These 4 CRA Benefits Will Be Paid at Increase Amount in July 2024
The rising cost of living can make it hard to manage your money. But there is some good news! The Canadian government, through the Canada Revenue Agency (CRA), is increasing several important benefits starting in July 2024. These increases aim to provide more financial help for families, low-income earners, and people living in rural areas.
Let’s look at what these benefits are and how they can help you.
1. Canada Child Benefit (CCB): More Support for Raising Children
The Canada Child Benefit (CCB) is a monthly tax-free payment designed to help families with the financial demands of raising children. The benefit amount is automatically calculated each year based on your adjusted family net income (AFNI) from the previous tax return. This ensures that the support you receive reflects your current financial situation.
Here’s what’s changing in July 2024:
- Increased Maximum Benefit: The maximum annual benefit for children under 6 years old will increase to $7,786.92, up from $7,437. This represents an additional $349.92 per year to help cover the costs associated with raising young children.
Who is eligible? The CCB is available to all Canadian families with children under the age of 18. The benefit amount you receive is determined by your family’s AFNI.
When will you receive the increased benefit? The first payment with the increased amount will be issued on July 19th, 2024. Following that, payments will continue to be made monthly, typically around the 20th of each month.
How to Apply: If you’re a new resident to Canada who arrived after the tax filing deadline, you can apply for the CCB online using your My Account on the CRA website or by mail by submitting a completed and signed Form RC66, Canada Child Benefits Application.
2. GST/HST Credit: Lowering the Tax Burden on Everyday Purchases
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is a tax-free quarterly payment that helps low- and middle-income individuals and families offset the impact of the GST or HST they pay on everyday purchases. This benefit essentially reduces the amount of sales tax you owe, making essential items like groceries and clothing more affordable.
Here’s what’s changing in July 2024:
- Increased Maximum Credit: The maximum annual credit will see an increase for both single individuals and couples. This means you’ll keep more of your hard-earned money after paying for everyday necessities.
- Single Individuals: The maximum annual credit for single individuals will increase to $519 from the previous amount of $496.
- Couples: Couples will see their maximum annual credit rise to $680, up from $650.
Who is eligible? The CRA automatically determines eligibility for the GST/HST credit based on the income reported in your tax return. If you have a low to moderate income, you’re likely to qualify for this benefit.
When will you receive the increased benefit? The first quarterly payment for the new fiscal year with the increased credit amount will be issued on July 5th, 2024. Following that, payments will continue to be made quarterly.
3. Advanced Canada Workers Benefit (ACWB): A Boost for Low-Income Earners
The Advanced Canada Workers Benefit (ACWB) is a refundable tax credit specifically designed to support low-income working individuals and families. This benefit acts as an incentive to work and provides much-needed financial assistance to those who need it most. It helps cover essential expenses, offering a financial buffer and promoting overall financial stability.
Here’s what’s changing in July 2024:
- Increased Annual Benefit: The annual benefit amount for single individuals will rise to $1,518 from the previous maximum of $1,428. This increase aims to provide greater support for essential living expenses.
Who is eligible? The ACWB is designed to supplement earnings and encourage continued employment. It’s primarily targeted towards low-income workers aged 19 years or older. Eligibility and the amount of benefit you receive depend on your income level and residency status in Canada.
When will you receive the increased benefit? The first quarterly payment with the increased amount will be distributed on July 12th, 2024. Following that, payments will continue to be made quarterly.
4. Canada Carbon Rebate (CCR): Helping with Carbon Pricing Costs
The Canada Carbon Rebate (CCR), previously known as the Climate Action Incentive Payment (CAIP ), is designed to help offset the additional costs associated with the federal carbon pricing plan. This plan aims to reduce greenhouse gas emissions and encourage Canadians to adopt greener practices.
Here’s what’s changing in July 2024:
- New Rural Supplement: Recognizing the unique challenges faced by those living in rural areas, the CCR will now include a new rural supplement. This supplement provides an additional 20% on top of the regular CCR amount for eligible residents in these areas. This helps offset the potentially higher costs of essential goods and services in rural locations.
Who is eligible? The CCR is available to residents of specific provinces who are 19 years of age or older. The specific provinces where the carbon pricing plan applies will be listed on the CRA website.
When will you receive the increased benefit? The first quarterly payment with the new rural supplement will be issued on July 15th, 2024. Following that, payments will continue to be made quarterly.
Important Reminders:
- File Your Taxes on Time: To be eligible for any of these increased benefits, you must file your income tax return on time, even if you have no income to report. Filing your taxes ensures the CRA has the most up-to-date information to determine your eligibility and calculate the correct benefit amount.
- Automatic Calculations: The CRA automatically calculates your eligibility and benefit amounts based on the information provided in your tax return. This means you don’t need to apply separately for each benefit.
- Stay Informed: The CRA website is a valuable resource for all information related to these benefits. You can find details about eligibility criteria, payment schedules, and how to contact the CRA if you have any questions.
Additional Support Programs:
While not directly impacted by increases in July 2024, here are a few additional programs offered by the CRA that can provide further financial assistance:
- Disability Tax Credit (DTC): The DTC helps eligible individuals with disabilities and their supporting family members reduce the amount of income tax they owe. A recent improvement makes it easier to apply for the DTC online, allowing both applicants and medical professionals to complete their sections digitally.
- Canada Dental Benefit (ended June 30, 2024): This temporary program provided financial support to families with young children for dental care received between July 1, 2023, and June 30, 2024. The deadline to apply for the second period has already passed.
Home Buyer Programs:
- First-Time Home Buyer’s Savings Account (FHSA): This program allows first-time homebuyers to save up to $40,000 tax-free towards a down payment on a home. Contributions made to the FHSA are deductible on income tax returns, and withdrawals used to purchase a home are tax-free.
- Home Buyers’ Plan (HBP): This program allows individuals to withdraw up to $60,000 from their Registered Retirement Savings Plans (RRSPs) to use as a down payment for a home. They then have a 15-year repayment period to contribute the withdrawn funds back into their RRSPs.
GST/HST New Housing Rebate:
This rebate helps make homeownership more affordable by offering a partial refund of the GST or HST paid on the construction or purchase of a newly built home.
Key Takeaways:
The CRA’s increased benefits in July 2024 aim to provide much-needed financial support to Canadians facing rising living costs. These increases target families with children, low-income earners, and residents in rural areas. Remember, to ensure you receive the benefits you’re entitled to, file your income tax return on time and keep your information updated with the CRA. By taking advantage of these programs and staying informed, you can ease the financial burden and achieve greater financial stability.
