Top 4 CRA Benefits Set to Increase in 2024 | Canada Government Financial Assistance

Managing your finances might be challenging due to the rising cost of living. However, there is positive news! Beginning in July 2024, the Canadian government—through the Canada Revenue Agency (CRA)—will be raising several significant benefits. The purpose of these increases is to give low-income workers, families, and residents of rural areas extra financial assistance.

Let’s examine these advantages and how they can assist you.

1. Canada Child Benefit (CCB): More Support for Raising Children

A tax-free monthly payment, the Canada Child Benefit (CCB) assists families in meeting the costs associated with raising children. Every year, the amount of the benefit is automatically determined using your adjusted family net income (AFNI) from the last tax return. This makes sure that the assistance you get is appropriate for your present financial status.

What will change in July 2024 is as follows:

• Maximum Benefit Increase: For children under six, the maximum annual benefit will rise from $7,437 to $7,786.92. This amounts to an extra $349.92 annually to assist with the expenses of raising little children.
• Who is qualified? All Canadian families with children under the age of eighteen can apply for the CCB. Your family’s AFNI determines how many benefits you get.
• When will the enhanced benefit be given to you? On July 19, 2024, the first payment in the enhanced amount will be made. After that, payments will still be made every month, usually around the 20th of the month.
• How to Submit an Application You can apply for Canada Child Benefits (CCB) online through your My Account on the CRA website if you’re a new resident who moved to Canada after the deadline for filing taxes, or you can apply by mail by sending in a completed and signed Form RC66, Canada Child Benefits Application.

2. GST/HST Credit: Lowering the Tax Burden on Everyday Purchases

A tax-free quarterly payment known as the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is intended to assist low- and middle-income individuals and families in lessening the effect of the GST or HST they must pay on regular purchases. This advantage essentially lowers your sales tax liability, which lowers the cost of necessities like groceries and clothes.

What will change in July 2024 is as follows:

• Increased Maximum Credit: For both single people and couples, the maximum yearly credit will rise. This implies that after covering the costs of basic needs, you’ll retain more of your hard-earned money.
• Individuals Without Children: The maximum yearly credit for individuals without children will rise from $496 to $519.
• Couples: The maximum yearly credit limit for couples will increase from $650 to $680.
• Who is qualified? The income stated in your tax return is the basis on which the CRA automatically assesses your eligibility for the GST/HST credit. You will likely be eligible for this benefit if your income is modest to moderate.
• When will the enhanced benefit be given to you? On July 5, 2024, the first quarterly payment with the enhanced credit amount for the upcoming fiscal year will be made. Payments will then continue to be made every quarter.

3. Advanced Canada Workers Benefit (ACWB): A Boost for Low-Income Earners

A refundable tax credit called the Advanced Canada Workers Benefit (ACWB) is intended to assist working families and people with modest incomes. For those who require it most, this benefit offers much-needed financial support and serves as an incentive to work. It contributes to the payment of necessities, providing a safety net and fostering general financial stability.

What will change in July 2024 is as follows:

• Increased Annual Benefit: The maximum annual benefit for single people will now be $1,518 instead of $1,428. The purpose of this increase is to better support basic living expenses.
• Who is qualified? The purpose of the ACWB is to support incomes and promote ongoing employment. It is mostly intended for low-income employees who are at least 19 years old. Your income level and Canadian residency status determine your eligibility and benefit amount.
• When will the enhanced benefit be given to you? On July 12th, 2024, the first quarterly payment with the enhanced amount will be made. Payments will then continue to be made every quarter.

4. Canada Carbon Rebate (CCR): Helping with Carbon Pricing Costs

The Climate Action Incentive Payment (CAIP), formerly known as the Canada Carbon Rebate (CCR), is intended to partially cover the higher expenses related to the federal carbon pricing strategy. The goals of this plan are to lower greenhouse gas emissions and promote environmentally friendly behavior among Canadians.

What will change in July 2024 is as follows:

• New Rural Supplement: The CCR will now contain a new rural supplement in recognition of the particular difficulties experienced by people who live in rural regions. In addition to the standard CCR amount, this supplement gives eligible residents in these locations an extra 20%. This lessens the effect of what could otherwise be higher prices for necessities in rural areas.
• Who is qualified? Residents of particular provinces who are 19 years of age or older may apply for the CCR. On the CRA website, the particular provinces covered by the carbon pricing plan will be mentioned.
• When will the enhanced benefit be given to you? On July 15, 2024, the first quarterly payment incorporating the new rural supplement will be made. Payments will then continue to be made every quarter.

Vital Reminders:

• Pay Your Taxes on Time: Even if you have no income to declare, you must file your income tax return on time to be eligible for any of these improved advantages. By filing your taxes, you guarantee that the CRA has the most recent data necessary to assess your eligibility and compute the appropriate benefit amount.
• Automatic Calculations: Using the data from your tax return, the CRA automatically determines your eligibility and benefit levels. It follows that you do not need to apply for each benefit separately.
• Remain Up to Date: A great place to find out everything there is to know about these benefits is the CRA website. Details regarding eligibility requirements, payment plans, and how to get in touch with the CRA in case of questions are available.

Extra Assistance Initiatives:

Although not immediately affected by increases in July 2024, the following extra CRA programs can offer further financial assistance:

• Disability Tax Credit (DTC): This credit lowers the amount of income taxes owed by qualified people with disabilities and the members of their supportive families. A recent enhancement facilitates the online application process for the DTC, enabling medical professionals and applicants to electronically complete their portions.
• The Canada Dental Benefit program, which ran until June 30, 2024, was a temporary initiative that helped low-income families pay for dental care received between July 1, 2023, and June 30, 2024. The second period’s application deadline has already passed.

Programs for Home Buyers:

• First-time homebuyers can save up to $40,000 tax-free for a down payment on a property through the First-Time Home Buyer’s Savings Account (FHSA) program. Income tax returns can deduct contributions to the FHSA, and withdrawals utilized for home purchases are tax-free.
• The Home Buyers’ Plan (HBP) enables people to take out a maximum of $60,000 from their Registered Retirement Savings Plans (RRSPs) to utilize it as a down payment on a property. After that, they have 15 years to pay back the money they took out and put back into their RRSPs.

GST/HST New Home Incentive:

This rebate offers a partial refund of the GST or HST paid on the building or purchase of a newly constructed home, which helps to lower the cost of homeownership.

Key Takeaways:

The CRA’s July 2024 benefit increases are intended to give Canadians who are struggling with growing living expenses much-needed financial relief. These increases are directed toward low-income individuals, rural communities, and families with children.

Remember to update your information with the CRA and file your income tax return on time to guarantee that you obtain the advantages to which you are entitled. By utilizing these resources and maintaining awareness, you can lessen your financial load and attain increased stability.