Webinar - Individuals with a modest income

Transcript

Slide 1 – Get your benefits and credits!

[Phil]: Hello, and welcome.

My name is Phil and I’m in Toronto. My pronouns are he/him. I have a shaved head and a short, cropped, salt and pepper beard. I’m wearing glasses and a blue collared shirt.

I’m with the Canada Revenue Agency, or CRA for short.

I’m very happy to be here today to talk about the benefits of doing your taxes and what you need to get them done.

[Visual]: Individual sitting at a table with their laptop open and an infant sitting on their lap.

Slide 2 – Land Acknowledgment

[Phil]: I wish to acknowledge that the land on which I am presenting from is the unceded territory of many nations including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples.

The land is also home to many diverse First Nations, Inuit, and Métis people. And, it is covered by Treaty 13 with the Mississaugas of the Credit.

Given we are meeting virtually, I also want to acknowledge the lands where you are gathered from coast to coast. I invite you to take a moment of silence to think about the territory where you reside.

[Visual]: An eagle, narwhal and fiddle icon.

Slide 3 – Outline

[Phil]: Today, we will cover:

• the benefit and credit payments you may be eligible for
• the different ways to do your taxes
• how you can get free tax help, and
• the importance of keeping your personal information updated with the CRA

I’ll conclude by going over the CRA’s digital services, like My Account. I will also give you tools to protect yourself from scams.

[Visual]: Five individuals are sitting together.

Slide 4 – Get the benefits and credits you may be eligible for!

[Phil]: Life is expensive. Benefit and credit payments can make a difference by helping you pay rent, buy groceries, and get childcare.

You may be eligible for benefit and credit payments that the CRA administers, such as:

• the Canada child benefit
• the goods and services tax/harmonized sales tax credit, more commonly known as the GST/HST credit
• the Canada Carbon Rebate
• the Canada workers benefit
• the disability tax credit
• the child disability benefit
• and the multigenerational home renovation tax credit

You may also be eligible for related federal, provincial, or territorial payments.

I will go over the CRA benefits and credits in my presentation. More information can also be found at canada.ca/every-dollar-counts.

Slide 5 – Frequently asked question 1

[Phil]: A question we get often is:

What is the difference between a benefit and a credit?

In most cases, a benefit is an amount you receive regularly. For example, it could be paid monthly or four times a year.

You usually fill out a form to apply for a benefit, and you can apply at any time.

Some examples are the Canada child benefit and the child disability benefit.

Credits, on the other hand, are claimed when you do your taxes.

There are two kinds of credits.

A refundable tax credit can reduce the tax you owe, bring it to zero, or create a refund.

A non-refundable tax credit can reduce the amount of tax you owe but won’t create a refund.

Some examples are the disability tax credit and the tuition tax credit.

Slide 6 – Canada child benefit

[Phil]: Let’s begin with the Canada child benefit, or the CCB for short.

This benefit is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18.

Each year, it may provide up to $7,787 for each child under 6, and up to $6,570 for each child aged 6 to 17.

You need to apply for all children in your household.

Apply if you have not applied before and no one else is receiving the benefit for your children.

[Visual]: An individual is working a laptop. In the background, two children are doing homework.

Slide 7 – Are you eligible for the Canada child benefit?

[Phil]: To be eligible for the CCB, you must meet all the following conditions:

• You must live with the child, and the child must be under 18.
• You must be primarily responsible for the care and upbringing of the child.
• And you must be a resident of Canada for tax purposes.

You or your spouse or common-law partner must also be one of the following:

• a Canadian citizen
• a permanent resident
• a protected person
• a temporary resident who has lived in Canada for the previous 18 months, and who has a valid permit in the 19th month, or
• an individual who is registered, or entitled to be registered, under the Indian Act

You are primarily responsible for the care and upbringing of the child if you:

• supervise the child’s daily activities and needs
• make sure the child’s medical needs are met and
• arrange for childcare when necessary

You are not considered the primary caregiver if a child welfare agency is legally, physically, or financially responsible for the child.

In this case, the agency may receive the children’s special allowance for their care.

Slide 8 – When should you apply for the Canada child benefit?

[Phil]: You should apply for the CCB as soon as your child is born, after a child starts to live with you, or after you or your spouse or common-law partner meet the eligibility conditions.

You should apply even if you share custody of a child or a child is living with you for a set or temporary period of time.

[Visual]: An individual is holding a baby. Both are smiling.

