As we’re in the midst of income tax season, I want to ensure residents in Charleswood-St. James-Assiniboia-Headingley are aware of the new Climate Action Incentive (CAI) and are properly claiming it on their taxes.
Starting this year, it will no longer be free to pollute in Canada because the cost of inaction is much greater than the cost of addressing climate change.
The Government of Canada has committed to return all direct proceeds collected in Manitoba to residents in the province through CAI payments and investments in energy efficiency to reduce emissions, save money, and create jobs.
This means that an average family of four will receive $339 through the CAI when they file their taxes this year. By contrast, the average impact for a household in Manitoba from pricing pollution is estimated to be $232.
Individuals in Manitoba will receive the tax-free CAI payment after filing their 2018 tax return. In Manitoba, these payments will be calculated as follows: $170 for a single adult or the first adult in a couple; $85 for the second adult in a couple (single parents will receive this amount for their first child; and $42 for each child in the family (starting with the second child for single parents).
People who live in small and rural communities will receive a supplementary CAI amount. This supplement will be an additional 10 per cent of the payment amount to which they are entitled.
In order to receive the CAI payment, you must file your tax return. This will involve filling out a short schedule identifying the number of adults and children in the family unit for which payments would be claimed. There will be one claim per family.
To claim the CAI payment, you must complete your 2018 income tax and benefit return, complete Schedule 14 included with your return, and file your return with the Canada Revenue Agency. The CAI is line 449 on your return.
The CAI payment will be automatically applied to your balance owing for the year, if applicable, or may increase the amount of any refund you may be entitled to.
Don’t forget that the deadline to file your 2018 tax return is April 30, 2019.
If you have further questions about the Climate Action Incentive, visit Canada Revenue Agency’s website or contact my office at 204-984-6432 or firstname.lastname@example.org. If you require assistance preparing your 2018 tax return, my office is still accepting appointments for our free income tax clinics for simple tax situations. Please feel free to contact my office to book an appointment.
This column will be featured in The Metro and The Headliner in March. To view this column online, visit Canstar Community News’ website here.