what is canada cai payment

what is canada cai payment

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The Climate Action Incentive (CAI) payment is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland & Labrador, Nova Scotia, and Prince Edward Island. The CAI consists of a basic amount and a supplement for residents of small and rural communities. The payment method for the CAI has changed from a refundable credit claimed annually on personal income tax returns to quarterly tax-free payments made through the benefit system starting in July 2022. The amount you receive depends on your family situation and the province you reside in. The payment for the CAIP will be universal and therefore not subject to a benefit reduction based on adjusted family net income. The CAI payment amounts have been adjusted in Alberta, Manitoba, Ontario, and Saskatchewan to account for over- and under-distributions of proceeds in previous years. The CAI includes a rural supplement of 10% of the base amount for residents of small and rural communities. The CAI payment is delivered at the beginning of each quarter. The Newfoundland and Labrador program provides a quarterly credit of $164 for an individual starting in July 2023. The amount of CAI payment you receive depends on your family situation and the province you reside in. To access the calculation sheets, you can click on the province of residence.

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