Bigger B.C. tax credits may land in your bank account this month – BC News
Photo Credit: Steven Chua/The Squamish Chief.
The provincial government says the $2 billion in loans are intended to ease household inflation.
Larger tax credits are on the way this month for low- and middle-income individuals and families in BC
The provincial government, sitting on $5.7 billion in excess tax revenue, will return some of that in the form of what it calls an expanded “BC Affordability Credit,” which will be added to the Climate Action Tax Credit this month, according to a Jan. 5 government statement.
A family with an adjusted net income in 2021 of less than $43,051 (or singles reporting less than $36,901) will receive an additional $164 per adult (starting at $48.38) and $41 -dollars per child (starting at $14.13). The additional credit is gradually reduced to zero once the income threshold reaches $150,051 for a family of two or $79,376 for a single person (family thresholds move up and down with more or fewer children and are lowered for single parents).
85% of British Columbia residents will automatically receive a full or partial credit to their bank account on January 13th.
Canada’s Internal Revenue Service recommends waiting 10 working days to contact them if payment is not received, and the BC Government is warning of possible fraudulent text messages related to these and other tax credits.
A second enhanced loan — the BC Family Benefit (formerly known as the Child Opportunity Benefit) — will be paid in on January 20. This is the first of three consecutive extended monthly credits.
BC Family Allowance is for families only, and the expanded payments are only targeted at lower incomes.
January, February, and March payments include up to an additional $58.33 per child per month. A family with two children gets up to $350 from this top-up.
So when you add the usual credit, a family earning less than $25,806 gets about $191 per first child and $141 per second child. These amounts are further reduced by 0.33% of the income portion above $25,806 up to $82,578.
A family earning $82,578 receives the usual base amount with no increased payment — about $108 per first child and $106 per second child. These amounts are further reduced by 0.33% of the income portion above $82,578 until it is reduced to zero.
The median household income in BC is $82,000, which roughly equates to two parents earning an average of $20.50 an hour.
The provincial government says the $2 billion in loans are intended to ease household inflation.
“The winter season often brings additional spending for people and can put additional strain on already stretched household budgets given the rising costs we are seeing around the world,” said Treasury Secretary Katrine Conroy.
“We know it won’t cover all the bills, but hopefully this little extra from the BC Affordability Credit will help take the pressure off a bit as we head into a new year.”
Full details can be found on the government website.
