All you need to know about Canada Child 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 5: 8 ways in which Canada’s New Affordability Plan helps make life cheaper for you

Chapter 6: All that you need to know about Canada Dental Benefit

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

It is true that if you want to give your child a good life, then it is an expensive thing to do. Right from taking care of daily requirements to education and other expenses, raising a child can take a considerable amount of your income. This is reason that every parent in Canada should know about Canada Child Benefit. It offers tax-free monthly payments to support Canadians raising children under 18 years old. To be eligible for the CCB, you need to fulfill certain requirements, including residing in Canada and living with the eligible child or children. If you meet these criteria, you may receive an annual benefit of up to $6,997 per child.

Let’s discuss all that you need to know about Canada Child Benefit and how you can reap its benefits in this chapter.

What is the Canada Child Benefit (CCB)?

The Canada Child Benefit (CCB) is a financial assistance program provided by the Government of Canada to help families with the cost of raising children. It is a tax-free monthly payment designed to support low and middle-income families in Canada. The CCB is intended to assist with the expenses associated with raising children, including food, clothing, and other essentials.

Key features of the Canada Child Benefit include –

• Income-Based

The amount of CCB a family receives is determined based on their income. Families with lower incomes receive higher benefits, while those with higher incomes receive reduced or no benefits.

• Universal

The CCB is available to most Canadian families with children under the age of 18, regardless of whether they are employed or not. However, eligibility is still income-dependent.

• Tax-Free

The CCB payments are tax-free, which means they are not considered taxable income.

• Monthly Payments

Payments are made on a monthly basis to eligible families, providing a steady source of financial support.

• Indexing

The CCB is indexed to inflation, which means that the benefit amounts may be adjusted annually to keep pace with rising costs of living.

• Additional Support

Families with children with disabilities may be eligible for additional assistance through the Child Disability Benefit.

To qualify for the Canada Child Benefit, you must file your income taxes each year, even if you have no income to report. The government uses your tax information to determine your eligibility and the amount of benefit you are entitled to receive. The CCB aims to reduce child poverty and ensure that families have the financial means to provide for their children's well-being.

Eligibility for CCB

To get the Canada Child Benefit, you need to fulfil all the following criteria –

1. You cohabit with a child below the age of 18.
2. You bear primary responsibility for the child's care and upbringing. (Learn more about who holds primary responsibility)
3. You are considered a tax-resident in Canada.
4. You or your spouse or your common-law partner should be any of the following -

• Canadian citizen
• Permanent resident
• Protected person
• Temporary resident who has resided in Canada for the past 18 months or
• Registered under the Indian Act

In case of death of a beneficiary parent –

If a beneficiary parent passes away, the payments will be redirected to the surviving spouse if they are still married. The benefit amount will then be adjusted based on the surviving spouse's income.

However, if someone other than the biological parents becomes responsible for the child, they should reach out to the Canada Revenue Agency (CRA) to notify them of the change in circumstances. This step allows the CRA to assess the situation, determine eligibility for the CCB, and provide clarity on the benefit status.

How to apply for CCB?

To apply for the Canada Child Benefit (CCB), you can follow these steps –

• Birth Registration: Ensure that you have registered the birth of your child with the appropriate provincial or territorial authority. The child must have a Social Insurance Number (SIN) as well. If your child is born in a Canadian hospital, birth registration and SIN application forms are often provided at the hospital.
• File Your Taxes: You must file your income tax return each year, even if you have no income to report. The Canada Revenue Agency (CRA) uses the information from your tax return to determine your eligibility for the CCB and to calculate the benefit amount. You can file your taxes online or by mail.
• Update Your Information: Make sure your personal and financial information is up-to-date with the CRA. This includes notifying them of any changes in your marital status, address, custody arrangements, or the number of children in your care.
• Automatic Enrollment: If you've already filed your taxes and the CRA determines that you're eligible for the CCB, you will be automatically enrolled, and payments will be sent to you monthly.
• New Application: If you haven't previously applied for the CCB or you're new to Canada, you can apply by filling out Form RC66, Canada Child Benefits Application. You can obtain this form from the CRA website or your local tax services office.
• Submit the Application: Once you've completed the application form, submit it to the CRA. You can do this by mail or online through the CRA's My Account portal.
• Wait for Assessment: After submitting your application, the CRA will review your information and assess your eligibility for the CCB. This process may take some time.
• Receive Payments: If you are eligible, you will start receiving CCB payments on a monthly basis. The payments are typically made on the 20th of each month, but this may vary.
• Monitor and Update: Keep an eye on your CCB payments and notify the CRA of any changes in your circumstances that could affect your eligibility or benefit amount.

It's essential to stay informed about the CCB program's requirements and deadlines, and to maintain accurate records of your financial and family information. If you have specific questions or need assistance with the application process, you can contact the CRA directly or seek help from a tax professional or social services agency.

When will I receive my CCB payments?

Your CCB benefit payments commence in July of the benefit year and continue to be disbursed over a span of 12 months, concluding in June of the subsequent year. Consistently reapplying and meeting the CCB eligibility criteria each year will likely ensure uninterrupted and continuous receipt of your benefit payments. This means that you can expect a regular stream of financial support throughout the year without any interruptions in your payments as long as you remain eligible. This stability in benefit payments aims to provide families with a reliable source of financial assistance to help cover the costs of raising their children.

CCB payment breakdown for the year 2022 –

• January 20^th
• February 18^th
• March 18^th
• April 20^th
• May 20^th
• June 20^th
• July 20^th
• August 19^th
• September 20^th
• October 20^th
• November 18^th
• December 13^th

What is the maximum amount that I can receive from CCB?

If you qualify for the CCB, you may potentially receive an annual payment of up to $6,997 per child. The actual amount you receive is determined by several factors, which include –

• The number of children residing in your household
• The ages of your children
• Your family's overall net income
• Eligibility of your child or children for the child disability benefit
• The combined net income of your family, which includes your net income and that of your spouse or common-law partner if applicable.

You can receive the maximum amount only if all your children are under 6 years old. For each child between the ages of 6 and 17, you can receive up to $5,903 per child annually.

Every July, the CRA reviews and recalculates your payment amount. Consequently, you may notice slight variations in your payments between June and July each year.

For those who have submitted a completed form T2201 Disability Tax Credit Certificate to the CRA, the maximum amount of the Child Disability Benefit (CDB) for 2022 is $2,985.

Frequently Asked Questions (FAQs)

1. Does my marital status matter when getting CCB?

Maintaining the accuracy of your marital status and promptly notifying the CRA of any changes is of utmost importance, as alterations to this information can potentially affect the amount of your benefit payments.

2. How is CCB calculated?

Each year, the CCB benefit amount is recalculated, taking into account the number of children under your care, their ages, your marital status, and your adjusted family net income (AFNI). Therefore, to ensure eligibility for the CCB, it's crucial to submit your tax return promptly, even if your income is minimal or non-existent. As your family's income increases, the Canada Child Benefit gradually decreases. Receiving a high income might disqualify you from receiving the CCB.

3. Where can I find my relevant information about CCB?

You can retrieve details regarding your CCB benefits and payments through the following methods –

• Access your information via your CRA My Account.
• Utilize the MyBenefits CRA app.
• Opt to receive email notifications that will keep you informed about your CCB benefits

4. Can I apply for CCB if my child lives with me only part-time?

The determination hinges on your child custody arrangement, as specified by the CRA –