The Canadian government started disbursing a one-time $500 payment to qualified low-income renters on December 12, 2022. In order to assist renters in a difficult environment of high inflation and rising rental prices, the tax-free payment was created as an addition to the current Canada Housing Benefit.

The rising cost of living makes it even more challenging for Canadian renters to find inexpensive, long-term, and secure housing—the Canadian government believes that 1.8 million Canadians are qualified for the benefit.

Do you need more help as a renter? You can learn more with this article.

The Housing Benefit Top-up

In Canada, the cost of renting an apartment is rising. According to the most recent National Rent Report, the average rent in Canada has jumped by about 12% in the past year, making it difficult for renters to find an inexpensive place to live.

As a result, the Canadian government has announced a one-time $500 tax-free top-up payment to the current Canadian Housing Benefit in order to directly assist low-income tenants.

Who is Eligible to Apply for the $500 Top-up?

To apply, you must meet each of the requirements listed below:

• You are at least 15 years old as of December 1, 2022;
• You must be a resident of Canada in 2022.
• Have submitted your tax and benefit return for 2021.
• As of December 1, 2022, you have your primary residence in Canada.
• Have paid your own housing rent as of 2022;
• Have spent at least 30% of your 2021 adjusted net household income on rent in 2022.

To be eligible for the $500 top-up, you must fulfill all requirements.

How to apply?

You can submit an application through CRA My Account or My Service Canada Account. You may also call the CRA at 1-800-282-8079 to submit an application.

You will mention any residences you lived at in 2022, as well as the amount of rent you paid at each. You will provide the name and contact details for your landlord. You will need the information from your spouse’s or common-law partner’s 2021 tax return.

The deadline for applications is March 31, 2023.

What more should I know?

The payment has no effect on your taxes and is not taxable. Therefore, the $500 benefit is not required to be reported on your tax return.

You cannot apply on behalf of another person. Keep all documents and receipts that attest to the authenticity of the information provided in your application. The CRA might request more information if they decide to review your application.

You can also receive more debt assistance that would stop all interest and reduce your debt by up to 80%. EmpireOne Credit has debt experts that will walk you through this process, so you need not worry about your overwhelming debt anymore. To learn more, contact us for a free consultation at (416) 900-2324. We are friendly, and we don’t judge. Get in touch!