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Tax Credits - Low Income Climate Action Tax Credit
Frequently Asked Questions
Answers:
| What is the BC Low Income Climate Action Tax Credit (BCLICATC) program? |
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The BCLICATC is an ongoing payment that is issued to low and modest income individuals and families to help offset the carbon taxes they pay. It is part of the province's commitment that the carbon tax be revenue neutral. It is a non-taxable quarterly payment, which was first integrated with the Goods and Services Tax (GST) Credit payments in October 2008. |
| Am I eligible to receive a BCLICATC payment? |
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You are eligible if, on the first day of the month for the issuance quarter and the first of the month for the previous quarter, you were a resident of British Columbia and at least one of the following applies. You:
- are 19 years of age or older;
- have (or previously had) a spouse or common-law partner; or
- are (or previously were) a parent and live (or previously lived) with your child.
For example, to be eligible for a payment for October, you must have been a resident of BC on both October 1 and July 1 and meet one of the requirements listed above.
If you are married or have a common-law partner, only one of you can receive the credit on behalf of the family. No matter which one of you applies, the credit will be the same.
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How much you will receive depends upon the size of your family and your adjusted family net income. The maximum annual payment amount for 2009 is $105 per adult and $31.50 per child ($105 for the first child in a single parent family).
If you are a single individual with no children, the credit will be reduced by 2% of your adjusted net income over $30,600. If you are a family, the credit will be reduced by 2% of your adjusted family net income over $35,700.
One quarter of your annual entitlement will be issued every three months and integrated along with your GST Credit payment. For example, if you are a single individual with an income under $30,600 with no children, an additional $26.25 ($105/4 quarterly payments) will be included with your GST Credit payment.
For the estimated annual credit you are entitled to receive please contact the CRA at 1-800-959-1953.
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| When will I get my BCLICATC payment? |
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If you meet the eligibility requirements listed above (Q.2), your BCLICATC payment will automatically be integrated along with your GST Credit payment. The GST credit payments are issued by the CRA four times a year: January, April, July and October (generally on the fifth day of the month).
If you do not receive your GST credit payment on the expected date, please wait 10 working days before contacting the CRA at 1-800-959-1953.
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| Who will issue the BCLICATC payments? |
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The CRA will issue the BCLICATC payments on behalf of the Province of British Columbia. The payments will be integrated with the Goods and Services Tax (GST) Credit payments.
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| How do I apply for the BCLICATC? |
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To apply for the BCLICATC, you have to file an income tax and benefit return with the CRA. On page 1 of your return, check the "Yes" box in the GST/HST credit application area.
If you have a spouse or common-law partner, be sure to complete the information concerning your spouse or common-law partner in the Identification area on page 1 of your return. Include his or her net income, even if it is zero. Enter his or her social insurance number if it is not on your personal label or if you are not attaching a label.
If you are married or have a common-law partner, only one of you can claim the credit on behalf of the family. No matter which one of you applies, the credit will be the same.
To receive the credit for your children age 18 and under, they must be registered for the Canada Child Tax Benefit (CCTB). If your children are not registered for the CCTB, you can complete Form RC66, Canada Child Benefits Application. You can also request the CCTB form by calling the CRA at 1-800-959-2221.
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| Should I answer "Yes" to the GST/HST question on page 1 of my income tax and benefit return? |
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Since the annual credit amount can vary depending upon your family net income and the number of children you have, it is recommended that you contact the CRA directly at 1-800-959-1953 to determine if you are eligible.
If you have 5 or more children, you should answer "Yes" to the GST/HST credit question.
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| I have not yet filed my income tax return. Will I receive a BCLICATC payment? |
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No. To receive the BCLICATC, you must file an income tax and benefit return. When you file your income tax return, be sure to check the "Yes" box in the GST/HST credit application area on page 1 of your return.
If your return is not assessed by September of the following tax year, the CRA will automatically review your eligibility for the BCLICATC once your income tax return is received and assessed.
