For the last several years, many taxpayers have been enjoying a larger refund during tax season due to the Climate Action Incentive. This is a benefit paid in Alberta, Saskatchewan, Ontario, and Manitoba to offset the cost of the federal pollution pricing.
However, in 2021 the incentive will not be refunded as part of your personal tax return. Instead, the government will be refunding it in quarterly payments. The first payment will come in July of 2022 and will be a double payment for the first two quarters of year.
In order to receive this benefit, you must file your personal tax return for 2021!
The legislation doesn't specifically indicate the amounts that will be paid in 2022, however, it will likely be similar or slightly more than last year, as shown on the table below.
| Alberta | Ontario | Manitoba | Sask. |
Single adult or first adult in couple | $490 | $300 | $360 | $500 |
Second adult in a couple, or first child of single parent | 245 | 150 | 180 | 250 |
Each child under 18 | 123 | 75 | $90 | 125 |
Will you receive more if I live in a rural community? Yes. You will receive an additional 10% supplement on top of the amount calculated above if you live in a rural community. In Alberta, rural community is typically anything outside of Lethbridge, Calgary, or Edmonton and their surrounding communities. Surprisingly Red Deer and Grande Prairie are considered rural areas. For a complete listing of rural areas, please refer to the link below.
If you have any questions regarding the climate action incentive or your personal tax return, please contact us.