Carbon Tax Credit: Claim it On Your 2018 Federal Return!

The Carbon Tax Credit can be claimed on your 2018 federal return — here’s how!

As most Canadians are aware, the federal government’s new Carbon Tax comes into force in 2019. For the provinces that chose not to implement their own carbon tax scheme (that’s Ontario, New Brunswick, Manitoba, and Saskatchewan), the federal carbon tax will start being imposed as of April 2019.

The federal government assured residents in those provinces that they’d receive tax credits to make up for the new carbon tax, such that the net difference to most families is slim to none.

The great news is, these carbon tax credits are available to claim on your 2018 federal tax return!

It's tax return time!  Learn how to claim your carbon tax credit for your 2018 federal tax return.
It’s tax return time! Learn how to claim your carbon tax credit for your 2018 federal tax return.

That means, if you lived in Ontario, New Brunswick, Manitoba or Saskatchewan on December 31, 2018 you need to be aware of how to take advantage of the new Climate Action Entitlement and maximize your chances of a tax refund!

In addition to being a resident of one of the provinces above, you also must be at least 18 years of age (younger individuals may still qualify if they have a spouse and/or child living at the same address).

The carbon tax credit might not be obvious, so if you prepare your own taxes (it’s not hard, really!) you should take note of how to claim it.

You’ll be able to find the Climate Action Entitlement on line 449 of the 2018 federal tax return.

Information on the new carbon tax credit is provided in the What’s New section of the 2018 T1 Tax Return as within Schedule 14. The federal government has also claimed promotional/educational efforts are being undertaken with residents of those provinces this tax season.

You can read more about the Climate Action Entitlement on the CRA’s website here.

Also important to note — residents of these provinces who also live in a rural/remote community are eligible for an increased carbon tax credit amount!

To be eligible, your address must be outside of CRA-prescribed metropolitan regions. If your address qualifies, you can increase your carbon tax credit entitlement by 10 percent.

The CRA offers more information on eligibility, as well as a way to validate if your address qualifies, here.

The amount you can expect to receive for the carbon tax credit varies by province as well as your family situation, as follows:

Family Situation, 2018SaskatchewanManitobaNew BrunswickOntario
Single adult (or, adult claiming the credit in household) $305 $170$154$128
Second adult in couple / single parent supplement $152 $85$77$64
Per child supplement (for single parents, 2nd child +) $76 $42$38$32
Total for a Family of Four $609 $339$307$256

If you’re a resident of another province of Canada, you won’t be eligible for the federal Climate Action Entitlement.

That’s because the other provinces implemented their own, provincial carbon tax scheme. You’ll need to consult your provincial tax credits to see if your province provides a similar carbon tax credit.

If you file your taxes with a tax professional or accountant, make sure to ask them about any eligible carbon tax credit to maximize your 2018 tax return!

Let us know in the comments if you remembered to claim your carbon tax credit entitlements (federal, provincial, or otherwise!).

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