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| I filed my income tax return but I didn't answer the question in the GST/HST credit application area on page 1 of my return. Will I get my BCLICATC? |
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If you are single, separated, divorced, or widowed, the CRA will automatically check to see if you are entitled to the BCLICATC. If you are, they will send you a notice to the mailing address they have on file for you.
If you are married or living common-law and both of you left the GST/HST credit application area blank, the CRA will automatically check to see if the family is entitled to the BCLICATC. If you are, they will send a notice to the spouse or common-law partner whose return was first assessed.
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| I filed my income tax return but I checked the "No" box in the GST/HST credit application area on page 1 of my return. Based on my adjusted family net income I think I qualify for the BCLICATC. What should I do? |
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If you are single, separated, divorced or widowed, and you have confirmed with the CRA that you are eligible, then you will need to request an adjustment to your income tax return to change the answer to the GST/HST question.
If you are married or living common-law and you both answered "No" to the GST/HST question, and you have confirmed with the CRA that you are eligible, then one of you will have to request an adjustment to your income tax return to change the answer to the GST/HST question.
The following link to the CRA website provides information regarding how to change a previous year’s income tax return: CRA How to change your return.
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| How do I apply for the CCTB so that I can receive the BCLICATC for my children? |
| Why do I have to register my children with the CRA by applying for CCTB? |
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As mentioned above, the CRA will be issuing the BCLICATC payments on behalf of the province of British Columbia. To make sure families receive the credit for every child, the CRA will be using the system designed for administering the CCTB.
By submitting a CCTB application, the CRA may determine if you qualify to receive additional benefits from programs such as the CCTB, Goods and Services Tax Credit (GSTC), the BC Family Bonus (BCFB), the BC Earned Income Benefit (BCEIB), or the British Columbia Climate Action Dividend (BCCAD).
For general enquiries regarding the CCTB program, please call the CRA at 1-800-387-1193
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| My ex-spouse and I share custody of our son and daughter. Will I receive the BCLICATC payment for my children? |
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The CRA will be using the system designed for administering the CCTB to determine eligibility for children under the age of 18. The parent who is the primary caregiver in the CCTB system on the first of the month for each issuance quarter will receive their children’s BCLICATC payment for that quarter.
Any changes to a custody agreement should be reported to the CRA to determine the correct primary caregiver for each issuance quarter.
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| I am a resident of BC who is currently confined to a prison or similar institution but I will be getting out soon. Am I eligible for a BCLICATC payment? |
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To be eligible for a BCLICATC payment, you must be a resident of BC on the first day of the month for which the payment is issued as well as on the first day of the month for the previous quarterly payment. In addition, you must not have been incarcerated for a 90 day period that included the first day of the month for which the payment is issued. Payments are made in July, October, January and April. For example, to be eligible for a payment for October, you must not have been incarcerated for a 90 day period that included October 1 and you must have been a resident of BC on both October 1 and July 1.
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| I meet all of the conditions to get a BCLICATC payment but I still have not received a payment. What should I do? |
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If you are eligible to receive the BCLICATC and have not received a payment, please contract the CRA at 1-800-959-1953 and an agent will assist you. The service is available weekdays from 8:15 a.m. to 5:00 p.m. Pacific Standard time.
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| My address recently changed. What should I do? |
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You will need to provide the CRA with your new address as soon as possible by calling 1-800-959-8281. You can also change your address online by going to My Account. When you are updating your address with the CRA it is important to inform them the exact date that you moved.
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| Is the BCLICATC a taxable benefit? |
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No. The BCLICATC is a non-taxable payment.
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| Will there be interest paid or charged on any BCLICATC underpayments or overpayments? |
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No. Interest is not charged nor given on any BCLICATC overpayments or underpayments.
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| Who should I contact if I have a question about the British Columbia Provincial Government policy on the BCLICATC?
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For more information on the BCLICATC program, please visit the BCLICATC website or contact the Ministry of Finance:
Toll-free at: 1-877-387-3332
Or via e-mail to: ITBTaxQuestions@gov.bc.ca
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