The Climate Action Incentive Payment or CAIP will now be paid as a quarterly benefit just like the GST credit. If you are entitled, you will automatically receive your CAIP four times a year, starting in July 2022.
What is the CAIP
The CAIP is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing. It consists of a basic amount and a supplement for residents of small and rural communities.
Who is eligible for the CAIP?
To be eligible, you must be a resident of Manitoba on the first day of the payment month and the last day of the previous month. You must also meet at least one of these conditions during the same period:
- You are 19 years of age or older
- You have a spouse or common-law partner
- You are a parent and your child lives with you
Do you have an eligible child?
You have an eligible child if all the following conditions are met at the beginning of the payment month:
- your child is under 19 years of age
- your child lives with you
- you are at least 40% responsible for the care of your child
- your child is registered for the Canada child benefit
If you are eligible for the Canada child benefit, a credit for each eligible child will be included in the calculation of the CAIP.
If you and your ex-spouse share custody of your child/children, if entitled, you will receive payments equal to 50% of the amount you would have received if the child resided with you full-time.
Do you need to apply for the CAIP?
You do not need to apply to receive the payment for the CAIP. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return and will send you payments if you’re entitled to them.
If you have a spouse or common-law partner, only one of you can get the payment for the family. The payment will be paid to the spouse or common-law partner whose tax return is assessed first. No matter which one of you receives the payment, the amount will be the same.
To continue receiving your payments for the CAIP, you and your spouse or common-law partner, must continue to file an income tax and benefit return every year.
The CAIP includes a supplement for residents of small and rural communities. Residents of the following communities in South East Manitoba DO NOT qualify for the supplement: Springfield, Taché, Ritchot. You are too close to Winnipeg to qualify (according to CRA).
How much you can expect to receive?
The amount you receive depends on your family situation and the province you reside in.
In Manitoba, the estimated amount you will receive is $360 for the primary taxpayer, plus $180 for a spouse, plus $90 for each child. Plus 10% supplement for those of us living in the rural areas.
The actual amounts paid starting July 2022 may be higher. CRA has not yet announced what the amounts will be. You will receive a notice prior to July advising of the payment amount and which of the spouses will receive it.
When will you get your payments?
If you’re entitled to receive CAIP, you can expect to receive them on the 15th of April, July, October, and January.
Once your 2021 Income Tax and Benefit return is processed and if you are entitled, the first payment will be issued on July 15, 2022, and will include a retroactive amount for April 2022.
If you get your tax refund and/or the GST credit by direct deposit, you will also get your CAIP by direct deposit. If you receive these payments by cheque, then you will also get your CAIP by cheque.
If you have a tax debt with the CRA, the CAIP will be applied to amounts owing for income tax balances or amounts owing to other federal or provincial government programs.
CRA is now open
CRA is now open for e-filing. We can now electronically file your 2021 taxes. And earlier unfiled years can be filed, too.
Remember that we can access most tax slips electronically from CRA, so don’t wait for your tax slips to come in the mail. Especially the ones from the government like OAS, CPP, EI or EIA. We can get these for you if we have your signed authorization. If you have the rest of your tax information, you can contact us now!
March 15 Instalment
A reminder to those of you that are required to make quarterly installment payments. The first one for the 2022 tax season is due March 15. You should have received a letter (or on-line notice) from CRA in February notifying you of your 2022 instalment requirements. Any missed payment are not penalized, but you may be charged interest on any missed or late payments.
Vaccinated & Masked
For the safety and health of our clients, our employees, and the community, all our staff are fully vaccinated. We request all clients dropping off or picking up at our office continue to wear masks even after the government lifts their public health restrictions. We continue to follow the public health recommendations of wearing masks in public places including our office.
Anni Markmann is a Personal Income Tax Professional and Certified Financial Planner; living, working, and volunteering in our community. Contact Ste Anne Tax Service at 204.422.6631 or 36 Dawson Road in Ste Anne (near Co-op) or info@sataxes.ca