KEY TAKEAWAY: The Canada Revenue Agency (CRA) is set to enhance several key benefits starting next month to better support Canadian residents. These updates are crucial to help individuals and families manage the rising cost of living. This article will cover the updated payment amounts, eligibility criteria, and the disbursement schedule for the Canada Child Benefit, GST/HST Credit, Advanced Canada Workers Benefit, and Canada Carbon Rebate. Stay informed and ensure your tax returns are filed on time to benefit from these increases.
The Canada Revenue Agency (CRA) is about to roll out increased payments for several critical benefits, marking a significant update in its financial support system for Canadian residents. This change aims to help individuals and families cope with the rising cost of living by providing timely financial boosts. Each July, the CRA reviews and updates benefit amounts based on the latest filed tax returns, ensuring support aligns with current life situations.
Updated CRA Benefits with Increased Payments
Starting from the next disbursement, the CRA is enhancing several key benefits to better support Canadians. Below is a detailed overview of the benefits that are receiving increases, along with information about eligibility and payment schedules.
Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is a tax-free monthly payment designed to help families with the costs of raising children. This benefit is recalculated every July based on the adjusted family net income (AFNI) from the previous year.
Eligibility: The CCB is calculated based on the adjusted family net income (AFNI) available to all Canadian families with children. Newcomers to Canada must apply online using My Account or by mail with Form RC66.
Payment Increase: For children under the age of 6, the maximum annual benefit will increase to $7,786.92, up from $7,437.
Next Payment Date: August 20, 2024. Payments are typically made around the 20th of each month.
GST/HST Credit
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit is a tax-free quarterly payment to offset the tax burden for individuals and families with low to moderate incomes.
Eligibility: This payment is aimed at helping individuals and families with low to moderate incomes offset the GST or HST they pay. Eligibility is determined automatically based on the income reported in tax returns.
Payment Increase: The maximum annual credit for single individuals will increase to $519 (from $496) and for couples to $680 (from $650).
Next Payment Date: October 4, 2024. This credit is paid quarterly.
Advanced Canada Workers Benefit (ACWB)
The Advanced Canada Workers Benefit (ACWB) is a refundable tax benefit to support low-income individuals and families, encouraging work and providing additional financial assistance.
Eligibility: The ACWB targets low-income workers aged 19 or older. Eligibility and payment amounts are based on the recipient’s income and residency status.
Payment Increase: The annual benefit for single individuals will rise to $1,518, providing a modest increase over the previous maximum of $1,428.
Next Payment Date: October 11, 2024. Payments are distributed quarterly.
Canada Carbon Rebate (CCR)
The Canada Carbon Rebate (CCR), previously known as the Climate Action Incentive Payment (CAIP), helps offset the costs associated with federal pollution pricing, ensuring environmental policies do not disproportionately affect Canadians.
Eligibility: This benefit is available to residents of specific provinces who are 19 years of age or older.
Payment Increase: Starting in October, the CCR includes a new rural supplement, providing an additional 10% to eligible rural residents.
Next Payment Date: October 15, 2024. Payments are made quarterly.
Additional Support Programs and Updates
Disability Tax Credit Digital Application
The Application Form for the Disability Tax Credit (DTC) is now available online. This digital option makes the process more convenient and efficient for applicants and medical practitioners. More information can be found on the CRA’s Disability Tax Credit page.
Canada Dental Benefit
The interim Canada Dental Benefit offers up to $650 per child for dental care received between July 1, 2023, and June 30, 2024. Eligible families can apply online or through the CRA. Detailed information is available on the Canada Dental Benefit page.
FHSA and HBP
The First-Time Home Buyer Savings Account (FHSA) allows first-time homebuyers to save up to $40,000 tax-free. Contributions are deductible, and withdrawals for purchasing a home are tax-free. The Home Buyers’ Plan (HBP) lets individuals withdraw up to $60,000 from their RRSPs to buy or build a house, with a 15-year repayment period. More details are available on the FHSA and HBP pages.
GST/HST New Housing Rebate
The GST/HST New Housing Rebate helps reduce the cost of building or buying a newly built home by refunding a portion of the GST/HST paid, making homeownership more affordable. More information can be found on the GST/HST New Housing Rebate page.
FAQs
How can I apply for the Canada Child Benefit (CCB)?
Apply online using My Account or by mail with Form RC66.
Who is eligible for the GST/HST Credit?
Individuals and families with low to moderate incomes, determined automatically based on income reported in tax returns.
What is the purpose of the Advanced Canada Workers Benefit (ACWB)?
To support low-income individuals and families, encouraging continued employment.
Who can receive the Canada Carbon Rebate (CCR)?
Residents of specific provinces aged 19 or older, including a new rural supplement starting in October.
How can I benefit from the Disability Tax Credit (DTC)?
Apply using the online form available for both applicants and medical practitioners. More information on the DTC page.
What is the First-Time Home Buyer Savings Account (FHSA)?
A savings account allowing first-time homebuyers to save up to $40,000 tax-free. More details on the FHSA page.
How does the GST/HST New Housing Rebate work?
It refunds a portion of the GST/HST paid on newly built homes to make homeownership more affordable. More information on the GST/HST New Housing Rebate page.
For more detailed information and to ensure your benefits are up-to-date, visit the CRA official website.
By staying informed and ensuring your tax returns are filed on time, you can maximize the financial support available from these updated CRA benefits. For more details, visit HustleHub.