Climate Action Incentive Payment Payment Update for January 2024
The Canada Revenue Agency (CRA) will be distributing the Climate Action Incentive Payment (CAIP) to all Canadian taxpayers starting on January 15, 2024. Here's what you need to know:
Eligibility for CAIP:
Whether you are a long-time Canadian resident, a newcomer, or an international student, you may be eligible for the CAIP. Newcomers, including refugees, permanent residents, and those with temporary residence permits, need to apply for CAIP to benefit from this incentive.To be eligible, you must be a Canadian citizen for tax purposes, 19 years or older at the beginning of the month when CRA makes payments, and living in one of the CAIP-eligible provinces.
What is CAIP?
In simple terms, CAIP is a tax-free incentive provided to individuals and families to help them cope with the costs associated with federal carbon taxing. Residents of provinces like Prince Edward Island, Newfoundland and Labrador, Ontario, Saskatchewan, Manitoba, Alberta, and Nova Scotia can expect to receive their payments on January 15, 2024.CAIP Application for Newcomers:
New permanent residents, international students, and individuals with work permits should use specific forms when applying for CAIP. The CRA will verify eligibility during the income tax and benefit return process, automatically issuing CAIP to those approved. If you have a spouse or common-law partner, only one partner can claim the credit for the family, and it will be given to the individual filing their tax return first.CAIP Payment Amounts:
The amount of CAIP payment is based on individual family circumstances and the province of residence. The CAIP is universal, meaning there is no reduction based on family income. Below are the province-specific amounts for January 2024, according to the CRA:Alberta:
- Base Amount:
- $193 for an individual
- $96.50 for a spouse or common-law partner
- $48.25 per child under 19
- $96.50 for the first child in a single-parent family
- Rural Supplement:
- $19.30 for an individual
- $9.65 for a spouse or common-law partner
- $4.82 per child under 19
- $9.65 for the first child in a single-parent family.
Manitoba:
- Base Amount:
- $132 for an individual
- $66 for a spouse or common-law partner
- $33 per child under 19
- $66 for the first child in a single-parent family
- Rural Supplement:
- $13.20 for an individual
- $6.60 for a spouse or common-law partner
- $3.30 per child under 19
- $6.60 for the first child in a single-parent family.
For more information, refer to the Calculation sheet for residents of Manitoba.
New Brunswick:
- Base Amount:
- $92 for an individual
- $46 for a spouse or common-law partner
- $23 per child under 19
- $46 for the first child in a single-parent family
- Rural Supplement:
- $9.20 for an individual
- $4.60 for a spouse or common-law partner
- $2.30 per child under 19
- $4.60 for the first child in a single-parent family.
For more information, refer to the Calculation sheet for residents of New Brunswick.
Newfoundland and Labrador:
- Base Amount:
- $164 for an individual
- $82 for a spouse or common-law partner
- $41 per child under 19
- $82 for the first child in a single-parent family
- Rural Supplement:
- $16.40 for an individual
- $8.20 for a spouse or common-law partner
- $4.10 per child under 19
- $8.20 for the first child in a single-parent family.
For more information, refer to the Calculation sheet for residents of Newfoundland and Labrador.
Nova Scotia:
- Base Amount:
- $124 for an individual
- $62 for a spouse or common-law partner
- $31 per child under 19
- $62 for the first child in a single-parent family
- Rural Supplement:
- $12.40 for an individual
- $6.20 for a spouse or common-law partner
- $3.10 per child under 19
- $6.20 for the first child in a single-parent family.
For more information, refer to the Calculation sheet for residents of Nova Scotia.
Ontario:
- Base Amount:
- $122 for an individual
- $61 for a spouse or common-law partner
- $30.50 per child under 19
- $61 for the first child in a single-parent family
- Rural Supplement:
- $12.20 for an individual
- $6.10 for a spouse or common-law partner
- $3.05 per child under 19
- $6.10 for the first child in a single-parent family.
For more information, refer to the Calculation sheet for residents of Ontario.
Prince Edward Island:
- Base Amount:
- $120 for an individual
- $60 for a spouse or common-law partner
- $30 per child under 19
- $60 for the first child in a single-parent family
- Rural Supplement: Included in the above base amounts, as all residents are eligible.
For more information, refer to the Calculation sheet for residents of Prince Edward Island.
Saskatchewan:
- Base Amount:
- $170 for an individual
- $85 for a spouse or common-law partner
- $42.50 per child under 19
- $85 for the first child in a single-parent family
- Rural Supplement:
- $17 for an individual
- $8.50 for a spouse or common-law partner
- $4.25 per child under 19
- $8.50 for the first child in a single-parent family.
- Base Amount:
Similar breakdowns are provided for Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan.
Climate Action Incentive Payment Dates for 2024:
The CAIP payments for 2024 are scheduled for January 15, April 15, July 15, and October 15. If the 15th falls on a non-working day, the payment will be issued on the last working day before the 15th.Addressing Tax Liability:
If you have a tax liability, the CRA will add the CAIP to amounts owed for late income tax payments or balance amounts owed to other federal or provincial government programs. If you haven't received your CAIP payment by January 25, 2024, you can contact the CRA after ten working days for assistance.Stay informed and make the most of the Climate Action Incentive Payment in 2024!
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