Cheques will be sent out this week to Ontario residents

Published October 9, 2023 at 6:00 pm

Some residents of Ontario could be receiving the carbon tax rebate as early as Oct. 13.

The Climate Action Incentive Payment (CAIP) also known as the carbon tax rebate, is a tax-free financial support aimed at assisting individuals and families in offsetting the expenses related to federal pollution pricing.

It is accessible to residents of Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, Nova Scotia and Prince Edward Island.

As of July 2022, the Government of Canada has shifted the payment method for CAIP from a refundable credit claimed annually on personal income tax returns, to quarterly tax-free payments through the benefit system.

These payment amounts vary based on family situations and the province of residence.

Videos

LEARN MORE

GlowZone 360 is one of the most affordable entertainment spots in Mississauga and Brampton

The Canada Revenue Agency (CRA) says, the CAIP payments are universal and don’t reduce based on family income.

Below is a breakdown of the annual payments respective to each province. For the 2022 base year:

The Ontario program provides an annual credit of :

$488 for an individual
$244 for a spouse or common-law partner
$122 per child under 19
$244 for the first child in a single-parent family

The Manitoba program provides an annual credit of:

$528 for an individual
$264 for a spouse or common-law partner
$132 per child under 19
$264 for the first child in a single-parent family

The Saskatchewan program provides an annual credit of:

$680 for an individual
$340 for a spouse or common-law partner
$170 per child under 19
$340 for the first child in a single-parent family

The Alberta program provides an annual credit of:

$772 for an individual
$386 for a spouse or common-law partner
$193 per child under 19
$386 for the first child in a single-parent family

According to Canada.ca, CAIP adds a 10 per cent bonus to the base amount for those living in small and rural communities.

Starting in July 2023:

The Newfoundland and Labrador program provides a quarterly credit of:

$164 for an individual
$82 for a spouse or common-law partner
$41 per child under 19
$82 for the first child in a single-parent family

The Nova Scotia program provides a quarterly credit of:

$124 for an individual
$62 for a spouse or common-law partner
$31 per child under 19
$62 for the first child in a single-parent family

The Prince Edward Island program provides a quarterly credit of:

$120 for an individual
$60 for a spouse or common-law partner
$30 per child under 19
$60 for the first child in a single-parent family

The New Brunswick program provides a quarterly credit of:

$92 for an individual
$46 for a spouse or common-law partner
$23 per child under 19
$46 for the first child in a single-parent family

Residents of PEI all qualify for the 10 per cent rural supplement, which is already included in the amount.

To qualify for CAIP, applicants must be a Canadian resident for income tax purposes and live in a CAIP province at the start of the payment month.

Applicants are required to be at least 19 years old the month before the quarterly payment, but exceptions apply for those under 19 with specific conditions like having a spouse, being a parent, or having an eligible child.

Newcomers can also apply for CAIP by filling out specific forms and sending them to the tax centre.

Individual who do not receive their CAIP, are asked wait 10 workdays before reaching out to the CRA.

More information and frequently asked questions can be found on the Canada.ca website

insauga's Editorial Standards and Policies advertising