British Columbia renter's tax credit
Great news for renters in British Columbia! Starting January 1, 2023, you can claim the new renter's tax credit of $400. Don't miss out on this opportunity to save on your taxes!
Good news for tenants! The new credit becomes effective from January 1, 2023, allowing you to claim this refundable income tax credit of $400 if you meet all of the following conditions:
- renting and occupying a rental unit for a minimum of six months in a calendar year in British Columbia.
- being 19 years old or above, married or in a common-law partnership, or a parent.
- residing in British Columbia as of December 31 of the year for which the credit is being claimed.
If you have a spouse or common-law partner, only one credit can be claimed per couple even if both rent their own homes.
You qualify for a $400 credit annually if your adjusted family net income is under $60,000, with a reduced amount for incomes between $60,000 and $80,000, decreasing by 2% for each dollar over $60,000, and ceasing entirely at $80,000 or above. Additionally, the adjusted family income threshold of $60,000 will be adjusted annually for inflation.
You need to be an eligible renter for at least six months in 2023.
Scenarios where you can't claim the credit:
The following amounts are not considered as rent for the purposes of the credit:
- A rent that was paid to someone related to you
- A rent paid for a campsite, moorage or manufactured home site
- A rent on accommodations your employer paid for, unless the amount was included in your income for the year
- A rent paid under a rent-to-own plan
You are ineligible for this credit if you were confined to a prison for over six months or employed by a foreign country or a family member of such an employee.
You cannot claim the British Columbia renter's tax credit on your pre-bankruptcy or in-bankruptcy return.
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Disclaimer:
“Please note that the information provided in this article is of a general nature and may not be accurate for your specific situation. The information is current as of the date of posting and is not intended to provide legal advice. It's always recommended that you consult with a professional accountant and lawyer for personalized guidance and advice."
