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Quiz: How benefits differ from refunds

6 questions

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1 A caller uses "refund" and "benefit" interchangeably. What is the distinction? A refund is taxable and a benefit is not; otherwise they are the same A refund returns tax the taxpayer overpaid; a benefit is a payment made regardless of whether the recipient paid tax A benefit is a refund paid in instalments through the year A refund is paid annually and a benefit monthly; otherwise they are the same

Answer key unconfirmed — rests on 1 unverified claim.

2 What is the difference between a refundable and a non-refundable credit? A refundable credit can be claimed in a later year; a non-refundable credit cannot A refundable credit is paid whether or not the individual has tax payable; a non-refundable credit only reduces tax payable A non-refundable credit can be transferred to a spouse; a refundable credit cannot A refundable credit is paid monthly; a non-refundable credit is applied at assessment

Answer key unconfirmed — rests on 2 unverified claims.

3 A recipient's income dropped sharply in January and she asks why her benefit payments have not increased. Payments adjust the month after a change in income is reported Payments adjust once CRA receives the current year's T4 slips Income changes never affect entitlement; only marital status and children do Entitlement is calculated from the previous year's family net income, and amounts are recalculated each July

Answer key unconfirmed — rests on 3 unverified claims.

4 A recipient's spouse has not filed for two years. Her own returns are up to date. What happens to her benefits? Nothing — her own filing is what matters Payments stop permanently and cannot be recovered for the missed period Payments continue at a reduced rate until the spouse files Payments stop, because both partners must file for family net income to be determined; they are generally paid retroactively once the outstanding return is assessed

Answer key unconfirmed — rests on 2 unverified claims.

5 A recipient separated in March and plans to mention it when she files next spring. What should she be told? She should wait, because reporting mid-year suspends payments until the next recalculation That is fine — the return is where marital status is reported Changes must be reported promptly rather than at the next return, because benefits are paid in advance of final determination and a late report creates an overpayment she must repay It makes no difference either way, since entitlement is recalculated in July regardless

Answer key unconfirmed — rests on 2 unverified claims.

6 Which of these are true of the main benefit programs? Select all that apply.

Select all that apply.

Provincial and territorial programs are frequently administered by CRA and may be combined with federal amounts in one payment The GST/HST credit is paid quarterly and requires no application beyond filing a return The Canada workers benefit is a refundable credit for low-income workers with an advance payment mechanism The Canada child benefit is paid monthly and is income-tested on family net income The Canada child benefit is payable for children under 21

Answer key unconfirmed — rests on 4 unverified claims.

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