As tax season arrives, it’s natural to feel overwhelmed by the tasks at hand. We recognize that the hustle and bustle of this time can bring about numerous inquiries, particularly regarding the credits and deductions available to you. To assist you in optimizing your return this season, we have compiled a list of the most frequently claimed credits in your province/territory.
Alberta Tax Credits and Benefits in your province
If you’re a resident of Alberta, there are several tax credits and benefits that you may qualify for. Let’s take a look at one of them:
Alberta Child and Family Benefit (ACFB)
The Alberta Child and Family Benefit (ACFB) offers financial support to lower- and middle-income families with children under the age of 18. To be eligible for the ACFB, you must also qualify for the related federal Canada Child Benefit (CCB) and the GST/HST credit. This tax-free benefit amount varies based on your family’s income and the number of children under 18.
ACFB payments are disbursed by the Canada Revenue Agency (CRA) in four installments throughout the year: August, November, February, and May.
British Columbia Tax Credits and Benefits
If you reside in British Columbia (BC), there are several credits and benefits specifically tailored to residents of your province. Here are some notable ones:
BC Climate Action Tax Credit
The BC Climate Action Tax Credit aims to alleviate the impact of carbon taxes for low-income individuals and families. This tax-free credit is available to BC residents who are 19 years or older and file their tax return annually. Eligibility is straightforward: you just need to be a BC resident.
Payments for the BC Climate Action Tax Credit are issued alongside your GST/HST credit payments four times a year: in July, October, January, and April. The credit amount is determined by your family situation and adjusted family income. For the period of July 2021 to June 2022, you can receive up to $174 per person, which also applies to a spouse or common-law partner. Additionally, you can receive up to $51 per child ($174 for the first child in a single-parent family). Each payment can be up to $43.50 for a single person or couple, and up to $12.75 per child. The credit is gradually reduced for single taxpayers with incomes exceeding $35,748 and couples and single parents with incomes exceeding $41,706.
Farmer’s Food Donation Tax Credit
The Farmer’s Food Donation Tax Credit aims to incentivize farmers in BC to donate certain agricultural products to registered charities, such as school meal programs and food banks. Eligible donations include vegetables, meats, grains, and more.
This credit is worth 25% of the value of the donated products and can be claimed in addition to the charitable donation tax credit. To qualify for this credit, you must be a farmer or the spouse (including common-law partners) of a farmer who has made donations of agricultural products between February 16, 2016, and January 1, 2024.
Manitoba Tax Credits and Benefits
If you are a resident of Manitoba, there are several credits and benefits that are specific to your province. Here are some of the most common ones:
Manitoba Education Property Tax Credit (EPTC)
As a Manitoba resident, a portion of your rent or property tax contributes to funding schools. Through the Manitoba Education Property Tax Credit (EPTC), you may be eligible to claim up to $700 (or $1,100 for seniors) for your contribution to the school system. You can claim this credit on your municipal property tax statement or through your tax return. To qualify, you must have been a Manitoba resident at the end of the year and have paid rent or school tax on your Manitoba home during the year. Additionally, you should be at least 16 years old at the end of the year.
Manitoba Primary Caregiver Tax Credit
If you are a Manitoba resident and the primary caregiver for a spouse, relative, friend, or neighbor who lives at home in Manitoba, you may be eligible to claim the Manitoba Primary Caregiver Tax Credit. This refundable credit allows you to claim a flat rate of $1,400, regardless of the number of individuals you have cared for, as long as you were their primary caregiver for at least 90 days.
Manitoba Fertility Treatment Tax Credit
If you or your spouse or common-law partner underwent fertility treatment in 2021 at a licensed medical practitioner or infertility treatment clinic in Manitoba, you may be eligible for the Manitoba Fertility Treatment Tax Credit. This credit is equal to 40% of the costs of treatment, and you can claim up to $20,000 for the cost of your treatments. This means you could be eligible for up to $8,000 per year as a refundable tax credit. There is no limit on the number of treatments you can claim, as long as the claimed amount does not exceed the maximum yearly limit. Either you or your spouse/common-law partner can claim this credit, but it cannot be split between both of you.
