Climate Action Incentive (CAI) payment amounts update for 2022-23 - Ontario, Manitoba, Saskatchewan and Alberta
The government has proposed to deliver CAI payments on a quarterly basis starting in 2022. Payments will start in July 2022 with a "double-up" payment that will return proceeds from the first two quarters of the 2022-23 fuel charge year (April-June and July-September), followed by single quarterly payments in October 2022 and January 2023.
Reminder: The CAI consists of a basic amount and a 10% supplement for residents of small and rural communities. To receive the basic amount, the taxpayer must file a tax return, even if they received no income during the year. If they are eligible for the supplementary amount, they will need to complete Schedule 14 and include it with their tax return.
Our in-house Climate Action Incentive estimates for the relevant four provinces, namely Ontario, Manitoba, Saskatchewan and Alberta, have been updated accordingly to take into account the CAI amounts for 2022-2023.
For more information on the payment amounts made to individuals and families in 2022-2023, refer to the backgrounder published by the Department of Finance Canada.
Quebec Budget 2022: New Special One-Time Cost of Living Tax Credit
Automatic payment of credit to eligible residents
In the budget speech of March 22, 2022, the Government of Quebec announced the implementation of a new special one-time refundable tax credit to help individuals in Quebec deal with the rising cost of living.
Note that this tax credit will be paid automatically to eligible individuals when their 2021 Quebec income tax return is processed. Therefore, they do not have to claim it.
As for individuals who have already filed their tax return, they will receive the tax credit by the end of May 2022.
To be eligible, an individual must generally, as of December 31, 2021, be 18 years of age or older, reside in Quebec and have eligible residency status. In addition, they must file their Quebec income tax return for the year 2021 and have earned for that same year a net income of less than $105,000.
For more information on this new refundable credit, refer to the information page published by Revenu Québec.
Notice: The result obtained by the software will be different from that of the notice of assessment
As per Revenu Québec's guidelines, the tax software must not modify the income tax return of eligible individuals to add this new tax credit.
If the individual is eligible for the credit, when processing their return, this amount will be automatically added by Revenu Québec.
Therefore, be advised that the result shown on the notice of assessment will differ from the result calculated in the software by this amount.
Addition of an in-house work chart to estimate the amount of the tax credit and addition of a paragraph in the client letter
An in-house work chart has been implemented to allow you to view the amount to which eligible individuals will be entitled. Keep in mind that this amount is not included in the result of the return calculated by the software, in accordance with Revenu Québec's guidelines.
However, this amount will be indicated in the client letter. Refer to our Changes pertaining to the client letter section for more details.
