Hounjet Tastad Harpham has decades of accounting experience working with clients across Saskatchewan. Their expert accounting advice is valued by clients ranging from individuals to businesses small and large. Hounjet Tastad Harpham are Trusted Saskatoon Accountants and in their latest accounting tip, they answer a client question about how the new Climate Action Incentive ( CAI) (commonly referred to as the carbon tax rebate) program works.
Recently a client emailed us to ask a few questions before they dropped off their 2019 personal tax information. This particular client has been in a common law relationship for 7 years and has 3 children from a previous relationship.
The CAI Question:
Greetings Roseline, I'm going to drop off my information tomorrow, but I just wanted to ask about the new Federal ECO/Carbon Tax rebate program/ incentive - how is it decided , how is it calculated and who receives it?
The Answer
Individuals in Saskatchewan will receive a tax-free Climate Action Incentive payment after filing their 2018 tax return starting in 2019.
Climate Action Incentive payments in Saskatchewan will be calculated as follows for 2019:
The carbon tax rebate can be claimed by either spouse, so it’s up to you to decide which one. You can’t split it – it has to go to one or the other. In this case, we suggested that the client put it on her return because it includes the children. The rebate gives $305 for the individual, $152 for the spouse, and $76 per child, for a total of $685.00.
Depending on financial arrangements, the client who receives the rebate may then split half of the adult CAI (305 +152= ) and give their partner/spouse $228.50, keeping the 3 children's rebate for their expenses.
What About Other Family Circumstances?
The amount for a single parent's qualified dependant:
To claim the CAI payment for a single parent’s qualified dependant, on December 31, 2018, you must:
- not be married or in a common-law partnership, and
- have a child (or dependant) who meets all the conditions of a qualified dependant.
Shared custody
Only one claim for a CAI payment can be made per child. The payment cannot be split between parents.
Supplement for residents of small and rural communities
To claim the supplement for residents of small and rural communities, you must have resided outside of a census metropolitan area (CMA) on December 31, 2018.
Find out if you qualify for the 10% supplement for residents of small and rural communities.
| Province | Basic Amount | Spouse or common-law
partner amount | Qualified dependant
amount | Single parent's
qualified dependant
amount |
| Saskatchewan | $305 | $152 | $76 | $152 |
Claim the CAI payment
To claim the CAI payment, you must:
- complete your 2018 income tax and benefit return
- complete Schedule 14 included with your return
- send (file) your return to the Canada Revenue Agency
The CAI payment will be automatically applied to your balance owing for the year, if applicable, or may increase the amount of any refund you may be entitled to.
Contact Hounjet Tastad Harpham today if you have any further questions related to CAI.
Hounjet Tastad Harpham Services:
If you are looking for a Saskatoon chartered professional accountant for your personal taxes or business accounting needs, contact the team at Hounjet Tastad Harpham today.