Military life for individuals and their families is very rewarding on many levels. But also, it is very stressful due to training, & deployment in other parts of the world. Relocation to various parts of Canada as well as overseas. The Canadian Government has certain benefits & programs available for Military personnel as well as individuals that have served in the police force.
Let’s look at what the Canadian Government has to offer.
Tax Relief Measures
For members of the Canadian Armed Forces and police officers deployed on international operations.
You are not required to pay income tax on money earned while on active duty, whereas previously this was based on the risk levels of your mission. If you previously paid taxes, these payments will be retroactive to January 1, 2017.
To learn more about this relief, review this link from the Government of Canada.
If you have received military or police pay for both low and high-risk missions, the total of your income from all of these missions will appear in box 14.
However, in another section of your slip, some of that money will be noted with code 43, which indicates that it is not taxable.
When completing your income tax return, you should report the entire amount from box 14 as income. However, you won’t be taxed on all of it. As indicated above, when you claim the amount affiliated with code 43 on line 24400, it is subtracted from your net income so that you don’t pay tax on it. Instead, you only pay tax on the income you earned from low-risk operations.
For Québec Resident this amount will be found on your Relevé 1 box A-7 which in turn applies to line 297 of your TP-1 form. And this one from Revenu Quebec.
Disability Pension
This pension offers tax-free monthly payments to eligible members. The amount you receive is based on individual circumstances. The degree of the disability has affected your ability to perform your duties, as well as the length of time you will be disabled.
Eligible injured personnel include:
- War Service Veterans
- Civilians who supported the Canadian military during wartime.
- A current or former member of the RCMP
- Canadian Armed Forces (CAF) members and Veterans.
- Survivors/Surviving dependent
Canadian Forces Income Support Benefit – Employment Earnings Exemption
This exemption allows you to earn a certain amount of income before your CFIS benefit is reduced. Each circumstance is unique, so for more detailed information, review this link. For monthly benefit amounts, this link will assist.
Relocation Benefits
There are certain relocation expenses that can be deducted for military personnel, which is applied to the CRA T1-M form for moving expenses. This form is part of your income tax package when filing your tax return. These can be claimed for moves within Canada and for foreign moves when you hold Canadian citizenship. For more detailed information, consider reviewing the Tax implications guide on relocation benefits for military personnel directly from the Government of Canada website, as there are many variables for military personnel.
Paid Education
The benefit of being part of the Canadian Armed Forces (CAF) is that you will receive paid tuition in 6 different programs. To learn more, have a look at this link from the Government of Canada website. In some cases, you will get paid while you train, depending on the program you choose. This is not taxable and does not need to be claimed on your tax return.