What are climate action incentive payments? + MORE Aug 14th

Can I claim home renovations on my taxes in Canada?

There is currently a Canada Greener Homes Initiative that provides both grants and loans for home evaluations and retrofits, Joan. 

See the below chart for eligible retrofits. 

Home improvementAmountGood to knowSpace and water heatingUp to $5,000If a pump is installed in a home by a licensed professional and is on the eligible product list for ground source heat pumps, air source heat pumps or heat pump water heaters, it may qualify. The pump must be purchased in Canada or from a distributor located in Canada. Home insulationUp to $5,000Upgrades include attic, cathedral ceiling, flat roof, exterior wall, exposed floor, basement or crawl space.Air-sealingUp to $1,000Air sealing any cracks or gaps around the house to regulate air flow…

These deposits are the first round of climate action incentive payments, also called carbon tax rebates, made to residents of Alberta, Saskatchewan, Manitoba and Ontario. This money replaces the climate action incentive credit you claimed on your personal income tax returns in the past couple of years. The payments started in July 2022, and they will go out automatically four times a year, on the 15th of April, July, October and January.

Why is there a carbon tax rebate?

Carbon tax rebates are paid out from money collected as part of Canada’s carbon pricing system. In 2019, the federal government put a price on carbon pollution, with the aim of reducing greenhouse gas (GHG) emissions. At the time, the national minimum price was $20 per tonne of carbon dioxide equivalent (CO2e)…

How much can you transfer from a LIRA to an RRSP?

Katherine, Ontario residents can transfer up to 50%—and in some cases, up to 100%—of their locked-in retirement account (LIRA) to a registered retirement savings plan (RRSP), without needing any RRSP contribution room. And that’s a good thing. It provides extra flexibility with retirement income planning.

Every province has its own set of rules for unlocking money from a LIRA that arose from a provincially regulated pension in that province. There are also federal rules for federally regulated pensions. These are the common ways to qualify in Ontario for plans registered in Ontario: 

Up to 50% unlocking after age 55Several financial hardships (up to 100%)A shortened life expectancy (up to 100% if life expectancy is two years or less)If possible, have your registered account fees (RRSP, RRIF, TFSA) taken from the LIF…