Many Ontarians were issued a double carbon tax rebate payment Friday.
The Climate Action Incentive Payment (CAIP) is a tax-free amount paid to individuals in Ontario, Alberta, Saskatchewan and Manitoba to help offset the costs of the federal carbon tax.
The four provinces are the only ones with the federal pricing systems in place.
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Albertans set to receive double carbon tax rebate this week
All other provinces have their own carbon-pricing systems that meet federal minimum standards.
The federal government claims that the amount individuals receive through the CAIP is more than they pay as a result of the federal carbon pollution pricing system.
The payment issued to Ontarians Friday included a retroactive amount for April.
According to the federal government website, Ontarians can expect an overall credit of $373 in 2021 for an individual, $186 for a spouse or common-law partner, $93 per child under 19, and $186 for the first child in a single-parent family.
For residents of small and rural communities, the payment includes a rural supplement of 10 per cent of the base amount.
The year 2022 is the first time the rebate is being paid quarterly — with payments on the 15th of April, July, October and next January. Previously it could be claimed as a refundable tax credit.
“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,” the federal government says.
“If you get your tax refund by direct deposit, you will also get your CAIP by direct deposit.
“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.”
If the CAIP isn’t received on the expected date, the government asks that you wait 10 business days before contacting them.
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