Canada's Climate Action Incentive Payment Could Save You Money On Your Taxes This Year

Depending where you living the country, you might qualify for the Climate Action Incentive Payment (CAIP) program on your taxes and, this year, eligible folks can get even more than previous years.

The CAIP was set up by the Canadian government in an effort to help offset the costs of federal pollution taxes in certain parts of the country.

People living in Alberta, Saskatchewan, Manitoba and Ontario are eligible for this chance to get some money back at tax time.

However, according to the tax experts at H&R Block, some changes are coming to the incentive this year that could mean more back in your pocket.

First off, the program is changing from a one-time credit that goes towards your tax return to four regular installments made throughout the year.

You will still need to have completed your taxes that year to be eligible, however.

Along with this change in delivery, there will actually be an increase in the payment by 24% for Ontarians from last year, which could look like around $373 for households with just one individual, plus $183 for spouses and $93 for each child. This could mean that a family of four receives up to $745 back throughout the year.

The payments will automatically go out to eligible people in April, July, October and January and will be issued via direct deposit — if you have that set up with the Canada Revenue Agency (CRA). If you don't have direct deposit, you can get that set up on the CRA website.

Along with that, certain folks living in rural areas of eligible provinces can also get an additional 10% back due to the different energy needs that rural Canadians face.

Of course, this isn't the only credit or benefit you might qualify for on your taxes. Depending on what your 2021 looked like, there are tons of ways for you to get some funds back at tax time.

There are benefits for folks who may have bought a new house, have moved, are going to school and all sorts in between.

The deadline for taxes this year is April 30, but due to that being a Saturday, the CRA is allowing Canadians to submit their taxes up to May 2.

This article's cover image was used for illustrative purposes only.