Canada Child Benefit

The Canada Child Benefit (CCB) is a significant financial support for families with children under the age of 18, offering tax-free payments to those who qualify. For families with two young children, for instance, the monthly checks can exceed $1,000, providing substantial assistance with the costs of raising children.

Who is Eligible for the Benefit?

The CCB is designed for the person primarily responsible for the care and upbringing of the child. To be eligible, you must meet the following criteria:

• Live with the child, and the child must be under 18 years of age.
• Be primarily responsible for the child’s care and upbringing.
• 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 with a valid permit in the 19th month, or an Indian within the meaning of the Indian Act, if not a Canadian citizen.

How to Apply for the CCB

Upon the birth of your child, you’ll receive a form for birth registration, which allows you to consent to share this information with the Canada Revenue Agency (CRA). This information is then forwarded to the CRA by the vital statistics agency, and you should receive confirmation within eight weeks.

Alternatively, applications can be made online through the CRA’s website at www.cra.gc.ca/myaccount, or by completing the Canada Child Benefits Application form and mailing it to the appropriate tax center.

Benefit Amounts for 2024

For the year starting July 2024, families can receive up to $6,833 for each child under age 6 and up to $5,765 for each child aged 6 to 17. These amounts are tax-free and are adjusted annually for inflation. Families with an (adjusted) family net income of less than $32,028 qualify for the maximum benefit. For incomes above this threshold, the benefit amount is gradually reduced based on the number of children and the family’s net income. The CRA provides a CCB calculator on their website to help estimate your benefits.

Shared Custody Arrangements

In cases of shared custody, each parent can receive 50% of the benefit amount based on their own family net income, provided the child spends at least 40% of the time with each parent.

Additional Benefits

Families receiving the CCB may also be eligible for additional benefits, such as the Canada Education Savings Grant, GST/HST credit, workers benefit, child disability amount, and the disability tax credit.

Important Updates and Tips for 2024

• Automated Benefits Application (ABA): In certain provinces, the ABA service allows for a streamlined application process for newborns, demonstrating the collaboration between the CRA and provincial services.
• Direct Deposit: Opting for direct deposit ensures faster payment. If you’re already receiving payments for other children via direct deposit, no additional application is necessary for newborns. Remember to inform the CRA of any address changes to ensure uninterrupted benefit payments.
• Filing Tax Returns: It’s essential to file a personal tax return each year to continue receiving the benefit, as this allows the CRA to assess your eligibility based on your family’s income level.
• Personal Information Collection: The collection of personal information under the Income Tax Act is for the administration of the CCB and related programs, ensuring transparency about data usage.

By keeping these points in mind, families can better understand and access the Canada Child Benefit, ensuring they receive the financial support they’re entitled to in 2024.

Conclusion

The tax filing process also provides an occasion to strategize for tax planning opportunities.  Shajani CPA have a team of Calgary Accountants, Edmonton Accountants and Red Deer Accountants ready to assist you in your personal tax filings and tax planning strategy.    Consider using us to file your tax returns.

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. ©2024 Shajani CPA.

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