New Brunswick
If you are a resident of New Brunswick, there are several credits and benefits that are specific to your province. Here are some of the most common ones:
New Brunswick Low-Income Tax Reduction
The New Brunswick Low-Income Tax Reduction is designed to help low-income residents of New Brunswick reduce their provincial tax payable. You can claim this reduction if you were a resident of New Brunswick on December 31, 2021, and your family income falls below a certain threshold. For more information on the low-income tax reduction, you can refer to the online help center.
New Brunswick Seniors’ Home Renovation Tax Credit
If you are 65 years of age or older, or live with a senior family member, and are a resident of New Brunswick, you can claim a refundable tax credit for home renovations that make your home safer and more accessible. To be eligible for this tax credit, you or someone on your behalf must have paid for the renovations made to your principal residence.
Newfoundland and Labrador
For residents of Newfoundland and Labrador, there are specific tax credits and benefits available. Here is one of them:
Physical Activity Tax Credit
New for the 2021 tax season, residents of Newfoundland and Labrador can now claim the Physical Activity Tax Credit. These credits in your province allows you to claim up to $2,000 per household if you or a family member participated in a sport or recreational activity, such as soccer, skating, or swimming, during the year. The credit is non-refundable and aims to assist with the cost of registering for these programs. It provides a maximum tax savings of $174 per child.
Also read: Tax Planning Strategies for Canadian Individuals and Families
Income Supplement
The income supplement is a refundable tax credit available to low-income individuals, families, or individuals with disabilities in Newfoundland and Labrador. The eligibility and amounts for the income supplement are as follows:
- Single individuals can claim $450.
- Couples (spouses or common-law partners) can claim $510.
- An additional $200 can be claimed for each child younger than 19.
The income supplement is disbursed along with GST/HST credit payments in July, October, January, and April.
Newfoundland and Labrador Seniors’ Benefit
The seniors’ benefit is a refundable tax credit specifically designed for low-income seniors in Newfoundland and Labrador. The eligibility and payment details for the seniors’ benefit are as follows:
- Single seniors aged 65 or older at any time in 2021 can receive a tax-free amount of $1,313.
- Married or common-law couples with at least one senior and an adjusted family net income of $29,402 or less are eligible for the benefit.
- If the adjusted family net income is between $29,402 and $40,663, the payment will be adjusted based on income.
Similar to the income supplement, the seniors’ benefit is disbursed along with GST/HST credit payments in July, October, January, and April.
Northwest Territories
Residents of the Northwest Territories can claim the following credit:
Northwest Territories Cost of Living Tax Credit
The Northwest Territories cost of living tax credit is a refundable credit in your province aimed at offsetting the high cost of living in the NWT. This credit can be claimed on the tax return and is limited to one person. It cannot be split with a spouse or common-law partner. More information about this credit can be found on the CRA website.
Nova Scotia
Residents of Nova Scotia can take advantage of the following credits:
Poverty Reduction Credit
The poverty reduction credit provides tax-free quarterly payments to eligible recipients. The eligibility criteria and payment amount, which can be up to $500 per year, are determined by the Department of Community Services based on the previous year’s tax return. No separate application is required for this credit.
Nova Scotia Affordable Living Tax Credit (NSALTC)
The Nova Scotia affordable living tax credit is a tax-free amount available to low-income individuals and families. The credit amount is $255 per family, and if there is a spouse or common-law partner, it needs to be split. An additional $60 per child is provided for dependents. The credit is adjusted for families with adjusted net family income over $30,000. The NSALTC is disbursed along with GST/HST credit payments in July, October, January, and April, and eligibility is determined automatically based on the tax return filed with the CRA.
Nunavut
Residents of Nunavut can claim the following credits in your province:
Nunavut Cost of Living Tax Credit
The Nunavut cost of living tax credit is a refundable credit aimed at offsetting the high cost of living in Nunavut. Additional amounts may be available for single parents. More information about this credit can be found on the CRA website.
Education and Textbook Tax Credits
Full-time post-secondary students can deduct $465 per month of schooling from their taxable income, while part-time students can deduct $140 per month.
Ontario
Residents of Ontario can benefit from various credits, benefits, and deductions, including:
Ontario Trillium Benefit
The Ontario Trillium Benefit (OTB) helps Ontario residents with their energy costs and provides relief from sales and property tax. The OTB consists of three tax credits: Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit, and Northern Ontario Energy Credit. Eligibility requires meeting the criteria for at least one of these benefits, filing a tax return annually,