Important Updates from the CRA for October 2024

The Canada Revenue Agency (CRA) has announced several important updates and events for October 2024. These updates cover various areas such as tax benefits, filing deadlines, and new policies that Canadians need to be aware of. In this article, we will discuss each event in detail to help you understand how these changes might affect you.

1. GST/HST Credit Payment Update

Starting from October 2024, the CRA will make changes to the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credit payment schedule. The CRA has confirmed that the quarterly GST/HST credit payments will now be disbursed in October, as part of the next installment of 2024 payments. This credit aims to help individuals and families with low or modest incomes cover some of the taxes they pay on goods and services.

What Does This Mean for Canadians?

• The next GST/HST credit payment will arrive in your account in early October.
• This credit helps cover everyday expenses, such as groceries and utility bills.
• Eligible individuals should ensure their personal information with the CRA is up to date to avoid delays in receiving their payments.

2. Increase in Canada Workers Benefit (CWB) Payments

In October 2024, the Canada Workers Benefit (CWB) will see an increase in payment amounts. The CRA announced this to provide more support to low-income workers across the country. The CWB is a refundable tax credit that boosts the income of individuals and families who work but earn a low wage.

Key Details About the Increase

• The maximum payment for the CWB will increase by a small percentage, providing eligible individuals with more financial support.
• This change will help Canadians afford essential needs like rent, food, and healthcare.
• It’s important to file your taxes on time to access CWB payments, as the CRA uses your tax return to determine eligibility.

3. New Online Tools for Taxpayers

The CRA is introducing new online tools in October 2024 to make it easier for taxpayers to access and manage their information. These tools are designed to improve the overall user experience on the CRA website.

Features of the New Online Tools

• MyCRA Portal Enhancements: The CRA has added new features to the “MyCRA” online portal, including improved navigation and easier access to forms and tax-related documents.
• Live Chat with CRA Agents: The CRA is launching a live chat feature, allowing taxpayers to communicate with CRA agents for general inquiries. This feature aims to reduce waiting times and improve support for Canadians needing help with their tax questions.

4. Tax Filing Deadline Reminder

The CRA has reminded all Canadians of an important deadline for filing any outstanding returns. The deadline to submit late 2023 income tax returns without penalties is October 31, 2024. If you have not yet filed your 2023 taxes, this is your last opportunity to do so without incurring additional fees or penalties.

What to Do If You Miss the Deadline

• If you miss the October 31 deadline, you may be subject to interest charges and late-filing penalties.
• To avoid these charges, file your return as soon as possible and, if needed, consider contacting the CRA to set up a payment arrangement.

5. Changes to Climate Action Incentive Payment (CAIP)

The Climate Action Incentive Payment (CAIP) will also undergo changes starting in October. The payment amounts are being adjusted to reflect changes in carbon pricing and energy costs. The CAIP is designed to return the proceeds of pollution pricing to Canadians living in provinces where the federal pollution pricing system applies.

How These Changes Impact You

• Payment adjustments will vary based on the province you live in. Some provinces may see a slight increase, while others might receive smaller payments compared to previous months.
• Residents are encouraged to review their eligibility status to ensure they continue receiving the CAIP as expected.

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6. October Community Volunteer Income Tax Program (CVITP) Workshops

Throughout October, the CRA will hold a series of workshops as part of the Community Volunteer Income Tax Program (CVITP). These workshops are intended to train volunteers who assist individuals with low income, newcomers, and seniors in filing their tax returns for free.

Benefits of the CVITP Workshops

• Volunteers are trained to assist Canadians who may find it challenging to file their taxes.
• Workshops will be held both online and in-person across various provinces, making them accessible to all Canadians interested in joining the program.
• This initiative helps more Canadians receive the benefits and credits they are entitled to.

7. New Fraud Prevention Campaign

To help Canadians protect themselves from tax-related scams, the CRA will launch a fraud prevention campaign in October 2024. This campaign will provide Canadians with the latest information on how to recognize and report fraudulent activities.

Key Elements of the Campaign

• Awareness Sessions: The CRA will host online webinars to educate Canadians about common tax scams and how to spot them.
• Updated Guidance: The CRA will publish updated guidelines on their website, including what to do if you receive a suspicious email or phone call claiming to be from the CRA.
• Partnerships with Banks: The CRA will work closely with financial institutions to help customers recognize CRA scams and avoid giving personal information to scammers.

8. Changes in Child and Family Benefits

In October 2024, the CRA will implement adjustments to child and family benefits, such as the Canada Child Benefit (CCB). The changes aim to provide better support for families in need and ensure that benefit amounts keep up with the cost of living.

How Will Families Be Affected?

• The CCB amounts will be adjusted to reflect inflation, meaning eligible families will receive slightly higher payments to help cover rising costs.
• Families should ensure their tax returns are filed to continue receiving their benefits without interruption.

9. Public Consultations on Future Tax Policy

The CRA has announced that they will begin public consultations in October 2024 to gather input on future tax policies. These consultations will allow Canadians to have a say in how tax policies are shaped.

What You Need to Know About the Consultations

• Who Can Participate: All Canadians are invited to provide feedback, including individuals, businesses, and organizations.
• How to Participate: You can participate through an online survey on the CRA website or attend one of the scheduled town hall meetings, which will be held virtually.
• Topics Covered: The CRA is particularly interested in feedback on topics like improving the tax system’s fairness and exploring new tax credits that could benefit low- and middle-income Canadians.

10. Introduction of the Digital Services Tax (DST)

The CRA will begin enforcing the new Digital Services Tax (DST) in October 2024. The DST targets large digital corporations that generate significant revenue in Canada but may not pay a fair share of taxes.

Impact on Canadians

• This tax targets large corporations like streaming platforms and online marketplaces, ensuring they contribute to the Canadian economy.
• The revenue generated from the DST will fund public services, such as healthcare and education, benefiting Canadians as a whole.

October 2024 is a significant month for Canadian taxpayers, with several updates from the Canada Revenue Agency that will impact individuals and families across the country. From increases in benefits like the GST/HST Credit and Canada Workers Benefit to new online tools and fraud prevention measures, the CRA is working to support Canadians while making the tax process more efficient and secure. It’s important for everyone to stay informed about these changes to ensure they receive all the benefits they’re entitled to and avoid any penalties.