Hugh: Notice Some Extra Money in Your Account Today? Here’s Why
Written by Hugh Campbell on July 21, 2023
This week many Canadians got a welcome surprise in the form of a deposit into their bank accounts. Whether you knew it was coming or not, a bit of extra scratch is always a good thing, but what is it? The deposit comes from the CRA and is part of the Climate Action Incentive Payments (CAIP). It’s a tax-free payment to Canadians in certain provinces offset the costs of federal pollution pricing. Previously, Newfoundland and Labrador was exempt, but with the extra fuel tax that came into effect on July 1st, residents of the province are now eligible for the payment. How much you get will depend on your status as a taxpayer, as individuals qualify for $164, spouses or common-law partners will receive $85, and $41 should be deposited for each child under 19 years of age. Even more welcome news is that you’ll be seeing more of these payments going forward. For the first year of the new tax, three CAIP payments will be made to residents of Newfoundland and Labrador, arriving in July 2023, October 2023, and January 2024. In following years, four payments will be made.