The Canadian government has implemented several programs to aid families and children, with one of the most beneficial being the Canada Child Benefit (CCB). As the cost of living continues to rise, it is no secret that raising a family can be an expensive endeavor. This financial burden can lead to mental stress and hardship as parents struggle to make ends meet and provide the essentials for their children. To ease this burden, the government has introduced the CCB program and various other initiatives throughout the years.
These programs offer a range of benefits, including direct deposits into parents’ bank accounts, federal tax credits, and GST/HST rebates. The Canada Child Benefit is a well-known example of such a program.
What is CCB?
The Canada Child Benefit (CCB) is a monthly payment designed to provide financial assistance to families with children under the age of 18. Although it has undergone several name changes, many still commonly refer to it as the “Child Tax Benefit” or “Baby Bonus.”
The government distributes these tax-free payments, which may also include the child disability benefit and other relevant provincial or territorial programs. Additionally, recipients of the CCB may also be eligible for benefits from various provincial and territorial programs, such as the Alberta Child and Family Benefit (ACFB), British Columbia Child Opportunity Benefit, New Brunswick Child Tax Benefit (NBCTB), Ontario Child Benefit, Newfoundland and Labrador Child Benefit, Northwest Territories Child Benefit, Nova Scotia Child Benefit, Nunavut Child Benefit, and Yukon Child Benefit.
Who qualifies for the Canada Child Benefit?
To determine your eligibility for the Canada Child Benefit (CCB), it is important to familiarize yourself with its qualifying criteria if you are a parent with a child under the age of 18.
To be eligible for the CCB, you must meet the following requirements:
- Reside with a child who is under 18 years of age.
- Be the child’s primary caregiver and responsible adult.
- Be a resident of Canada for tax purposes.
- Be a Canadian citizen, a long-term resident, a protected person under the Immigration and Refugee Protection Act, a temporary resident with a valid permit for the past 18 months and valid for the upcoming month, or a member of an Indigenous group as defined by the Indian Act
- Note that you will not receive CCB in the same month if you are also receiving Children’s Special Allowances (CSA) while caring for foster children.
How much will I receive from the Canada Child Benefit (CCB)?
If you are unsure about how much you will receive from the Canada Child Benefit, you can use a convenient calculator to determine your eligibility. The amount of CCB you receive is determined by factors such as your adjusted family net income, the number of children you have, their ages, and any disabilities they may have.
If parents are divorced or separated and share custody, they may request to split the child support payments (CCB) equally between them. Your CCB payment will be adjusted every July based on your adjusted family net income. Keep in mind that in addition to the CCB, several provinces and territories also offer assistance programs to families with children.
Also Read: CRA Verification: A Step-by-Step Guide
If your child is under six years old, you may be eligible for the CCB small child supplement, which provides up to $1,200 per child on a quarterly basis. However, this program has ended as of December 31, 2021. To receive retroactive payments, you must file and assess your 2019 and 2020 tax returns, as well as those of your spouse or common-law partner, by December 31, 2023.
If your child qualifies for the disability tax credit, they may also be eligible for the child disability benefit. Children who qualify for the child disability benefit from June 2023 to June 2024 may receive up to $2,985, which works out to $248.75 per month.
If you have a newborn child, there are three ways to apply for the Canada Child Benefit (CCB):
- Birth Registration
You can apply for the CCB when you register your child’s birth in your province or territory. This is often done at the hospital.
You will need to complete a birth registration package specific to your province or territory. Make sure to provide your social insurance number and give permission for the Canada Revenue Agency (CRA) to access the required information.
- Apply Online
You can easily apply for child benefits online through your CRA My Account. This method also supports online document submission and is less complicated.
To submit a CCB application, you need to complete Form RC66 and mail it to the nearest tax center.
Newcomers to Canada need to fill out Schedule RC66SCH and Form RC66 to apply for the Canada Child Benefit. If you have any questions about the application process, you can call the Canada Child Benefit hotline at 1-800-387-1193.
Also Read: Properly Deducting Moving Expenses: A Guide
Schedule of Payments for Child Disability Benefits
The Child Disability Benefit (CDB) is a payment given to families who are caring for a young child with a “severe and sustained disability in physical or mental functioning.”
For the period of July 2023 to June 2023, the maximum payment for CDB is $248.75 per month or $2,985 annually. However, if your family’s net annual income exceeds $71,060, the CDB payments are reduced.
Will the Canada Child Benefit Increase in 2024?
As inflation rates continue to rise globally, the Canada Child Benefit (CCB) is adjusted annually to reflect these changes. In July 2022, the CCB was raised to reflect the inflation rate of the previous 12 months.
For children under the age of 6, the maximum annual CCB payment has been increased to $6,997. The maximum annual payment for children aged 6 to 17 is currently $5,903 per child. These increases will remain in effect until June 2024, when the current payment cycle expires.
The Canada Child Benefit Young Child Supplement (CCBYS) was introduced in 2021, providing families with up to $1,200 for each child under the age of six. However, the program was short-lived and the last CCBYS payment was made in October 2022.
If you have children or plan to have them soon, it’s worth considering the CCB program. It’s easy to apply for and, as long as you continue to be eligible, you can expect to receive regular monthly payments. Additionally, using the CCB does not disqualify you from receiving other income-support benefits such as the GST/HST refund and disability tax credit. When raising a family, having access to extra funds is always helpful, so be sure to take advantage of the CCB and its provincial equivalents.
