What are ways to get money from Canadian the government? – In today’s tough period of high inflation getting free money from the Government of Canada goes a long way for a lot of families and individuals and enables them to make ends meet. The Canadian government provides free money in the form of grants, tax credits and income support programs to put the tax dollars of citizens back in their pockets.
The trade-off while accepting free monetary assistance from the Canadian government is that you need to pay taxes on the assistance you receive. While some financial aid programs and benefits are completely tax-free payments, the sum will count towards your taxable income. This guide will throw light on how to get free money from the Canadian government.
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Highlights of this Post
What Are The Eligibility Criteria To Get Free Money From The Canadian Government?
To qualify for free money from the Canadian government, eligible candidates need to fulfill the eligibility criteria in terms of their age, financial situation, income, residency and disability requirements.
Age And Residency Criteria
Applicants should be at least 18 years or above in age and be a citizen of Canada or a legal resident of a province from where they are applying to get financial assistance.
Canadian citizens need to demonstrate financial need to cover their basic living expenses. A caseworker of the government assistance program will assess their household income, resources and assets to determine their eligibility. People belonging to a low or moderate income group then qualify easily for assistance.
Household Size and Disability Requirements
A lot of government assistance programs prioritizes disabled individuals who are living with a physical or mental disability that is preventing them from being able to work or sustain themselves. You can receive assistance from the government if:
- Your disability limits your capability to take care of yourself,
- Your disability has been verified by a qualified healthcare professional
- You have an impairment that is expected to last one year or more.
Following are the relevant documents that you are required to submit along with your application:
- Proof of income in the form of payment stub, employment information, tax return, bank statements
- Homeownership or lease agreement
- Receipts for healthcare, household and home heating services
- Demonstrate financial hardship
- Proof of citizenship and residency
- Name of all the household members living with you
- Social insurance numbers and the date of birth of all the members in your home
What Are The Different Ways To Get Free Money From The Canadian Government?
Following is the list of benefits and aid programs that you can take advantage of to get free money from the Canadian government.
Check Out The Unclaimed Cheques
You should note that you might have already earned free money as a form of tax credit, but you have no idea about it all. There is free tax credit money that is unclaimed. You have to visit the website of The Canada Revenue Agency (CRA) and get all information related to your tax or benefit cheques which you have not claimed from them. . But if you do not have a CRA account then you need to register yourself and log in using “My Service Canada Account”.
Child Benefit Programs In Canada
The Canada Child Benefit is one of the first assistance programs that makes monthly payments to eligible guardians and parents with minors. The program is geared towards low to moderate-income Canadian families with children and is not taxable. The amount of assistance depends on your child’s age, total number of children in the household and your family income.
Younger children will get more assistance compared to older children. Besides, parents can get additional disability supplements if they have children with special needs.
If you’re interested in getting free money from the Canadian government through the Canada Child Benefit program then you can use the CRA child benefit calculator to see how much you can receive. By making an RRSP contribution you can increase your Canada child benefit amount.
Ontario child benefit is a provincial program designed for low-income families having children under 18 years of age. The eligible families get monthly payments along with their Canada child benefit. Low to moderate-income families get assistance up to $1607 per child through the Ontario Child Benefit program to cover the cost of raising children.
Families can receive this benefit irrespective of whether they are working or not. The Canada Revenue Agency administers this program on behalf of the Ontario government. The eligibility criteria depend on your family’s net income and the number of children you have below 18 years of age.
The Alberta Child And Family Benefit Program is a tax-free amount that is paid to eligible families having children below 18 years of age. The maximum amount of assistance through this program in 2023 for eligible families is $1410 for the first child and $705 for the second child.
The program is designed for families so that they can provide a better quality of life to their children. The criteria is to be a guardian of one or more children, be a resident of Alberta, must be filing tax return and meet the income criteria of the program.
The province of British Columbia offers early child tax benefits to families so that they can provide a good quality of life to their children. The maximum amount of assistance that you can receive is $1750 for the first child, $1100 for the second child and $900 for the additional child. The amount of assistance depends on your adjusted family net income and family composition.
Education Assistance Programs In Canada
A full-time student enrolled at a designated school in Canada can receive assistance up to $6000 annually or $750 each month through the Canada Student Grant program and offset the cost of their full-time post-secondary education.
