FAQ: New Refundable Cost of Living Tax Credit
This page contains answers to common questions about the new refundable cost of living tax credit. We hope they give you the information you need.
You do not have to claim the tax credit in your income tax return. If you are eligible and you file your return for 2021 by June 30, 2023, you will get the credit automatically after we issue your notice of assessment for 2021.
You will get the full amount you are entitled to. We cannot apply this tax credit to your balance due.
You will get the full amount you are entitled to. We cannot apply this tax credit to an outstanding balance.
No. Tax credits are not taxable.
No. The tax credit will be paid out to all eligible taxpayers with a net income of less than $104,000.
The tax credit will be paid out to all eligible taxpayers with a net income of less than $104,000. If you and your spouse are both eligible, you will each get a credit based on your respective net incomes.
To be eligible, you must file your income tax return for 2021 by June 30, 2023.
Yes. You may be eligible even if you declared bankruptcy in 2021. The credit will be considered granted for the period after the bankruptcy.
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