All that you need to know about Canada Dental Benefit

To read more chapters, click below:

Chapter 1: 10 tax benefits that low-income Canadians should be aware of

Chapter 2: Applying for Canada Workers Benefit

Chapter 3: How to apply for GST/ HST credit in 2023?

Chapter 4: All you need to know about Canada Child Benefit

Chapter 5: 8 ways in which Canada’s New Affordability Plan helps make life cheaper for you

Chapter 7: Ontario – Income Tax Brackets, Rates, & Provincial Tax Credits

Chapter 8: Quebec – income tax brackets, rates, and provincial tax credits

Chapter 9: Understanding the Tuition Tax Credit in Canada: All You Need to Know

Chapter 10: Understanding Canada Training Credit

Chapter 11: Maximizing Your Tax Return: Uncovering the Benefits of Seniors' Tax Credits in Canada

Chapter 12: Canada Taxes 2022: Federal Tax Brackets, Rates and Credits

We all know that the cost of dental treatments has skyrocketed. Dental health is such an important part of your overall wellbeing. But a lot of times it is overlooked. Most people don’t visit a dentist on a regular basis. They only go if there is a dental problem. This can be because of the high cost of dental treatments.

Canada offers world class healthcare facilities, but the dental health services are quite expensive. This is the reason that Federal Government has developed an interim program called Canada Dental Benefit. In this chapter we share all the details about this program – what is it, who all can apply, province wise benefits, and how does Canada Dental Benefit program work.

What is Canada Dental Benefit?

The interim Canada Dental Benefit aims to reduce dental expenses for eligible families with annual incomes below $90,000. Eligibility extends to parents and guardians who cover the cost of dental care for a child under the age of 12 and who do not have access to a private dental insurance plan.

This program is designed to provide financial assistance to families who may face challenges in accessing affordable dental care. It helps ensure that children, particularly those without private dental insurance, receive the necessary dental services to maintain their oral health. By offering this benefit, the government aims to support the well-being of families and promote dental care for young children.

Who can apply?

The interim Canada Dental Benefit operates under two distinct benefit periods, with eligibility criteria tailored to the period when your child receives dental care. It's important to assess whether you meet the criteria for each child for whom you are seeking coverage.

Eligibility criteria

For dental care services your child receives in –

• Period 1: October 1, 2022 to June 30, 2023
• Period 2: July 1, 2023 to June 30, 2024

Second benefit period – eligibility checklist

You need to meet all the following criteria for each child that you apply Canada Dental Benefit for –

• Your child was born on or after July 2, 2011 (meaning they are under 12 years old as of July 1, 2023).
• Your child receives dental care services in Canada during the period from July 1, 2023, to June 30, 2024.
• Your child does not have access to a private dental insurance plan.
• Your child's dental expenses are not entirely covered by another dental program offered by any level of government.
• You are the sole parent or caregiver receiving the Canada Child Benefit (CCB) for your child as of July 1, 2023.
• You paid your taxes in 2022.
• Your spouse or common-law partner has submitted their 2022 tax return

Or

You are not in a spousal or common-law partnership as of July 1, 2023.

• Your adjusted family net income for 2022 is below $90,000.
• No one has already applied for the additional payment to cover your child's dental costs for the initial benefit period.

The Canada Revenue Agency (CRA) conducts routine checks to verify the eligibility of individuals who have received payments.

If your application is chosen for review, we may request additional information to authenticate your application. If it is determined that you do not meet the eligibility criteria or if you are unable to provide the necessary information, you will be required to reimburse any payments you have received.

How does Canada Dental Benefit work?

As part of the government's launch of the Canada Affordability Plan, they have introduced the new Canada Dental Benefit. As of October 1, 2022, only the initial benefit period of this dental program has been initiated. Unlike some other government benefits, this one is not automatically granted when you file your taxes; you must actively apply for it.

Presently, the application process for the dental benefit can be completed online through your My CRA account, or you have the option to apply via phone. The benefit offers different payment amounts, but it's essential to note that it is currently an interim program, and the application deadline for the first period is June 30, 2023. The second benefit period will commence on July 1, 2023, and run until June 30, 2024, with applications opening on July 1, 2023.

How much amount will I get?

The amount you receive in dental benefits is determined by your adjusted family net income, with the following breakdown –

• If your family's adjusted net income is $70,000 or less, you can receive $650 for each eligible child.
• If the adjusted net income falls between $70,000 and $79,999, the benefit is $390 for each eligible child.
• For adjusted net incomes between $80,000 and $89,999, the benefit amount is $260 for each eligible child.

You can receive up to two payments per child, one for each benefit period of the program. Additionally, each payment may vary because your financial situation can change from year to year.

How many payments can I get?

Under this benefit, you have the option to apply for a maximum of two payments for each qualifying child. If you have multiple eligible children, you can choose to apply for them collectively or individually.

• First benefit period

During the initial benefit period, which spans from December 1, 2022, to June 30, 2023, you were eligible to apply for just one payment for each eligible child who received dental care between October 1, 2022, and June 30, 2023.

• Second benefit period

During the subsequent benefit period, you can apply for either one or two payments for each eligible child, depending on your specific circumstances.

If you have already received a payment for a child during the first benefit period, that child will only qualify for one additional payment.

How to apply for Canada Dental Benefit?

Applications for the second benefit period are now being accepted. If you have multiple eligible children, you have the flexibility to apply for all of them concurrently or individually.

