As part of the Making life more affordable for Canadians this year news release, the government recently announced three new/enhanced credits that could pay you more than $1,000 if you’re eligible.
Doubling the GST credit (one-time payment)
If you currently receive the GST/HST credit, you will see an extra lump sum payment before the end of 2022. This one-time payment will equal six months’ worth of the annual credit you are currently receiving. So, if your quarterly credit payment is $116, expect to see an extra deposit or cheque for $232.
Action required: No action is needed to receive this extra payment if you are up to date on filing your personal income tax returns. However, if you haven’t filed, or have adult children who haven’t filed, be sure to get those returns in as soon as possible. Don’t hesitate to get in touch with your McCay Duff advisor if you need assistance with this.
Canada dental benefit program for children (on-going)
If you have children under the age of 12 who do not have private dental coverage, you may be eligible for a payment under this new program. If your family income is less than $70,000, you could receive up to $650 per eligible child. If your family income is between $70,000 and $90,000, you could qualify for $260 or $390 per child, depending on your income. This program is due to be implemented later in 2022, but expenses after October 1, 2022, are eligible.
Action required: Hold on to your dental receipts. If you don’t already have access, you might want to set up CRA My Account ahead of time. Exact details are yet to be announced, but at the time of writing, it sounds like the program will be administered directly by the Canada Revenue Agency (CRA). Parents will apply for the benefit to the CRA through the CRA My Account portal or by phone.
Canada housing benefit top-up (one-time payment)
If you (or your adult children) pay rent, and your family income is less than $35,000 ($20,000 if you are single), you may be eligible for a one-time tax-free payment of $500 under this program.
Action required: You will need to apply for this benefit once the related legislation is approved in Parliament. In the meantime, ensure you are up to date on your personal income tax returns and set up CRA My Account if you haven’t already. CRA also suggests you use direct deposit to receive your payment faster.
Contact McCay Duff LLP in Ottawa for Comprehensive Tax Solutions
At McCay Duff LLP, our trusted team of Chartered Professional Accountants provides high-quality tax and business advisory services to Ottawa and surrounding area businesses. Our expert tax advice, planning and preparation help corporations maximize profitability and minimize tax obligations while remaining compliant. To learn more about how our experienced advisors can help you and your business, contact us online or by telephone at 613-236-2367 or toll-free at 1-800-267-6551.