Eligible Ontarians can expect climate payment on Friday. Here’s what you need to know

Torontonians might notice a little extra money in their bank accounts on Friday as they receive the first instalment of the federal government's Climate Action Incentive Payment (CAIP).

Eligible residents can expect to see the first of three payments on July 15, the Canadian Revenue Agency (CRA) said on Twitter. The CRA added further payments will come on Oct. 15, and Jan. 15.

The first instalment Canadians receive on Friday will be a double payment, as it will include a retroactive amount" from the month of April.

Here's what you need to know about the program:

What is the CAIP? The credit is meant to help individuals and families manage extra costs from the federal government's taxes on fuel, gas and pollution, according to the Canadian Revenue Agency.

In Ontario, the taxes are administered at a federal level.

The federal government has been giving eligible residents the proceeds from those charges once a year since 2018 as part of the CAIP.

Who is eligible for the tax-free credit? To be eligible, you must be a resident of Alberta, Saskatchewan, Manitoba or Ontario on the first day of the payment month and the last day of the previous month.

There are three basic categories of people who are eligible: individuals 19 or older, spouses or common-law partners, and anyone under 19 living with their parents.

If you are a single parent, your first child may be eligible to be in the common-law/spouse category.

How much will I receive? On Friday, individuals 19 or older in Ontario can expect around $186.50.

Ontario spouses, common-law partners, and first children in single-parent families can expect $93.

Anyone under 19 living with their parents in Ontario can expect $46.

CAIP includes a 10 per cent supplement for residents in small and rural communities. This supplement only applies to residents of Alberta, Saskatchewan, Manitoba, and Ontario, who live outside a Census Metropolitan Area."

How do I receive the payment? The CRA will have determined eligibility from when individuals filed their 2021 income taxes. Eligible people should see the credit in the form of a cheque or direct deposit automatically, without needing to apply.

Only one partner in a spousal or common-law relationship will get the payment.

People with tax debt will see the credit automatically subtracted from the amount they owe.

Revenue Canada warns eligible Canadians it may take up to 10 working days to receive a CAIP payment.

Correction - July 15, 2022: This article was edited to correct the payments under Climate Action Incentive Payment.

Isaac Phan Nay is a breaking news reporter, working out of the Star's radio room in Toronto. Reach him via email: iphannay@thestar.ca