Overview
The Canada child benefit (CCB) is a tax-free monthly payment made by the government to eligible families to help with the cost of raising children under 18 years of age. This benefit is designed to support families with varying incomes, providing financial assistance that adjusts based on specific criteria.
Understanding the nuances of the CCB, including eligibility and how payments are calculated, is crucial for Canadian families to maximize their support.
- Eligibility: Discover the key requirements for receiving the CCB, including residency status, income thresholds, and the age of your children, as detailed in benefit criteria.
- Payment Calculation: Learn how the Canada Revenue Agency (CRA) determines your monthly benefit amount, considering factors such as adjusted family net income and the number of eligible children.
- Maximizing Benefits: Explore strategies and tips to ensure you receive the highest possible CCB payments, including advice on optimizing your income and reporting changes promptly.
- Application Process: Understand the steps involved in applying for the CCB, whether you are a new parent or have recently moved to Canada.
Understanding the Canada Child Benefit (CCB)
Beginning July 2016, the Liberal government combined the Canada Child Tax Benefit, National Child Benefit Supplement and the Universal Child Care Benefit into the Canada Child Benefit.
Under the new Canada Child Benefit, families with children under the age of 18 will be eligible for a maximum annual benefit of $6,400 ($533 per month) per child under the age of 6 and $5,400 ($450 per month) per child aged 6 to 17. Families with a disabled child will receive a further benefit of $2,730 per disabled child. The benefit is gradually reduced until it reaches zero as your family net income increases beyond $30,000. The monthly payment is tax-free.
If you received the Canada Child Tax Benefit or the Universal Child Care Benefit you do not need to apply to receive the Canada Child Benefit. However, you and your spouse/common law partner must file an income tax return every year to continue receiving the Canada Child Benefit.
If you were receiving direct deposit payments for the Universal Child Care Benefit, you will continue to receive direct deposits payments for the Child Care Benefit.
If you would like to get an estimate of what your Canada Child Benefit payment would be, click here.
To apply for the Canada Child Benefit, complete the Canada Child Benefit Application (RC66) form.
The benefit is gradually reduced until it reaches zero as your family net income increases beyond $30,000.
Maximizing Your Canada Child Benefit: KWB’s Advice
The key to maximizing the CCB lies in minimizing a household’s net income. Any deductions that lower your net income (the amount on line 236 of your federal tax return) will result in higher monthly benefit payments.
For example, people who don’t contribute the maximum to their registered retirement savings plans (RRSPs) miss out on more tax-free CCB income.
Claiming costs like child care, moving expenses or union dues lowers the taxable net income amount as well. Keep those receipts.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
Thanks to Johnny Kwong of KWB Chartered Accountants for providing this content.