B.C.’s Low Income Climate Action Tax Credit

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The B.C. Low Income Climate Action Tax Credit helps offset the impact of the carbon taxes paid by low income individuals or families.

The Low Income Climate Action Tax Credit is combined with the federal Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit into one quarterly payment. The payments are issued by the Canada Revenue Agency (CRA) four times a year in July, October, January and April, and generally fall on the fifth day of the month.

The Low Income Climate Action Tax Credit is a non-taxable payment. This means that you don’t need to include it as income when you file your income tax return.

You’re eligible to claim the credit if you’re a resident of B.C. and you:

  • are 19 years of age or older, or
  • have a spouse or common-law partner, or
  • are a parent who resides with your child.

Only one person can apply for the credit on behalf of the family.

Credit Amounts

How much you will receive depends upon the size of your family and your adjusted family net income. The maximum annual payment amount for the period beginning July 2017 is $115.50 for yourself, $115.50 for your spouse or common-law partner, and $34.50 per child ($115.50 for the first child in a single parent family).

Budget 2017 Update proposes to increase the maximum annual payment amount from $115.50 to $135 for you and your spouse or common-law partner, and from $34.50 to $40 per child ($135 for the first child in a single parent family) for the April 2018 and subsequent quarterly payments.

The credit is reduced by 2{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of family net income over the income threshold – $33,326 for a single individual with no children and $38,880 for married or a single parent.

Claiming the Credit

You don’t need to apply for the B.C. Low Income Climate Action Tax Credit. When you file your tax return, the CRA will determine your eligibility and advise you if you are eligible to receive the credit.

If you have a spouse or common-law partner, only one of you can receive the credit. The credit will be paid to the person whose return is assessed first. The amount of the credit will be the same regardless of which one of you receives it.

If you would like more information on the Low Income Climate Action Tax Credit, or if you would like more information on various programs, deductions and credits that can help you and your family, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.

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2017-12-06T15:37:45+00:00