The sun is shining. The heat is on. Summer is here! …as well as a possible new government payment deposited into your account by tomorrow!
Over the past few weeks, we have had countless inquiries regarding the first quarterly Federal Climate Action Incentive Payment (CAIP) set to deposit on July 15th and we are here to give you the scoop…
The Climate Action Incentive Payment (CAIP) is a tax-free quarterly benefit for Canadians residing in Ontario, Alberta, Manitoba, and Saskatchewan. It was created to help Canadian residents counter the cost of increased pricing for federal pollution.
The quarterly payout is new this tax season and is paid directly to your household via cheque or direct deposit. Prior to 2021 taxation year, the Climate Action was a refundable tax credit you could claim on your annual income tax return.
The payment is calculated per household and is determined by a base amount for the first individual, then an additional amount for spouse and dependants. A supplement is added of 10% for residents of small and rural communities.
As an example… if you lived in Ontario as a couple with two dependents under the age of 19 living in a non-rural community – you would be entitled to receive $745.00 annually ($373.00 for an individual, $186.00 for a spouse and $93.00 for each child under 19). This amount will be divided into 4 equal quarterly amounts of $186.25 starting on July 15th. If the rural supplement applies, this family of 4 would receive $819.00, or $204.75 per quarterly payment.
If you have access to your Canada Revenue Agency (CRA) My Account and are receiving this benefit, you will note the payment amount and date under the Benefits & Credits section of your main overview page.
To be eligible for CAIP you MUST file your 2021 income tax return. Filing a return is the only way to ensure you will receive the quarterly payments. If you have not yet filed your income tax return, you will not receive this benefit.
CAIP is available to each household and is not relative to your income. If you have a spouse or common-law partner, only one person in the household will receive the payment throughout the year. The spouse or common-law partner whose 2021 income tax return is assessed FIRST by CRA is scheduled to be the spouse who should receive the payments.
The first payment on July 15th, 2022 is a double payment and includes the quarterly amount for both April and July. The following payments will be received October 15, 2022, and January 15, 2023.
If you have yet to file your 2021 income tax return, you can at any time! You will be eligible for the Climate Action payments upon doing so. If you have any questions about the CAIP or need assistance, the team at SheDo Tax is ready to help!
Hope you and your family have a safe and enjoyable summer!