Canada Child Benefit

The Canada Child Benefit is a sizeable amount for those who qualify.  The benefit is a tax-free amount paid to families with children under the age of 18.  If you have two young children and qualify based on your income and other criteria, you could receive monthly checks of over $1,000.

Who Receive the Benefit?

The benefit is available to the person primarily responsible for the care and upbringing of the child.  To be eligible for the CCB, you have to meet all of the following conditions:

• You must live with the child, and the child must be under 18 years of age.
• You must be primarily responsible for the care and upbringing of the child.
• You must be a resident of Canada for tax purposes.
• You or your spouse or common-law partner must be:
  • a Canadian citizen
  • a permanent resident
  • a protected person
  • a temporary resident who has lived in Canada for the previous 18 months, and who has a valid permit in the 19th month
  • an Indian within the meaning of the Indian Act, if you are not a Canadian citizen

How do you receive the funds?

When your child is born, you will receive a form to complete the birth registration for your newborn.  The form allows you to give consent for this information to be shared with the CRA.  The vital statistics agency will send this information to CRA and you should receive confirmation within eight weeks.

Alternatively, you may apply online via www.cra.gc.ca/myaccount or you may complete the Canada Child Benefits Application form and mail it to the appropriate tax center.

The benefits continue to be available to those who file a personal tax return each year and have a household income that qualifies for the benefit.  Filing a return allows CRA to determine if your family income level allows you to be eligible for this benefit.

How much do you get?

Families can get up to $6,833 for each child under age 6 and up to $5,765 for each child aged 6 to 17 for the year starting July 2022.  These amounts are tax-free.

If your (adjusted) family net income is less than $32,028, you would qualify for the maximum benefit.  If your family net income is more than this amount, there will be reductions in the benefit, the amount of which is determined by the number of children and your family net income.  CRA offers a CCB calculator to estimate your benefits.

Shared Custody

Parents with shared custody will get 50% of the benefits based on their own family net income.  Shared custody is considered when the child shares their time equally (at least 40% of the time) with both parents.  If you have part-time custody, you will need to determine if you qualify for shared custody.

Multiply your benefits

Additional benefits may also be available, such as the Canada Education Savings Grant, GST/HST credit, workers benefit, child disability amount and the disability tax credit.

Conclusion

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. ©2022 Shajani LLP.

Shajani LLP is a CPA Calgary, Edmonton and Red Deer firm and provides Accountant, Bookkeeping, Tax Advice and Tax Planning service.