Types of refundable tax credits and other items
On this page
- Canada workers benefit advance payments
- CPP contributions payable on self-employment income and other earnings (Tips/Gratuities)
- Refundable medical expense supplement
- Canada workers benefit (CWB)
- Canada training credit (CTC)
- Climate action incentive payment
- Marital status (involuntary separation)
- Newcomers
- Indigenous Peoples
- Date of incarceration
Canada workers benefit (CWB) advanced payments Line 41500
- The Canada workers benefit (CWB) advance payments are not taxable but must be entered in the tax return of the individual who received them. The amount received in the calendar year will appear in box 10 of the RC210.
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CPP contributions payable on self-employment income and other earnings (Tips and Gratuities) Line 42100
- Individuals can make additional CPP contributions on certain incomes through their income tax return, on line 42100.
- Individuals can elect to make CPP contributions using form CPT20 - Election To Pay Canada Pension Plan Contributions.
- The individual has to file their election on or before June 15, 2023, and pay their required contributions on or before April 30, 2023.
Ufile tip
- Individuals who choose to make additional CPP contributions on tips or gratuities must enter the information in the software. The software then automatically completes form CPT20 - Election To Pay Canada Pension Plan Contributions and calculates the amount.
- If the individual has income from box 048 on a T4A, the software automatically calculates this amount, no election is necessary.
- The software automatically generates Schedule 8 and enters the amounts on line 22200 and line 31000.
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Refundable medical expense supplement Line 45200
- An individual with a modest working income who has claimed eligible medical expenses or an amount for the disability supports deduction (line 21500) may be eligible to claim this refundable tax credit.
- To be eligible, the individual must:
- have medical expenses claimed on line 33200 or have claimed an amount for the disability supports deduction on line 21500
- be a resident in Canada throughout the tax year
- be 18 or older at the end of the tax year
- meet the income requirements for the year
Ufile tip
The software automatically claims this credit if all of the conditions listed above apply.
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Canada workers benefit (CWB) Line 45300
- Working individuals and families who earn a lower income may be eligible for the Canada workers benefit (CWB), which is a refundable tax credit. The CWB has two parts, the first is the basic amount and the second is the disability supplement.
- An individual may be eligible for the basic amount if they:
- have working income
- are a resident of Canada for income tax purposes throughout the year
- are 19 years of age or older on December 31; or they live with their child or, their spouse or common-law partner
- An individual may be eligible for the disability supplement if they have an approved form T2201, Disability Tax Credit Certificate, on file with the CRA.
Ufile tip
- The software automatically calculates the CWB and generates schedule 6.
- You must enter all the applicable information for:
- the individual’s spouse or common-law partner
- all children under the age of 19 which currently reside with the individual and are not eligible for CWB themselves
- This tax credit is claimed on only one tax return unless both the individual and their spouse or common-law partner are eligible for the disability supplement
Related topics
- Canada workers benefit – Overview on Canada.ca
Canada training credit (CTC) Line 45350
- The Canada training credit (CTC) is a refundable tax credit intended to help Canadians with the cost of training fees.
- An eligible individual can accumulate $250 each year toward their Canada training credit limit (CTCL), up to a maximum of $5,000 in a lifetime. The CTCL can be found on their notice of assessment from the prior year or through using AutoFill my Return.
- An individual can claim the CTC for eligible tuition and other fees paid for courses taken in the year if they meet all of the following conditions:
- the individual was a resident in Canada throughout the year
- the individual was between 26 and 66 years of age on December 31 of the tax year
- the individual's latest notice of assessment or reassessment shows a Canada training credit limit (CTCL)
- the individual paid their tuition or fees to an eligible educational institution in Canada or to certain institutions for an occupational, trade or professional examination
- the tuition and fees are eligible for the tuition tax credit
- The student will need to confirm the amount they wish to claim if they want to claim an amount lower than their CTCL limit.
Information for previous years
- 2020 is the first year individuals became eligible to claim the Canada training credit
- 2019 is the first year individuals began to accumulate the Canada training credit limit (CTCL)
Note
When the individual claims the Canada training credit for a tax year; this, in effect reduces the tuition tax credit that the student may claim, transfer to a supporting individual, or carry forward to a later year.
UFile tip
- The software automatically calculates the allowable amount in Schedule 11 and the maximum amount they may claim is the lesser of the following:
- half of their fees claimed on line 32000 of Schedule 11
- their CTCL limit on their latest notice of assessment or reassessment
Related topics
- UFile instructions
- Guide P105, Students and Income Tax on Canada.ca
Climate action incentive payment (CAIP) Line 45110 (schedule 14)
- For residents of Newfoundland and Labrador, Prince Edward Island, Nova Scotia, Saskatchewan, Manitoba, Ontario, and Alberta.
- Prior to 2021, the climate action incentive was a refundable tax credit claimed annually on the tax return, on line 45110 Climate action incentive. It required a completed Schedule 14 to be submitted with the tax return and was only for individuals residing within Saskatchewan, Manitoba, Ontario and Alberta.
- As of 2021, this credit is now known as the climate action incentive payment (CAIP). The CAIP is paid as a quarterly benefit. If eligible, the individual automatically receives this payment four times a year, starting in July 2022.The individual does not need to apply for the CAIP as the CRA determines eligibility upon submission of their tax return.
- As of the 2021 tax year, the credit is paid to the spouse or common-law partner whose tax return is assessed first. Although individuals may choose not to claim the credit to make sure the spouse or common-law partner receives it, we strongly recommend allowing the software to claim the credit for everyone. This would ensure that if an individual’s marital status changes, they should receive any CAIP they are entitled to.
- Since 2022, individuals residing in Newfoundland and Labrador, Prince Edward Island and Nova Scotia will start to receive their payments in July 2023 if they are eligible.
- For the purpose of the CAIP supplement for residents of small and rural communities, individuals must have lived outside of a census metropolitan area (CMA) on December 31 of the tax year. The software automatically ticks Box 60104 on Schedule 14 and submits it with the tax return.
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Marital status (involuntary separation)
- An involuntary separation could happen when one spouse or common-law partner is living away for work, school, or health reasons, or is incarcerated.
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Newcomers
- Newcomers are individuals who left another country to come and live in Canada.
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Indigenous Peoples
- There are additional tax considerations to consider for Indigenous Peoples.
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Date of incarceration
- When preparing a return for an incarcerated individual, it is important to be aware that their eligibility for certain benefits and credits may be affected by the period of incarceration.
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