As inflation continues to rise across Canada, making just about everything pricier nationwide from the cost of rent, groceries to day-to-day necessities, it’s no secret that managing expenses has become a growing concern.
Amidst the rising costs, the Government of Canada has a lineup of federal benefits and credits to lend a helping hand. From the Canada Pension Plan and Old Age Security pension to the GST/HST Credit, Canada Child Benefit, and the Canada Workers Benefit, these programs aim to provide some financial breathing room for individuals and families grappling with the economic pinch.
It’s important to verify if you’re eligible for any government benefits and credits, as you could be entitled to hundreds of dollars next month.
Here’s everything to know about the government benefits and credits going out in January 2024:
Canada Pension Plan
Per Canada Revenue, The retirement pension offered by the Canada Pension Plan (CPP) is a monthly, taxable benefit designed to supplement your income during retirement. If you meet the eligibility criteria, you will be entitled to receive the CPP retirement pension throughout your lifetime. To qualify, you must:
- Attain a minimum age of 60.
- Have made at least one valid contribution to the CPP.
Valid contributions may stem from employment in Canada or may be attributed to credits received from a former spouse or common-law partner following the termination of the relationship.
Payment Date: January 29, 2024
More about the Canada Pension Plan
Old Age Security
According to the CRA, the Old Age Security (OAS) pension is a monthly payment available to individuals aged 65 and older.
Typically, Service Canada will automatically enroll you for the OAS pension, and they will notify you once the enrollment process is complete. However, if there is insufficient information to enroll you automatically, you may need to submit an application for the Old Age Security pension.
Payment Date: January 29, 2024
GST/HST Credit
The GST/HST credit is a tax-free quarterly payment intended to assist individuals and families with low to modest incomes in offsetting the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) they incur, per the CRA.
This federal credit may also encompass contributions from provincial and territorial programs. Eligibility for the GST/HST credit is automatic, and you are considered for it when you file your taxes.
Payment Date: January 5, 2024
Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is managed by the Canada Revenue Agency (CRA) and constitutes a tax-free monthly allowance provided to qualifying families.
This financial support aims to assist with the expenses associated with raising children under the age of 18. The CCB may encompass the child disability benefit and associated provincial and territorial programs.
Payment Date: January 19, 2024
Ontario Trillium Benefit (OTB)
The Ontario Trillium Benefit (OTB) consolidates the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit into a single combined payment. Typically, the annual OTB entitlement is divided by 12, resulting in monthly payments.
Your 2023 OTB payments, calculated based on your 2023 income tax and benefit return, will be disbursed on the 10th of each month.
Legislated and funded by the Province of Ontario, the OTB program is administered by the Canada Revenue Agency (CRA) on behalf of the province.
Payment Date: January 10, 2024
Advanced Canada Workers Benefit (ACWB)
According to the Canada Revenue Agency, the Canada Workers Benefit is described as “a refundable tax credit designed to assist individuals and families with low incomes who are actively employed.”
The maximum basic amount for the Canada Workers Benefit (CWB) is as follows:
For single individuals:
- $1,428
- The amount gradually decreases if your adjusted net income exceeds $23,495.
- No basic amount is paid if your adjusted net income exceeds $33,015.
For families:
- $2,461
- The amount gradually decreases if your adjusted family net income exceeds $26,805.
- No basic amount is paid if your adjusted family net income exceeds $43,212.
The Canada Revenue Agency (CRA) utilizes the following information to calculate your CWB refundable tax credit:
- Marital status – eligible spouse
- Province or territory of residence
- Earned working income
- Adjusted family net income
- Eligible dependant
- Eligibility for the disability tax credit
Payment Date: January 12, 2024
Climate Action Incentive Payment
The CAIP, a tax-free benefit, is provided to assist individuals and families in mitigating the expenses associated with federal pollution pricing, the CRA said.
Eligible residents of Alberta, Saskatchewan, Manitoba, and Ontario can access this benefit, which comprises a basic amount and an additional supplement for those residing in small and rural communities.
To qualify for this credit, you must be a resident of Canada for income tax purposes at the commencement of the month when the CRA issues the payment. Additionally, eligibility requires residency in an applicable CAIP province on the first day of the payment month.
Payment Date: January 15, 2024
This article’s cover image was used for illustrative purposes only.
Source: MTL Blog