Students can qualify for this assistance program for each year of their undergraduate studies. The amount of assistance that you can receive through this grant will depend on your household size and income. The program targets low to moderate-income full-time students and is not taxable.
Grab Grants using an RESP
RESP stands for Registered Education Savings Plan that helps you to save and invest money for your kid’s educational purposes.
The best thing about the program is that it is completely tax free and they offer free money using the Canada Education Savings Grants. If you contribute to an RESP, the Canadian government 20 percent of your deposit amount that is around $500 every year.
The highest grant that is offered per child is around $7,200. The lower and middle income families can also qualify for the grant through Canada Learning Grant. The government contributes a maximum amount of $2,000 per child. They start with an amount of $500 in the first year and then contribute around $100 every year until the child turns 15 years of age.
Maximize your TFSAs and RRSPs
As you already know that High-interest savings accounts are quite beneficial but it is always wise to grow your wealth tax free. You should note that there are mainly two important tools at your fingertips that are Tax Free Savings Accounts and Registered Retirement Savings Plans. The best thing you can do is fill them with investment or cash just similar to the bonds and stocks.
The more you invest in an RRSP, it will help you in minimizing your overall taxable income. Apart from that the dividends, earning, interest that are made in a TFSA will be highly shielded from the taxes and even from the capital gains tax.
Net Twice As Much for School
The grant has been specially designed for students that belong from the low and middle income families who have enrolled for undergraduate studies. The Canada Student Grant for full time students is offered a grant up to $6,000 per year and offers around $570 per month while you are continuing your studies from an institution.
Old Age Security Benefits In Canada
The Canada Pension Plan is a monthly taxable benefit designed for senior citizens to replace a part of their income after they retire. On qualifying for this program you can receive assistance for the rest of your life.
You need to be 60 years or above of age and have made at least one valid contribution to the Canada Pension Plan. The amount of assistance that you can receive will be based on your average earnings throughout your working life, the age you started your CPP retirement pension and your contributions.
A monthly benefit paid to low-income eligible Canadians who are 65 years or above in age is the OAS pension. It is a free government assistance program that is deposited into the candidate’s bank account or through a check in the mail.
The maximum monthly assistance through this OAS pension in 2023 is up to $698.60 for seniors in age between 65 to 74 and $768.46 for seniors over 75 years or above in age. Senior citizens can get maximum benefit if they have lived in Canada as an adult for a minimum of 40 years or else at a prorated amount.
The benefits received to seniors are clawed back when their income exceeds a particular threshold for instance $1346264 for seniors aged 65 to 70 years and up to $137331 dollars for seniors aged 75 and above.
Senior citizens in Canada who belong to the low income group can qualify for additional financial assistance through the Guaranteed Income Supplement Program. The program offers monthly benefits for eligible OAS recipients and senior citizens can get assistance up to $995.99 monthly. This program provides monthly non-taxable benefits to low-income senior citizens and provides them much-needed financial relief. To receive assistance you need to file a tax return and complete an application form to your local Canada office.
Free Government Money For Low-Income Individuals And Families In Canada
There are a lot of financial and social assistance programs across Canada that are low-income families and individuals with free government money based on their financial situation, residency, health status and family size. Let’s take a look at the following programs
One of the main social assistance programs in Canada designed for low-income earners is Ontario Works. The program offers financial assistance to eligible Ontarians to cover their basic needs like food, housing etcetera.
Financial assistance as well as health benefits are provided by the Ontario government through the Ontario Disability Support Program to eligible individuals suffering from a disability that is limiting their ability to work.
The amount of resistance that you can receive through this program is based on a lot of factors such as the number of children you have, the age of family members, household size, the type of shelter you are living in, your health condition, family income etc.
A couple with a disability can qualify for maximum assistance of $2070 per month. For more Disability Support Programs in Canada click here.
Few more social and income assistance programs across Canada for low-income families are as follows
Tax Credits And Benefits In Canada
A refundable tax credit known as the Canada Workers Benefit is a financial assistance program that assists low-income families and individuals in Canada to gain additional cash in their pocket. Individuals can apply for this tax benefit program while filing their annual income tax return. The program has two parts: a basic amount and a disability supplement.
Eligible individuals can get a basic amount of a maximum of $1428 for a single person who is earning less than $23495 annually. The maximum basic amount is $2461 for Canadian families having income less than $26805. The Canada Workers Benefit is taxable.
