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Received your carbon tax rebate? The Canada Revenue Agency (CRA) has announced that some Canadians may need to return part of their Canada Carbon Rebate—here's what you need to know. The CRA is beginning the process of recovering certain overpayments related to the carbon tax rebate. Some Canadians received more rebate funds than they were qualified for, and now the government is seeking to reclaim that excess amount. The federal government offers a rural supplement to those eligible for the Canada Carbon Rebate (previously known as the climate action incentive) who live in small or rural towns.
This supplement grants an additional 20 percent to residents of Ontario, Alberta, Saskatchewan, Manitoba, Newfoundland and Labrador, New Brunswick, Nova Scotia, and all residents of Prince Edward Island, provided their primary residence is outside a Census Metropolitan Area. According to the CRA, the rural supplement was incorrectly distributed to some individuals who weren't actually eligible to receive it. "To ensure a fair and equitable tax system, the CRA is obligated to recover any overpayments or erroneous payments," the agency stated in an announcement on the Government of Canada's website. The CRA has not disclosed how many individuals are affected by this issue. Notifications to those impacted began being sent out on April 15. For information on eligibility for the Canada Carbon Rebate rural supplement, individuals can visit the government's website. This week, many Canadians will receive their final carbon tax rebate. These payments, issued quarterly to eligible individuals, will see their last distribution in April, as the government has discontinued the federal fuel charge and carbon rebate for individuals effective March 15. Those who filed their 2024 income tax and benefits return electronically by April 2 are expected to receive their final Canada Carbon Rebate payment on April 22. Individuals who filed later will receive their final payment once their 2024 return has been assessed.