What are some government programs available for low-income individuals and families in Canada?
Mark Virgil Lofranco • 28 April 2023
There are several government programs available for low-income individuals and families in Canada. These include:
- Canada Workers Benefit (CWB)
- The CWB is a refundable tax credit designed to help low-income working individuals and families with their financial needs. Eligible taxpayers can receive up to $1,395 (for single individuals) for the 2022 tax year. You can apply for the CWB when you complete and file your tax return.
- Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit
- This credit helps lower-income Canadians offset all or part of the federal GST/HST they pay when purchasing products and services. The credit ranges from $467 to $612, depending on your net income and family situation. Once you reach a certain income, you’ll no longer receive this credit. You can apply for the GST/HST credit by filing your tax return.
- Canada Child Benefit (CCB)
- The CCB is a tax-free monthly payment made to eligible families with children under the age of 18. Eligible families may receive up to $6,997 per child for the 2022–2023 benefit year. The amount you’re eligible to receive depends on your family’s income and size. To continue with the monthly payments, you must file your tax return on time each year. You need to be a Canadian resident to qualify and must complete Form RC66, Canada Child Benefits Application, to apply.
- Canada Housing Benefit
- Under Canada’s new Affordability Plan, the Canada Housing Benefit is a one-time payment of up to $500 based on your income and the amount of rent you pay. To be eligible, your monthly rent amount has to equal at least 30% of your 2021 income. So if you earned $20,000 in 2021, your rent needs to be at least $500/month to qualify. To claim this payment, you must file your 2021 income tax return and provide information regarding your housing situation once the application period opens. The last day to apply is March 31, 2023.
- Canada Dental Benefit
- The temporary Canada Dental Benefit is here to help lower dental costs for eligible families. These families earn less than $90,000 annually and have children under 12 who received dental work in the specified periods. The first benefit period is for children 12 years old (as of December 1, 2020) who receive dental care between October 1, 2022, and June 30, 2023.
- Refundable provincial credits
- In addition to the available federal tax credits and benefits, many provinces and territories have separate benefits and credits.
- Ontario Trillium Benefit: Provides a tax credit of $172 to $265, depending on your income and family status.
- Quebec credits: Include the Quebec Family Allowance, refundable cost of living tax credit, and solidarity tax credit, which all vary based on income and family status.
- Basic Personal Amount (BPA)
- Both federal and provincial governments offer a BPA for taxpayers to claim on their tax returns. This non-refundable tax credit allows you to reduce the taxes you owe federally and provincially. The amount of this tax credit varies by province.
- Tuition tax credits
- If you’re a student, you can apply for tuition tax credits and the Canada Training Credit when you file your tax return. The tuition tax credit allows you to claim up to $5,000 in tuition fees per year. You should have received a T2202 form from the school you’re attending, which contains everything you need to include to claim tuition credits on your tax return.
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