes to the First-Time Home Buyers’ Tax Credit (HBTC)

According to the CRA, this measure has received Royal Assent and, 'for the 2022 and subsequent taxation years, the Budget proposes to increase the amount used to calculate the HBTC to $10,000, which would provide a tax credit of up to $1,500 to eligible home buyers.'

Currently, first-time home buyers who acquire a qualifying home can claim a non-refundable tax credit of up to $750. The value of the HBTC is calculated by multiplying $5,000 by the lowest personal income tax rate (15 per cent in 2022).

"The proposed changes would increase the amount used to calculate the HBTC to $10,000, which would provide a tax credit of up to $1,500 to eligible home buyers. All other rules regarding the credit and the increased limit remain the same."

The Home Buyers' Plan 

The CRA explains that the Home Buyers' Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or a specified disabled person.

"Currently the HBP withdrawal limit is $35,000."

Changes to the Home Accessibility Tax Credit (HATC)

Like the HBTC, there are changes to this tax credit, as it too has received Royal Assent.

Currently, this credit is calculated by applying the lowest personal income tax rate (15 per cent in 2022) to an amount, 'that is currently the lesser of $10,000 and the eligible expenses in respect of an eligible dwelling for the taxation year. The taxpayer may claim a tax credit of up to $1,500.'

The CRA also underlines that eligible expenses must be incurred for work performed or goods acquired in respect of a qualifying renovation of an eligible dwelling of a qualifying individual.

"For the 2022 and subsequent taxation years, the Budget proposes to increase the annual expense limit of the HATC from $10,000 to $20,000.  This may allow a taxpayer to claim a tax credit of up to $3,000.  All other rules regarding the credit and the increased limit would remain the same."

Deadlines

Last year, more than 3.1 million Alberta residents filed their tax returns online, which was over 94 per cent of filers.

"Eligible Alberta residents received an average of $7,080 in Canada child benefit (CCB) payments, $500 in goods and services tax/harmonized sales tax (GST/HST) credit payments, as well as $270 in Canada Carbon Rebate payments (previously known as the Climate Action Incentive Payment)"

The deadline for filing taxes this year for the majority of Canadians is April 30. 

"If you owe money to the CRA, this is also the payment due date. You have until June 15, to file your tax return if you're self-employed. But if you owe money, you must pay by April 30, to avoid interest," The CRA reminds. 

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