The Canada child benefit (CCB) is one of the key government benefit programs available for families with children in Canada.
It’s no secret that raising a family is expensive. For some parents, the costs that accompany the care and upbringing of children can strain their finances, causing hardship and emotional stress as they struggle to pay bills and purchase everyday items.
Both federal and provincial governments have implemented many kinds of programs over the years to help reduce parents’ financial burden. Some programs put money directly into parents’ bank accounts regularly, while others provide federal tax credits and GST/HST rebates.
One popular type of benefit program is the Canada Child Benefit (CCB).
The CCB is a tax-exempt benefit program available for eligible families with children under 18 years of age. The program’s goal is to help alleviate poverty by providing struggling parents with access to government-sponsored financial aid. The CCB is aimed at eradicating child poverty in Canada, and it is unique in that the benefits received are not considered taxable income.
The CCB payment you get may also include provincial and territorial program benefits such as:
To qualify for the CCB, you must be the primary caregiver for a child under 18 years of age and live with them and be a Canadian resident for tax purposes. Also, you or your spouse must be considered at least one of the following:
You can apply for the CCB right after your child is born using one of three methods:
1. Through Birth Registration
Apply for the CCB when registering the birth of your child in your province or territory. This is often completed at the hospital.
Each province has its own birth registration package you must complete. Ensure you provide your social insurance number and consent so that relevant information can be shared with the CRA.
2. Apply Online
Navigate to “Apply for child benefits” once you’re logged into your account with the CRA. Confirm all your information, provide details for your kid, and submit any documents requested.
3. Through the Mail
CCB applications can be completed by filling out Form RC66 and mailing it to the nearest tax center.
New immigrants in Canada need to complete Schedule RC66SCH and Form RC66 to apply for Canada Child Benefits.
If you have questions regarding the application process, you can contact the CRA’s Canada child benefit phone number at 1-800-959-8281
For the tax year 2021, you’ll receive payment from July 2021 to June 2022. The maximum you can receive is $6,997 annually for each child under the age of 6 and up to $5,903 for each child between the ages of 6 and 17. If you share custody of your children, you’ll get 50% of what you’d have received if you had full custody.
Maximum CCB Payments
|Per Year||Per Month|
|Children under the age of 6||$7,437 per child||$619.75 per child|
|Children between 6 and 17 years of age||$6,275 per year||$522.9 per child|
The government will calculate the monthly amount you qualify for based on your previous years’ tax return. You can use the Government of Canada website CCB calculator to get an idea of what monthly payment you can expect to receive.
The size of your CCB benefit is calculated using several factors, including:
Your family’s net income is one of the most important things that determines how much money you can get from the CCB program. If your family’s net income is less than $32,028 per year, you will receive the maximum payment. CCB benefits are clawed back based on your family’s net income and the number of children you have.
For example, if you have two children under the age of 6, the maximum you can receive is $6,997 per child, that’s $13,994 per year. However, let’s say you have a family net income of $95,000. Your benefit would be reduced by $5,044 + 5.7% of your income over the threshold ($69,395). That means you’d qualify for $7,162.5. Below is an illustration of the CCB payment calculations.
CCB Payment Reductions Depending on Income Level and Number of Children
|Number of children||Family net income over $32,028 and up to $69,395||Family net income over $69,395|
|1||7% of your income above the threshold||$2,616 + 3.2% of your income above the threshold|
|2||13.5% of your income above the threshold||$5,044 + 5.7% of your income above the threshold|
|3||19.0% of your income above the threshold||$7,100 + 8% of your income above the threshold|
|4 +||23.0% of your income above the threshold||$8,594 + 9.5% of your income above the threshold|
Extra Temporary CCB Payments
COVID-19 has impacted the lives and income of many Canadians. In fact, according to a recent RBC study, women have been particularly impacted with more than 20,000 women leaving work while more than 68,000 men joined the labor market. Of the +20,000 women, approximately two-thirds were forced out to care for their children.