Slide 9 – Three ways to apply for the Canada child benefit

[Phil]: If you meet all eligibility criteria, you can apply in one of three ways:

1. You can use the Automated Benefits Application when you register your newborn’s birth with your province or territory. You can consent to securely sharing the information on your birth registration form with the CRA. This service is not available in Nunavut;
2. You can use the Apply for child benefits feature in the CRA’s online portal, My Account; or
3. You can fill out Form RC66, Canada child benefit application, and send it to the CRA.

Consider using My Account or the Automated Benefits Application to avoid potential delays with mail.

If you apply in My Account or by mail, you will need to provide proof of your child’s birth. This could be a birth certificate or passport.

You should only apply once. Re-applying using a different method may cause your payments to be delayed.

You don’t have to re-apply every year, but you and your spouse or common-law partner, if applicable, must do your taxes every year.

If you have another child after you’ve applied, you will need to apply for that child and any subsequent children.

Also, if you were eligible for the CCB for prior years and had not applied previously, you can request a retroactive payment for a period of up to 10 years.

Slide 10 – Do you share custody of your child?

[Phil]: If you share custody of your child, it can affect your payments.

The CRA considers it shared custody when the child lives part of the time with you and part of the time with another individual.

The child must live at a different address at least 40% of the time or on an approximately equal basis.

When the child lives with them, both people must be primarily responsible for the child’s care and upbringing.

Each eligible person will get half of the payment they would have received if the child lived with them full time.

You are not in a shared custody situation if your child lives in the same home with you and the other parent.

[Visual]: Individual in a kitchen is bent over looking into an oven with a child by their side and they are both laughing.

Slide 11 – GST/HST credit

[Phil]: The GST/HST credit is a tax-free payment made four times a year, for people with low and modest incomes.

It helps offset the GST or HST they pay on goods and services.

To get it, do your taxes every year, even if you have no income.

The CRA will use this information to confirm whether you are eligible and for how much.

Single people can receive up to $519 per year.

While those married or common-law, can receive up to $680.

And, up to $179 per year may be paid for each child under 19.

[Visual]: An individual sitting with their laptop open and is smiling.

Slide 12 – Eligibility for GST/HST credit

[Phil]: You may be eligible for this credit if you are a resident of Canada and at least one of the following applies:

1. You are 19 or older before the month when the CRA issues a payment;
2. You have, or previously had, a spouse or common-law partner; or
3. You are, or previously were, a parent and live, or lived, with your child.

Slide 13 – Canada Carbon Rebate

[Phil]: Just like the GST/HST credit, you may be eligible for the Canada Carbon Rebate when you turn 19.

This is a tax-free payment made four times a year, and it helps offset the cost of federal pollution pricing. The amount you receive depends on your family situation and the province you live in.

It’s available to residents of Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island.

It consists of a basic amount and a supplement for residents of small and rural communities.

To claim the rural supplement, you and your spouse or common-law partner must tick the box on page 2 of your income tax and benefit return.

As the rural supplement is already included in the basic amount for Prince Edward Island, individuals from that province don’t have to claim it on their tax return.

[Visual]: An individual is filling out a form on a desk.

Slide 14 – Canada Carbon Rebate example

[Phil]: For instance, based on the 2023 tax year, single people in Alberta can receive up to $900 per year, while those who are married or common-law can receive up to $1,350.

A couple with one child living in Alberta could be eligible to receive up to $1,575 per year.

To get this credit, do your taxes every year, even if you have no income.

Slide 15 – Canada workers benefit

[Phil]: The Canada workers benefit, or CWB for short, is a refundable tax credit for those working and earning a low income.

It’s money to help with the rising cost of living.

It has two parts:

1. a basic amount and
2. a disability supplement for those with an approved disability tax credit certificate

For single people, the maximum basic amount is $1,590 a year.

For families, the maximum basic amount is $2,739 a year.

The maximum CWB amount will be different for residents of Alberta, Nunavut, and Quebec.

[Visual]: Headshot.

Slide 16 – Eligibility for the Canada workers benefit

[Phil]: Let’s look into the eligibility for the Canada workers benefit.

In addition to having earned working income, you must:

• be a resident of Canada for income tax purposes throughout the year, and
• be 19 or older on December 31.

However, you may be eligible if you are under 19 and lived with your spouse or common-law partner, or your child, on December 31.

