Happy sunny long weekend, everyone! I’m here with a few quick tax updates to spoil the mood!
July is when the new year starts for anyone receiving benefits like the Canada Child Benefit or GST rebate, so I’d like to share a bit of information about benefits.
For everyone receiving GST cheques, you can expect your first payment of the new year to be deposited or mailed on July 5th. This payment will be higher than usual, due to the Grocery Rebate, a one-time payment meant to help with rising food costs that will be paid out along with the GST.
Also in July, on the 20th, is the first Canada Child Benefit payment of the new year. CRA sends out a notice in June letting you know how much your new payments are going to be, based on your 2022 tax return. So if your income went up or down last year, your CCB payments will reflect that.
The Canada Workers Benefit is a refundable credit for lower income workers that gets paid out as part of your tax refund. This year, CRA has started automatic advance payments of the CWB. That means that if you qualified for the credit on your 2022 taxes, CRA will estimate how much they expect you to receive on your 2023 tax return and will pay out a portion of that money in advance. Those payments start on July 28th. If your income is going to be higher in 2023 than in 2022, be aware that you may need to pay back some or all of the advance payments when you file your taxes next year.
If you filed your taxes after the May 1st deadline or if there was a delay in processing your return, your benefit payments may be late. In the case of the CCB, your spouse or partner must also file their taxes before CRA will make any payments.
For anyone who filed taxes from 2021 or earlier, any GST back-pay for those years will come separately from the regular GST payments.
Be aware that if you qualify for the Canada Dental Benefit, a new benefit period starts July 1st. If your family income is less than $90,000, you have no dental insurance, and your children are under 12, you may qualify. You can apply for the benefit if you have dental appointments for your kids booked any time from July 1st, 2023 to June 30th, 2024.
Many of you had uncashed cheques from CRA. So far, none of those have been reissued yet. The timeline CRA gives for those payments is 6-8 weeks after submitting the form, but it looks like they’re behind. So if you haven’t received your deposit or cheque yet, don’t worry. It’s in the queue.
As always, feel free to get in touch with any questions. If your benefit payments are not what you were expecting, we can access your CRA account and try to decode the notices for you.
Enjoy the sunshine!
Jen
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