How Newcomers to Canada Can Apply For Benefits And Tax Credits

A range of benefits and tax credits are available to newcomers to Canada, including both permanent (including people with “approval-in-principle” from IRCC to stay in Canada) and temporary residents (including student, worker, or temporary resident permit holders).

Newcomer status under the Canada Revenue Agency (CRA) lasts for one’s first year of residence in Canada.

The benefits and credits owed to newcomers by the CRA help financially support them. A newcomer or their spouse or common-law partner must be a resident of Canada for income tax purposes.

To start receiving payments, they must:

1. Get a Social Insurance Number (SIN) from Service Canada

A SIN is a 9-digit number that is personal, confidential, and unique to each person.

A SIN is needed to:

receive benefits and credits
work in Canada
open most types of bank accounts

A SIN can be applied for online or in person at a Service Canada Centre or by mail. An application for a SIN must be submitted to:

request a SIN for the first time
obtain a confirmation of one’s SIN
correct an error on a SIN record
update a legal change of name
update the citizenship status on one’s SIN record
update one’s immigration document’s expiry date on their SIN record
remove one’s disc number from their SIN record

If Service Canada is unable to provide a permanent or temporary SIN to someone, the CRA may give them a temporary tax number (TTN) that they may use to get benefits and credits, file taxes, and sign up for CRA’s online services.

2. Apply for the benefit and credit they are eligible for

A newcomer does not need to do their first tax return before they can get these benefits and credits the first year they arrive in Canada:

GST/HST credit and Canada Carbon Rebate

The goods and services tax/harmonized sales tax (GST/HST) credit helps offset the tax paid by newcomers on things they buy. If they are at least 19 years old, they have a low or modest income, and are eligible, they can apply for a tax-free quarterly payment.

Canada Child Benefit (CCB)

For those who have at least one child under 18 years old and are eligible, there is an option to apply for a tax-free monthly payment to help with the cost of raising their family.

Temporary residents must have lived in Canada for at least 18 months in a row and must have a valid permit on their 19^th month of living in Canada before they can apply for the Canada child benefit and any related provincial and territorial programs.

The follow forms need to completed by those eligible for the GST/HST or CCB credit:

For those without children: Fill out and sign Form RC151, GST/HST Credit Application for Individuals Who Become Residents of Canada.

For those with children: Fill out and sign Form RC66, Canada Child Benefits Application and include Form RC66SCH, Status in Canada and Income Information

Those applying for the GST/HST credit and the CCB do not need to apply for both separately, but only need to use form RC66/RC66SCH to apply for both.

Provincial and Territorial Benefits and Credits

Many provinces and territories offer benefits that individuals may be eligible for:

1. Alberta

Alberta child and family benefit

The Alberta child and family benefit (ACFB) is a tax-free amount paid to families that have children younger than 18 years old.

2. British Columbia

BC family benefit

The BC family benefit (BCFB), previously called the BC child opportunity benefit, is a tax-free monthly payment to families with children under the age of 18. The amount is combined with the CCB into a single monthly payment.

BC climate action tax credit 

The BC climate action tax credit (BCCATC) is a tax-free payment made to low-income individuals and families to help offset the carbon taxes they pay.

3. Manitoba

The Canada Revenue Agency does not administer any benefit program on behalf of Manitoba.

4. New Brunswick

New Brunswick child tax benefit (NBCTB)

The NBCTB is a tax-free amount paid monthly to qualifying families with children younger than 18 years of age.

The New Brunswick working income supplement (NBWIS) is an additional benefit paid to qualifying families with earned income who have children under 18 years of age. Benefits are combined with the CCB into a single monthly payment.

New Brunswick harmonized sales tax credit (NBHSTC)

This credit is a tax-free amount paid to help offset the increase in the sales tax for households with low and modest incomes.

5. Newfoundland and Labrador

Newfoundland and Labrador child benefit (and Early childhood nutrition supplement)

This benefit is a tax-free amount paid monthly to help low-income families with the cost of raising children under 18 years of age. The Early childhood nutrition supplement (ECNS), previously called the pre-natal infant nutrition supplement (PINS), is an additional benefit paid to qualifying families.

Benefits are combined with the CCB into a single monthly payment.

Newfoundland and Labrador income supplement

The Newfoundland and Labrador income supplement is a tax-free payment made to low-income individuals and families and persons with disabilities who may be impacted by additional provincial tax measures. The amount is calculated based on your family situation and the individual’s adjusted family net income.

Newfoundland and Labrador disability amount

The Newfoundland Labrador disability amount (NLDA) is an additional amount paid with the Newfoundland and Labrador income supplement (NLIS) and is designed to help low and modest income persons with disabilities.

Newfoundland and Labrador seniors’ benefit

This program provides a tax-free annual amount of $1,516 if a person is either:

a single senior (65 years of age or older at any time during 2023)
a married or common-law couple that includes at least one senior whose adjusted family net income is $29,402 or less

6. Northwest Territories

Northwest Territories child benefit

The Northwest Territories child benefit is a non-taxable amount paid monthly to qualifying low- and middle-income families with children under 18 years of age.