Slide 17 – Eligibility for the Canada workers benefit ̶̶ Continued

[Phil]: You cannot claim the Canada workers benefit:

• if you were enrolled as a full-time student at a designated educational institution for a total of more than 13 weeks in the year, unless you had an eligible dependant at the end of the year
• if you were confined to a prison or similar institution for a period of at least 90 days during the year
• or if you don’t have to pay tax in Canada because you are an officer or servant of another country, such as a diplomat, or you are a family member or employee of such a person

To claim, your adjusted net income can’t be more than $36,749 for individuals, or of more than $48,093 for families.

If you are married or common-law, only one of you will receive the CWB for your family.

Slide 18 – How to claim

[Phil]: You claim the Canada workers benefit when you do your taxes.

If you use certified tax software, follow the instructions and it will automatically calculate the benefit for you.

If you file on paper, fill out Schedule 6. It can be found in the tax package for your province or territory.

Automatic payments are issued to people who were entitled to the benefit in the previous year.

For more information, visit canada.ca/canada-workers-benefit.

[Visual]: An individual is sitting at a desk and working on a laptop.

Slide 19 – Frequently asked question 2

[Phil]: A question we get often is:

Can I apply for the Canada workers benefit if my income comes from spousal support?

Spousal support is stated in a court order or written agreement. It’s for a current or former spouse or common-law partner. Since it isn’t income earned from working, it doesn’t meet the eligibility criteria for the Canada workers benefit.

Slide 20 – Disability tax credit (DTC)

[Phil]: The disability tax credit, or DTC for short, is a non-refundable tax credit.

It helps people with disabilities, or their supporting family members, reduce the amount of income tax they may have to pay.

By doing so, the DTC offsets some of the extra costs often experienced by persons with disabilities.

Even if you do not have taxable income, there are other benefits to applying for the DTC.

Being approved can help you get other federal programs such as the child disability benefit, the Canada workers benefit disability supplement, and the multigenerational home renovation tax credit.

I will speak more on these programs shortly.

For information on these programs, go to canada.ca/every-dollar-counts.

[Visual]: An individual with a prosthetic leg is sitting on a couch and looking at a cellphone.

Slide 21 – Child disability benefit

[Phil]: The child disability benefit is for families caring for a child under 18 who is eligible for the Canada child benefit, or the CCB for short, and the DTC. It is a tax-free payment of up to $3,322 annually per eligible child.

If you receive the CCB for a child who is eligible for the DTC, you do not need to apply. It will be automatically paid monthly to the person who receives the CCB for that child.

[Visual]: A child with a prosthetic leg is playing with blocks.

Slide 22 – Multigenerational home renovation tax credit

[Phil]: The multigenerational home renovation tax credit is a refundable tax credit that you may be able to claim for certain renovation expenses spent to create a self-contained secondary unit.

The secondary unit must be for an adult 65 or older, or an adult who is eligible for the DTC, so they can live with a qualifying relative.

You can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed. The tax credit is 15% of your costs, up to a maximum of $7,500, for each claim you are eligible to make.

[Visual]: Six individuals are in a kitchen.

Slide 23 – Use the online benefits tools

[Phil]: Before we move to the next section, I want to share three online benefits tools with you.

The first, the Benefits Finder, can help you find out what benefits you may be eligible for. To use it, go to canada.ca/benefits-finder and answer a few questions. It will customize a list for you.

You can also use the CRA calculator to see how much you could get in child and family benefits. For this tool, go to canada.ca/child-family-benefits-calculator.

Lastly, you can get email reminders for benefit and credit payments. These are sent a week before the payment date. To subscribe, go to canada.ca/benefit-credit-payment-reminders.

Slide 24 – Do your taxes on time

[Phil]: The key to getting your benefits and credits is doing your taxes . . . on time!

We know it can be a bit scary.

But it’s important!

Benefits and credits are calculated based on the income you report when you do your taxes.

So, even if you didn’t earn income in the year, or your income was tax-exempt, we need this information.

Filing by the deadline allows us to calculate your payments and send them to you on time.

The deadline is generally April 30.

[Visual]: Red alarm clock.

Slide 25 – Ways to do your taxes

[Phil]: There are a few ways to do your taxes.

The fastest and easiest way is to do them online. If you are eligible, you can use certified software or a web application.

Some certified software is even free. The software guides you through the process, calculates everything, and helps make sure you don’t miss out on any benefits and credits.

If you have a modest income and a simple tax situation, a volunteer may be able to do your taxes for you at a free tax clinic.

You can also get help from a family member, a friend, or a tax preparer.

Finally, you can do them on paper by downloading a tax package for your province or territory, filling out the forms on computer or by hand, and mailing them to the CRA.

