Making the Most of Your Tax Benefits in 2024

Tax benefit implies any clause or condition that allows Canadians to lower their tax liability or the amount owed to a federal or provincial tax authority through deductions or tax credits.

The CRA, Canada’s revenue agency, has a wide range of Tax benefits that cover child rearing, dental, disability, and other circumstances. Knowing what benefits you are entitled to can save you a pretty penny and will ensure the stability of your finances.

This article will cover the most relevant tax breaks available for the season and how you can avail of them in 2024.

Canada Child benefit

The Canada Child Benefit (CCB) is a tax-free monthly payment that offsets the cost of raising children under the age of 18. It further covers child disability benefits with additional provisions through provincial and territorial programs.

To be eligible for the CCB, you need to meet the following conditions:

• Live with a child under the age of 18
• You are primarily responsible for the care and upbringing of the child
• You are a resident of Canada
• You or a spouse are either a Canadian citizen, permanent resident, protected person, temporary resident who has resided in Canada over the previous 18 months, or a person registered under the Indian Act.

The amount you are entitled to under the CCB varies according to the number of children under your care, the age of the children, and your adjusted family net income. The maximum you can receive for each child is $7,737 per year.

The GST/HST credit

The GST/HST credit is a tax-free quarterly payment for individuals with low to modest incomes, allowing them to balance out their GST or HST payments for the year. The CRA automatically considers your case for the credit once you file your taxes, even if you have no income to report.

The eligibility criteria include:

• Being at least 19 years old
• Be a Canadian resident for income tax purposes.

The Canada Dental Benefit

The plan aims to make dental healthcare accessible to a wide range of Canadians who were previously kept away by the cost of dental care.

The complete application schedule, according to the CDCP portal, is as follows:

In the meantime, an interim Canada Dental Benefit makes eligible families making less than $90,000 per year eligible for dental care for a child under 12 years if they do not have access to a private dental insurance plan.

A tax-free payment of $260, $390, or $650 is made available for any eligible child depending on their adjusted family net income, with a maximum of two payments per child.

Currently, applications are open until June 24, 2024, for families who received dental care between July 1, 2023, and June 30, 2024.

The Disability tax credit (DTC)

The DTC is a non-refundable tax credit for people with disabilities or a family member responsible for their care. The non-refundable nature means they can only reduce an individual’s tax liability to zero, with no payouts for any remaining credit.

However, those suffering from severe or prolonged impairment may apply for credit, which can be claimed later.

In case you’re eligible for a Disability tax credit, you can submit an application before filing your tax returns to avoid possible delays.

The Climate Action Incentive payment (CAIP)

The CAIP is a tax-free benefit that helps Canadians offset the cost of federal pollution pricing through regulatory charges on fossil fuels.

It comprises a basic amount and an additional 10% supplement for residents of small and rural communities who bear the brunt of these penalties, given their reliance on fossil fuels. The base amount varies by province, as shown on their website

Canada Workers Benefit

The Canada Workers Benefit is a refundable tax credit for working individuals and families earning a low income. The basic amount under this benefit can reach a maximum of $1,428 for an individual or $2,461 for families. It also comprises a disability supplement with a maximum limit of $737 for both individuals and families.

The CRA will consider factors like your marital status, province of residence, earned income, adjusted family net income, and eligible dependents when deciding the amount you are entitled to as benefits.

The Canada Training credit

The Canada Training Credit (CTC) is a refundable tax credit that covers the Tuition, training fees, and any other course fees for eligible Canadians. The program requires you to fulfill the following conditions:

• You must file an income tax and benefit return for the year
• Your Canada training credit limit (CTCL) for the year must be more than zero
• You must be a resident of Canada throughout the year
• Your Tuition or other fees must be paid to an eligible educational institution, and the fees should also be eligible for an existing tuition tax credit.
• You must be between 26 and 66 years old at the end of the year.

Know your Tax Benefits

As a responsible Canadian, you should be aware of your tax benefits and government incentives meant to alleviate your tax burdens. The ones we covered are still the tip of the iceberg, and depending on your province and other qualifying needs, you may be eligible for more - from deductions for contributions to retirement savings plans and education expenses to credits for charitable donations and medical expenses.

Understanding and effectively utilizing your tax benefits can significantly impact your financial situation and ensure you won’t break another sweat when tax season rolls around.