Northwest Territories cost of living offset

The Northwest Territories cost of living offset (NTCOLO) is a tax-free amount paid to individuals and families to help offset the cost of the Northwest Territories carbon tax. The amount is combined with the quarterly payments of the federal GST/HST credit.

7. Nova Scotia

Nova Scotia child benefit (NSCB)

This benefit is a tax-free amount paid monthly to help low- and modest-income families with the cost of raising children.  These amounts are combined with the CCB into a single monthly payment.

Nova Scotia affordable living tax credit (NSALTC)

This credit is a tax-free amount paid to make life more affordable for low and modest incomes to individuals and families. The credit offsets the increase in the HST and provides additional income for these individuals and families.

8. Nunavut

Nunavut child benefit (NUCB)

This benefit is a non-taxable amount paid monthly to qualifying families with children under 18 years of age.

Nunavut carbon credit (NCC)

The Nunavut carbon credit is a non-taxable amount paid to individuals and families to help offset the cost of the carbon tax. This amount is combined with the quarterly payment of the federal GST/HST credit. However, the first NCC payment will be a retroactive amount to July 1, 2023, issued on September 5, 2023.

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9. Ontario

Ontario trillium benefit (OTB)

The Ontario trillium benefit (OTB) is the combined payment of the Ontario energy and property tax credit, the Northern Ontario energy credit, and the Ontario sales tax credit. The annual OTB entitlement is usually divided by 12 and the payments issued monthly.

Ontario energy and property tax credit (OEPTC)

The Ontario energy and property tax credit (OEPTC) is designed to help low- to moderate-income Ontario residents with the sales tax on energy and with property taxes.

Northern Ontario energy credit (NOEC)

The Northern Ontario energy credit (NOEC) is designed to help low- to moderate-income Northern Ontario residents with the higher energy costs they face living in the north.

Ontario sales tax credit (OSTC)

The Ontario sales tax credit (OSTC) is a tax-free payment designed to provide relief to low- to moderate-income Ontario residents for the sales tax they pay.

Ontario child benefit (OCB)

The Ontario child benefit (OCB) is a tax-free amount paid to help low- to moderate-income families provide for their children.

Ontario senior homeowners’ property tax grant (OSHPTG)

The Ontario senior homeowners’ property tax grant (OSHPTG) is intended to help offset property taxes for seniors who own their own home and who have low to moderate incomes. This program is funded entirely by the Province of Ontario. The CRA administers this program for Ontario.

10. Prince Edward Island

Prince Edward Island sales tax credit

This credit is a tax-free amount paid to help offset the increase in the sales tax for households with low and modest incomes.

11. Quebec

Family Allowance

Family Allowance provides financial assistance to all eligible families with dependent children under age 18.

12. Saskatchewan

Saskatchewan lowincome tax credit (SLITC)

This credit is a tax-free amount paid to help Saskatchewan residents with low and modest incomes, providing $380 for an individual, $380 for a spouse or common-law partner (or for an eligible dependant), and $150 per child (maximum of two children), or an annual credit of up to $1,060 per family from July to June.

13. Yukon

Yukon child benefit (YCB)

This benefit is a non-taxable amount paid monthly to help low and modestincome families with the cost of raising children under 18 years of age. These amounts are combined with the CCB into a single monthly payment.

Yukon Government carbon price rebate – Individuals (YGCPRI)

This rebate is a non-taxable amount paid to individuals and families to help offset the cost of the federal carbon pollution pricing levy. The amount is combined with the quarterly federal GST/HST credit payments.

A separate application is not needed for the related programs that the CRA administers on behalf of the provinces and territories. Newcomers are automatically considered for the provincial and territorial benefits and credits when they apply for the CCB or file a tax return.

3. Other Benefits and Credits

Once the first tax return has been filed, individuals may be eligible for further tax credits and benefits:

Canada dental benefit
One-time top-up to the Canada Housing Benefit (closed as of April 12, 2024)
Disability Tax Credit (DTC)
Canada Carbon Rebate (CCR) (formerly the Climate action incentive payment)
Canada workers benefit
Child disability benefit
Canada caregiver credit
Canada training credit
Home accessibility tax credit
Children’s special allowances
COVID-19 benefits from the CRA

4. Getting One’s Money

Individuals can sign up for direct deposit to get their money directly into their account at a financial institution in Canada.

To keep getting their benefits and credits after sending their application for benefits and credits one time, every year they must:

file their income tax and benefit return on time, even if they have no income in the year
have their spouse or common-law partner, if they have one, file a return even if they have no income
keep their personal information updated with the CRA

keep documents that show proof of their situation, in case CRA needs

This article was originally published by Immigration.ca. Read the original article here.