To find out more, visit canada.ca/taxes-get-ready.

Slide 26 – SimpleFile by Phone

[Phil]: You may be eligible to do your taxes over the phone using SimpleFile by Phone. The service used to be called File my return.

SimpleFile is for individuals with a simple tax situation.

If you are eligible to use this service, you will get an invitation letter from the CRA mid-February.

The letter will provide more information and a phone number for you to call to have your tax return filed.

You will have to confirm some personal information and answer a series of short questions using the keypad on your phone.

It’s as simple as that!

If you live in Quebec, you will need to do your provincial tax return separately.

For more information on the SimpleFile by Phone service, visit canada.ca/simplefile.

[Visual]: An individual is talking on their cellphone.

Slide 27 – Free tax help

[Phil]: As I mentioned, you may be able to get your taxes done by a volunteer for free!

The program is called the Community Volunteer Income Tax Program. In Quebec, it’s known as the Income Tax Assistance – Volunteer Program.

You’re eligible to have your taxes done through the program if you have a modest income and a simple tax situation.

Generally, a modest income is less than $35,000 for a single person and less than $45,000 for a couple.

Your tax situation is simple if, for example, you don’t have a small business or income from a rental property.

Tax clinics are held all year. However, most clinics are offered in March and April.

For more information or to find a clinic, go to canada.ca/get-tax-help.

[Visual]: Icon for the Community Volunteer Income Tax Program. Three icons of people all in different colors arranged inside a circle with their arms touching. Off to the right of the circle it is written: “People helping people.”

Slide 28 – Have you received a letter from the CRA? No need to worry!

[Phil]: The CRA will sometimes send you a questionnaire or letter if we need more information and to make sure you’re getting the right benefit and credit payments.

If you get one of these letters, don’t ignore it. You need to respond as soon as possible.

Often, the letter will ask for documents to confirm that the CRA has the most up-to-date information for you, like your marital status, proof that you are the primary caregiver of a child, or your address.

If you don’t have the documents, need some extra time to gather them, or don’t understand what we’re asking, just let the CRA know.

If you don’t respond, your benefit or credit payments will stop and you may have to repay payments you have already received.

[Visual]: An individual is looking at a tablet.

Slide 29 – Owe money to the CRA? We’re here to help!

[Phil]: You may receive a phone call or letter from the CRA that says you owe money.

Paying your debt in full by the due date helps you avoid interest and other legal and financial consequences.

However, we understand that people may find it hard to pay their debts related to taxes and benefits.

If you can’t pay, give us a call at 1-888-863-8657. We’re here to help and have flexible payment options available. Our online payment arrangement calculator can also help you find a payment arrangement plan.

After reviewing your financial details, the CRA will work with you to determine the amount and length of the payment arrangement.

If you do not call or make a payment arrangement, the CRA may take legal action to collect the balance.

Ignoring your debt does not make it go away.

If you’re ready to pay in full:

• You can use online banking, or the CRA’s My Payment and My Account services.
• You can pay at your financial institution or a Canada Post location; fees may apply.
• Or you can send a cheque or money order to the CRA. Please do not send cash by mail.

For more information, visit canada.ca/payments.

Slide 30 – In a situation of abuse?

[Phil]: The CRA understands the importance of getting benefit and credit payments, especially during times of stress and transition.

If you are facing an abusive or violent situation, including financial abuse, the CRA will help you continue to access these crucial financial supports.

You will never need to contact an abusive spouse or common-law partner to provide information to the CRA.

If you are in a situation of abuse or violence and cannot get the requested documents, you can send any of the following:

• a copy of a restraining order or an order of protection
• a copy of a police report, or
• a letter from a trusted third party explaining your situation. For example, the letter can be from a member of:
  • the clergy
  • a band council
  • a shelter
  • or a resettlement office

After you’ve submitted any of the mentioned documents, no additional action is needed on your part, and your review will end.

Slide 31 – Keep your personal information up to date

[Phil]: Along with doing your taxes every year, you must keep your personal information up to date to keep getting benefit and credit payments.

This includes:

• your address
• your marital, residency, and citizenship status
• the number of children in your care and
• your direct deposit information

You can update this information using the CRA’s My Account, by mail, or an agent can assist you by phone.

[Visual]: Headshot.

Slide 32 – No permanent address?

[Phil]: With the increased cost of living and lack of affordable housing, we know that many Canadians are finding it difficult to keep up with the bills and find a place to live.