Every individual has to pay Goods amd Sales Tax or GST while shopping or paying for services in Canada. Some provinces charge a different provincial sales tax apart from the federal sales tax while others may combine the federal and provincial sales tax into one Harmonized Sales Tax or HST.
The tax credit is a quarterly rebate issued to eligible individuals and families. The maximum amount that an individual can receive is $65 for one person’s household, $612 for a couple and $161 for a child under 19 years of age. The tax credit that you can get will depend on your household size and income.
The Home Accessibility Tax Credit is a non-refundable tax credit program designed for low income earners provided they are facing mobility challenges.
The tax credit helps them offset the high cost of installing mobility chairs or ramps in their property. Taxpayers can claim a maximum amount of $10,000 in eligible home upgrades and get a 15% return during the tax season.
A non-refundable tax credit known as the Canada Training Credit offers training support for low-income Canadians who are in need between 25 to 65 years.
Eligible adults can receive assistance of up to $250 every year and maximum assistance of up to $5000 annually through the refundable tax credit for adult education. The accumulated tax credits can be used to offset the cost of occupational training courses or college tuition.
Dental And Medical Support In Canada
The Canada Dental Benefit is a non-taxable assistance program from the federal government that is geared towards low-income families who are earning less than $90,000 every year and in need of dental assistance.
Qualified families can get tax-free payments of $260, $390 or $650 per child and easily offset the cost of dental checkups and procedures. The payment can be received two times a year by your family.
The Seniors Care Grant is for low-income seniors with household, home heating and healthcare costs in the province of Nova Scotia. Grants up to $750 are provided to eligible households.
To qualify for assistance you need to be 65 years or above in age and fulfill the household net income and other criteria required by the program.
Some other medical programs include the Manitoba Pharmacare Program, Manitoba Health, Ontario Health Insurance Plan, Continuing care programs and services in Nova Scotia, Nova Scotia Seniors Pharmacare Program etc.
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Energy Or Home Repair Assistance
To combat climate change in Canada the federal and provincial governments provide several tax credits and government grants to make residents of homeowners eco-friendly.
You can use the following programs to reduce the cost of home improvement and make your home energy efficient, reduce home energy bills and save money in the long run.
Canadian citizens can be eligible to receive free money worth $5600 through the Canada Greener Homes Grant. The program includes assistance up to $5000 for making energy efficiency retrofits into your property and $600 for home evaluation. The program has set aside a $2.6 billion grant for eligible homeowners so that they can make their homes energy-efficient.
If you’re unable to replace your old doors and windows and need home renovation to make your property energy efficient or improve the insulation and install solar panels you can apply for the Canada Greener Homes Grant.
The Home Adaptations For Seniors Independence Program covers senior citizens who are 55 years or above in age and wish to make a few adaptations to their homes to accommodate their changing abilities.
The program provides financial assistance so there are enough citizens to install handrails, lever handles on doors, easy-to-reach work and storage areas in the kitchen, bathtub grab bars and seats, lever handles on doors etc.
Eligible homeowners can receive assistance up to $20,000 to make necessary home repairs or adaptations.
With the rise of inflation, the cost of goods and services is increasing with each passing day. Getting free money from the government and other sources can help both your budget and wallet. From registered savings accounts to free government assistance programs the government of Canada offers a wide range of programs and financial aid opportunities to incentivize people so that they can save money and invest in their bright future. Citizens of Canada who want to pay less tax and save more money can apply for the aforementioned resources.
Free Money For Seniors From Government – Hardship Grants for Seniors Considering different states for your first home? Don’t miss our recent blog post on Florida down payment assistance programs. Compare your options and make the best decision for your future.
Frequently Asked Question
Is it possible to get free money from the Canadian government?
Yes, it is possible to get free money from the Canadian government. There are several ways to get free money from the Canadian government. We have already mentioned all the ways in the article; go through it to get detailed information.
What amount of money can I get on welfare in Canada?
The amount of money generally depends on your work and whether you are single or having a spouse. Generally the amount ranges from $726 for a single person and $1774 for a couple who do not have any work.
What is the tenure to stay on welfare in Canada?
You should note that welfare is limited to 24 months that is within a 60- month period. Welfare is provided for 2 years for a 5 year period.