By now, most Canadian motorists and homeowners are feeling the sting of the carbon tax. If there is a bright side, it comes in the form of a tax rebate that everyone can apply for on their 2018 tax returns.
All tax preparation software should already include it, but if you want to check, or you do your taxes the old-fashioned way, it is calculated on Schedule 14 and the amount is entered on line 449 of your return.
Before you start clicking away, it’s important to dispel any political myths. While the carbon tax rebate varies depending on the province, it is a tax credit and not a deduction. That means it’s calculated the same for everyone regardless of income or how much carbon they burn.
The federal government estimates the average family of four will receive $307 each year. The extra cost of the carbon tax is estimated to be over $700 for each Canadian household annually. If you don’t drive much, or you drive an electric car or heat your home with an energy efficient furnace, you could be ahead. That’s the whole point of the carbon tax – to encourage Canadians to spend their rebates on more efficient forms of energy.
As an example, a single Ontario adult resident, or first adult in a couple, can claim the basic amount of $154. A second adult in a couple can claim $77. A single parent is also eligible for that amount for their first child. If you have kids, you can add $38 for each child. If you live in a rural area, you can increase your total rebate by 10 per cent.
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