1. Current period

If you meet the eligibility criteria, you can currently submit applications for the period from – July 1, 2023, to June 30, 2024.

This marks the concluding period of the interim Canada Dental Benefit program. Additionally, you have the option to apply for the additional payment for either of the two benefit periods.

The application deadline for this period is Sunday, June 30, 2024, at 11:59 pm PT.

2. Apply with the CRA

The quickest method for receiving your payment is by applying online through CRA My Account. To ensure a smooth application process, please have the following information readily available –

• The name, address, and contact number of your child's dental care provider.
• The date of your child's dental appointment.
• Your employer's details, including the name, address, and contact number (if applicable).
• Similarly, your spouse or common-law partner's employer's information, including the name, address, and contact number (if applicable).

Apply online or through phone. Both these have an average of 5 – 10 days of payment processing time.

It's advisable to retain your receipts for a duration of six years in the event that the CRA requires verification of your eligibility. If your child's dental appointment is rescheduled within the same benefit period, there is no need to contact us.

Dental benefits in different provinces of Canada

Currently, the Canadian Dental Benefit provides tax-free assistance for basic dental care to individuals who meet the income criteria. While this program extends its coverage across all of Canada, it's worth noting that various provinces also offer their own individual programs aimed at helping defray the costs of dental care. However, it's important to understand that eligibility for these provincial programs is not universal, and you must undergo an application process for consideration.

You should be aware that these dental assistance programs cannot be stacked; if you qualify for one, you will not be eligible for the other. Let's explore the available options based on your place of residence.

1. British Columbia

In British Columbia (BC), access to basic dental coverage is limited to individuals receiving income or disability assistance. This coverage includes up to $1000 every 2 years for both the individual and their spouse. For children, it provides up to $2000 every 2 years and up to $1000 per year for dental procedures that necessitate general anesthesia in a hospital setting.

2. Alberta

In Alberta, the Alberta Health Services Dental Clinic provides dental care at a reduced cost for individuals who can demonstrate a financial need. To access this service, you must submit an application through Alberta Health Services.

3. Manitoba

Unfortunately, there are no programs in Manitoba that might help redeem the dental cost.

4. Saskatchewan

In Saskatchewan, individuals receiving income or disability assistance may be eligible for reduced or complimentary dental benefits under the Supplementary Health Benefits Program.

5. Ontario

Ontario provides the Seniors Dental Care Program, which includes coverage for basic dental services aimed at low-income seniors aged 65 and above. Additionally, they offer the Healthy Smiles Program designed for children who are either low income or enrolled in a qualifying Ontario program.

6. Nova Scotia

Nova Scotia offers the Children's Oral Health Program, which provides coverage for dental expenses for children aged 14 and under, provided they possess a valid MS Health Card. Additionally, specific dental surgeries for individuals of all age groups are eligible for coverage, subject to approval.

7. New Brunswick

New Brunswick offers the Health Services Dental Program, which extends coverage to individuals aged 19 and older. To qualify, individuals must not have private insurance coverage and should be clients of health services.

8. Prince Edward Island

Prince Edward Island (PEI) offers four distinct provincial dental programs, with the Provincial Dental Care Program being the one that addresses basic dental expenses. This particular program provides coverage for dental services to low-income families. To access these benefits, individuals must complete an application and await approval.

9. Quebec

In Quebec, specific dental services are provided at no cost to children under the age of 10 and individuals receiving financial assistance, provided they have a claim slip.

10. Yukon

Yukon provides a dental program designed for individuals without dental insurance benefits. Eligibility for this program is determined by comparing your annual net income to the size of your household. For instance, an individual with an income of $60,000 or less, or an individual with two children with an income of $90,000 or less, and so forth, may qualify for the program.

11. Northwest Territories

Specific communities in the Northwest Territories provide dental services for children within their school systems. Additionally, there exists an extended benefits program for seniors, which can be obtained by submitting an approved application. This program encompasses a range of services, including dental care.

12. Nunavut

In Nunavut, there exists a dental health program specifically designed for children in grade 7 and younger. This program is administered by a team of dental professionals, including dentists and dental hygienists. To ensure that your child receives these services, it is necessary to register them for the program.

Is Canada Dental Benefit only for children?

Presently, the dental benefit exclusively caters to covering dental costs for children aged 11 and below. However, this restriction is not anticipated to be permanent; it marks the initial phase of the program. It is expected that at some point in 2023, individuals under the age of 18, seniors, and those with disabilities will likely become eligible for the program. Moreover, by 2025, the program is intended to encompass all middle to low-income families who lack access to private dental insurance plans.

When can I expect my payment?

If you meet the eligibility criteria for the Canada Dental Benefit, the payment you receive will be determined by both your adjusted family net income and the number of children for whom you are seeking benefits.

Standard processing time –

• Direct deposit: If you have direct deposit set up with the CRA, it may take up to 5 business days for the funds to be processed.
• By mail: A cheque sent by mail is expected to arrive in approximately 10 business days.

Impact of Canada Dental Benefit on your taxes

The Canada Dental Benefit payment is exempt from taxation, and you are not required to declare it as income on your tax return. If you decide to include dental expenses as medical deductions for your child on line 33099, you can only include costs that have not been or will not be reimbursed. Consequently, you should subtract your Canada Dental Benefit payment from any dental expenses you claim as medical deductions for your child.