If you don’t have a permanent home, and are staying in a shelter, you can use the shelter’s address to keep getting your payments and mail from the CRA.

If you move, let us know your new address right away. Otherwise, your payments may stop.

You can update your address online using My Account, by mail, or by phone.

[Visual]: Individual walking with a moving box.

Slide 33 – Frequently asked question 3

[Phil]: A question we get often is:

Will I stop receiving my benefit payments from the CRA if I experience homelessness or housing insecurity?

The benefits issued by the CRA are largely based on residency for tax purposes and the income reported on your prior year’s tax return. There is no requirement for you to have stable housing to receive benefits.

The key to getting your benefits and credits is doing your taxes on time. If you move, let us know your new address right away. Otherwise, your payments may stop.

Slide 34 – My Account for individuals

[Phil]: You can register for the CRA’s My Account once you have done your taxes for the first time and have received your notice of assessment.

My Account is a secure portal that lets you view your personal income tax and benefit information and manage your individual tax affairs online.

Along with doing your taxes every year, you must keep your personal information up to date to keep getting benefits and credit payments.

You can instantly update all this information on your own through My Account!

You can also:

• Track your refund
• View or change your return
• View your mail online, such as your notice of assessment
• Check your benefit and credit payments and statements
• Submit and track your DTC application, and more

For more information or to register for My Account, go to canada.ca/my-cra-account.

[Visual]: Screenshot of My Account.

Slide 35 – Digital services

[Phil]: In addition to My Account, there are many digital services available from the CRA. Here are a few.

Auto-fill my return is a secure CRA service that automatically fills in parts of your tax return with information the CRA has available at the time of your request, making it easier to do your taxes and helping to prevent mistakes.

Direct deposit is a fast, reliable, and secure way for individuals to get payments on time from the CRA in the event of unforeseen circumstances, such as a natural disaster or an emergency.

Email notifications help prevent fraud. Email notifications from the CRA let you know when changes are made to your personal information in My Account or there is CRA mail to view online.

For more information on the CRA’s digital services, go to canada.ca/cra-digital-services.

Slide 36 – Need help?

[Phil]: The CRA needs your permission to deal with another person who may act as your representative for income tax and benefit matters. This could be a family member, a friend, or an accountant.

Form AUT-01, Authorize a Representative for Offline Access, allows you to authorize a representative to only have access to your account information by phone, by mail, by fax, and in person.

You can also add a representative to your account under "Authorized representative(s)" from the "Profile" section in My Account.

This method provides online access. This is useful when your representative wants to submit documents electronically for you.

Make sure to choose someone you can trust! You don’t need to authorize someone as a representative if that person is only doing your taxes.

Slide 37 – Be scam smart!

[Phil]: To protect yourself from scams, it’s important to know when and how the CRA might contact you.

Here’s what you can do to be scam smart:

Take a minute and question why the CRA needs your personal information.

When in doubt, check My Account to see if you have mail or an amount owing. If you don’t, then make sure to delete the fraudulent communication you received.

You can also call the CRA to verify whether they are trying to reach you.

For more information, go to canada.ca/be-scam-smart.

You can also watch the Be Scam Smart webinar on our web page. I’ll provide more information on this shortly.

[Visual]: Black exclamation mark in a yellow triangle, and text saying “Some scams are easy to spot. Some are not.”

Slide 38 – Want to learn more about taxes?

[Phil]: We invite you to try out Learn about your taxes.

This self-directed online learning tool takes you through the purpose of taxes, completing a basic tax return, and more. It has exercises, quizzes, videos, and common tax terms.

And there are lesson plans for teachers and facilitators.

Go to canada.ca/learn-about-taxes to dive in.

[Visual]: Screenshot of the Learn about your taxes tool.

Slide 39 – Thank you!

[Phil]: And this is the end of our webinar.

For more information on any of the topics discussed today, visit canada.ca/taxes.

If you’re looking for more information on any of the CRA benefits and credits, visit canada.ca/every-dollar-counts.

We also encourage you to visit our Upcoming Events page at canada.ca/cra-outreach-events to view past recordings and register for upcoming webinars.

If you can’t find what you’re looking for online, you can call the CRA at 1-800-959-8281.

If you are deaf, hard of hearing, or have a speech impairment and are registered with Canada Video Relay Service, you can call the CRA at 1-800-561-6393.

Stay connected by following us on social media: we are on X, Facebook, YouTube, LinkedIn, and Instagram.

Thank you for joining us today! We hope it was helpful!

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