Canada’s Increased Benefit Payments 2024: New Increments and Eligibility

Beginning next month, the Canada Revenue Agency (CRA) will begin paying greater amounts for several important benefits. With the cost of living increasing, this measure is intended to assist both individuals and families. Based on individuals’ most recent tax returns, the CRA examines and modifies these benefits annually to reflect their current circumstances.

This guarantees that the assistance provided is precise and founded on current income information. Even if they have no income to report, Canadians should complete their tax returns on schedule to avoid any problems receiving these benefits.

Key Benefits with Increased Payments

The CRA is improving several perks to better assist Canadians. This is a thorough overview of these benefits, along with payment schedules and qualifying requirements.

1. Canada Child Benefit (CCB)

A tax-free monthly payment called the Canada Child Benefit (CCB) is given to families to help with the expenses of raising children. Every July, the benefit amount is modified following the family’s net income from the preceding year to make sure it accurately represents their present financial status.

• Eligibility: All families in Canada with children are eligible for the CCB. Every year in July, the amount is recalculated using the adjusted family net income (AFNI).
• Payment Increase: The maximum annual payment for children under six will rise from $7,437 to $7,786.92. This increase aids in defraying the price of rearing little children.
• Upcoming date of payment: August 20, 2024. Every month, usually around the 20th, the CCB is paid.

2. Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit

A tax-free quarterly payment known as the GST/HST credit is intended to assist low- to moderate-income people and families in offsetting the expense of the GST or HST on goods and services.

• Eligibility: Based on the income stated in the tax returns, the CRA automatically establishes eligibility. Those with low to moderate incomes are the target audience for this financing.
• Payment Increase: The maximum annual credit for single people will rise to $519 (from $496) and for couples, to $680 (from $650).
• Upcoming date of payment: October 4, 2024. The first payment of the fiscal year is made in July, and the credit is paid quarterly.

3. Advanced Canada Workers Benefit (ACWB)

A refundable tax benefit, the ACWB is intended to assist low-income individuals and families. It stimulates employment and offers extra financial support to those who require it most, assisting with necessities and fostering financial security.

• Eligibility: Recipients must be low-income employees who are 19 years of age or older. The recipient’s income and residency status determine their eligibility and payment levels.
• Payment Increase: The maximum annual benefit for single people will now be $1,518 instead of $1,428. This is a slight increase. The goal of this modification is to provide more assistance for necessary costs.
• October 11, 2024, is the next payment date. Payments from ACWB are made every quarter.

4. Canada Carbon Rebate (CCR)

The Climate Change Rebate (CCR), formerly the Climate Action Incentive Payment (CAIP), assists in mitigating the expenses related to federal pollution pricing. This benefit promotes environmental sustainability while ensuring that environmental regulations do not disproportionately burden Canadians.

• Eligibility: The CCR, which tries to offset federal carbon price expenditures, is available to citizens of selected provinces who are 19 years of age or older.
• Payment Increase: The CCR will introduce a new rural supplement in October that will give qualified rural households an extra 10% to cope with the particular expenses of living in these locations.
• October 15, 2024, is the next payment date. Quarterly payments are provided for CCRs.

Additional Support Programs

Apart from the principal advantages mentioned earlier, the CRA provides various other initiatives aimed at aiding Canadians.

1. Disability Tax Credit (DTC)

People with impairments and their families can potentially pay less in income tax thanks to the Disability Tax Credit. The DTC application procedure is now accessible online, which facilitates the completion of each section by applicants and medical professionals.

2. Canada Dental Benefit

Families with young children who require dental treatment can receive financial assistance through the temporary Canada Dental Benefit. For dental services received between July 1, 2023, and June 30, 2024, this benefit offers up to $650 per child. June 30, 2024, is the deadline for applications during this time.

3. First-Time Home Buyer Incentives (FHSA and HBP)

First-time homebuyers can save up to $40,000 tax-free in the First Home Savings Account (FHSA), with contributions that are deductible on income tax returns and withdrawals that are tax-free when used for a home purchase. With a 15-year payback horizon, the Home Buyers’ Plan (HBP) allows people to take up to $60,000 out of their RRSPs to build or purchase a home.

4. GST/HST New Housing Rebate

By returning a percentage of the GST/HST paid, the GST/HST New Housing Rebate helps lower the cost of purchasing or building a new house. The goal of this rebate is to lower the cost of homeownership for Canadians.

Keeping yourself informed and making sure your data is current with the CRA is essential to making the most of the available financial assistance. You may take advantage of the support provided and manage your finances more effectively if you are aware of these perks and their timings.