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TAX TIP Get ready: the CRA is in its summertime benefit period!

Wednesday, 05 July 2023 02:34.PM
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We know how fast a Canada summer can pass us by, so we wanted to let you know about the Canada Revenue Agency (CRA)'s good news before you head off-grid to enjoy all of the natural wonders Canada has to offer!

Whether you already receive benefits and credits from the CRA, or not yet, we want you to know what's new and what's being updated this month since it might impact you!

This July will be exceptionally busy for CRA benefits and credits. We are offering new payments that you may be eligible for and adjusting existing amounts for the new benefit year!

What's new:

Period two of the Interim Canada Dental Benefit opens July 1: get ready to apply!

Did you take advantage of last year's dental benefit? Whether you did or not, you can still apply for the next period opening July 1, 2023.

In July, families with young children can apply for the first or second time to get the dental benefit. Eligible families can get up to $650 per child for dental care services that take place between July 1, 2023 and June 30, 2024.

Your children may be eligible for the benefit if:

• your child(ren) is under the age of 12 as of July 1, 2023
• your adjusted family net income is less than $90,000
• you do not have access to private dental insurance and
• their dental care expenses are not fully covered by another dental program provided by any level of government.

An additional payment may be available for some children if their dental costs are more than $650 in one of the benefit periods. You would only meet the criteria for the additional payment if you were not applying for both benefit periods for that child.

Learn more about eligibility and how to apply at Canada.ca/dental.

The new Grocery Rebate helps you at the check-out

If higher prices for essential items like food and personal care items are causing you undue financial stress, check your CRA's My Account this July for the Grocery Rebate.

In Budget 2023, the Government of Canada introduced a Grocery Rebate payment to help those who need it most keep up with rising costs.

The rebate will be issued July 5, 2023, alongside the regular GST/HST credit payment to individuals and families who were entitled to receive a GST/HST credit payment for January 2023.

This rebate is expected to offer up to $2.5 billion in targeted inflation relief to approximately 11 million low- and modest-income Canadians and families. Recipients could get up to an extra $467 for eligible couples with two children; up to an extra $234 for single Canadians without children; and an extra $225 for seniors, on average.

Learn more about the rebate at Canada.ca/grocery-rebate.

Advanced Canada workers benefit (ACWB) now year-round

You don't have to wait for tax season to get your Canada workers benefit (CWB) anymore. Part of the benefit will now be paid out year-round through the Advanced Canada workers benefit to help with expenses at any time of year.

As announced in the 2022 Fall Economic statement, the CWB will now be available in three payments through the ACWB.

Starting in July 2023, ACWB recipients will receive half of their 2022 CWB allotment in quarterly instalments in July, October and January. The remaining amount will be reconciled once they file their 2023 tax return next spring.

The CWB is a refundable tax credit to help individuals and families who are working and earning a low income. Read more at Canada.ca/canada-workers-benefit.

Most Atlantic provinces get the pollution price rebate (Climate Action Incentive) payment starting in July

Did you know that currently, residents of four provinces already receive a quarterly pollution price rebate payment? This July, that list of recipients will grow by three provinces to include Newfoundland and Labrador, Nova Scotia and Prince Edward Island, as more provinces begin to use the federal pollution pricing system.

These three Atlantic provinces will join residents of Ontario, Manitoba, Saskatchewan and Alberta who already receive the benefit. Payments will be issued between July 14 and July 21. Please allow to the end of July for your payment to arrive before calling us. We would also like to remind Canadians that it can take up to 10 business days for a payment to arrive by mail or by direct deposit. Learn more about who is eligible and province-specific payment amounts at Canada.ca/cai-payment.

Benefit and credit amounts are adjusted each July – check your notices!

Each July, most federal benefits and credits are adjusted to support the rising cost of living. Your benefits may also be adjusted if your family situation has changed (like having a new baby or ending a relationship).

Some benefits that could be adjusted include the Canada child benefit (CCB), the GST/HST credit, and related provincial and territorial payments, just to name a few.

These annual adjustments allow benefit rates to continue to offer the important financial support they were meant to – even when the price of hand-soap doubles! Check your Notice of Redetermination for details specific to your account.

Remember, most benefits can also be used to pay down any government debt you might have (except for the CCB which can only pay down CCB debt). Your Notice of Redetermination will let you know if any of your benefits or credits have been applied to a debt.

Mark your calendars

• July , applications open for period two of the interim Canada Dental Benefit
• July 5, Grocery Rebate and GST/HST credit payment day
• From July 14 - 21, Climate action incentive payments will be issued (first quarterly payment for residents of Newfoundland and Labrador, Nova Scotia and Prince Edward Island)
• July 20, Canada child benefit payment day
• July 28, first quarterly payment of the Advanced CWB

Want to know more?

Create a CRA My Account with us if you don't have one already.

Here's what My Account can do for you:

• Allow you to apply for certain benefits and credit payments that aren't automatic
• Show you your notices of assessment or reassessment that indicate your benefit and credit entitlement amounts
• Let you track the status of certain requests that were submitted to the CRA
• Tell you if you have an outstanding debt with the CRA that might impact your benefit or credit payment amounts
• Let you sign up for direct deposit to get these benefit payments more quickly
  •  Direct deposit also allows you to receive your benefit and credit payments seamlessly in the event of adverse weather events or other unexpected disruptions
• Allow you to view and manage your personal information with the CRA
• Show you if you have any uncashed cheques with the CRA to reunite you with the money you deserve!

Need to call? It is possible our phone lines may be busier than usual around these payment dates. That may mean some call wait times will be longer than normal. You can check on call wait times on Canada.ca before you dial.

For smoother telephone service:

Help us serve you better when you do call by having the following ready when you ring:

• your personal info:
  •  Social Insurance Number (SIN)
  •  full name
  •  date of birth
  •  complete address
• your tax return, notice of re/assessment or other tax document OR
• be signed into your My Account.

The CRA wants to connect you with the benefits and credits you're entitled to this summer. Take the time to visit Canada.ca or sign into My Account to see if there are any benefits coming your way to support you and your family this summer.

SOURCE: Canada Revenue Agency

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