As a result, the Government of Canada has responded and is now offering Canadians with children additional support. Those eligible will receive an additional $600 or $1,200 to their Canada Child Benefit. You can get the $1,200 extra CCB payment if you’re annual family income is less than $120,000. You’ll receive the payment in $300 quarterly installments. Families with an annual income of more than $120,000 will get $600 extra which will be paid in quarterly installments as well ($150/quarter).
Basically, with the extra temporary CCB payments, families can now receive a maximum of $7,965 for each child under 6 or $6,908 for each child between 6 and 17.
The CCB payment period starts in July and ends in June every year. Generally, you should receive your first payment 8 weeks after sending your online application and 11 weeks if you send it by mail. The CCB payments will be sent out to qualified applicants on the following dates:
|Canada Child Benefit (CCB) Payment Dates 2023||Canada Child Benefit (CCB) Payment Dates 2023|
|January 20, 2023||January 19, 2023|
|February 20, 2023||February 20, 2023|
|March 20, 2023||March 20, 2023|
|April 20, 2023||April 19, 2023|
|May 19, 2023||May 17, 2023|
|June 20, 2023||June 20, 2023|
|July 20, 2023||July 19, 2023|
|August 18, 2023||August 20, 2023|
|September 20, 2023||September 20, 2023|
|October 20, 2023||October 18, 2023|
|November 20, 2023||November 20, 2023|
|December 13, 2023||December 19, 2023|
Please note that if your total yearly CCB payment is less than $240, you will not receive monthly payments. Instead, you’ll receive it in one lump sum in July.
The Canada Child Benefit is a tax-free payment which means it is not included in your taxable income. It is also not reported on your income and benefits tax return.
While CCB payments are tax-free, you should always file your tax return every year even if you have no income to report.
The CRA automatically assesses your eligibility for CCB by looking at your tax return for the previous year.
Canada Child Benefit Young Child Supplement (CCBYCS)
The CCB young child supplement (CCBYCS) provided up to four extra payments to families with children under age 6 in 2021.
To be eligible, you must have a child under age 6 in January, April, July, or October.
You get $150 to $300 per child based on your family net income in 2019 and 2020. The January and April 2021 payments were made as follows:
The payments in July and October 2021 were made as follows:
CCB Young Child Supplement Payment Dates
CCBYCS was paid separately from CCB with the payment dates on:
There is no indication from the government that supplemental CCB payments will continue in 2022.
The Child Disability Benefit (CDB) is paid to eligible families who have a child under 18 that suffers from a severe and prolonged impairment that limits them physically or mentally.
The maximum Canada Disability Benefit for the period of July 2021 to June 2022 is $242.91 per month or $2,915 per year.
The CDB is included in CCB payments for those who qualify and payment dates occur on the same dates as the CCB as follows:
While the CCB is administered and funded by the federal government, there are also child benefit programs at the provincial and territorial levels.
Some of these programs include:
Most of these programs are administered by CRA and combined with the monthly CCB payments as a single credit to beneficiaries.
One of the few exceptions is the Alberta Child and Family Benefit (ACFB). This is paid quarterly, and the ACFB payment dates for 2023 are:
The Alberta Child and Family Benefit (ACFB) was introduced in July 2020 to replace two separate programs: Alberta Child benefit and Alberta Family Employment Tax Credit.
For children under age 6, the current maximum monthly benefit is $569.41 per child. For children older than 6 through 17, the maximum monthly benefit is $480.41 per child. Families with a net income below $32,028 will receive the maximum benefit.
Yes, the CCB has increased to $6,833 and $5,765 per year for kids under 6 and those between 6 and 17 years respectively.
An additional CCB amount of up to $300 was provided to families in 2021 for 4 months. This increase has not been extended to 2022.
The maximum Child Disability benefit from July 2021 to June 2022 is $2,915 per year or $242.91 per month.
No, the Canada Child Benefit is a tax-free benefit and does not count towards your taxable income when you file your income tax return.
How much you receive is dependent on your family’s net income for the previous year, the age and number of your children, and your province of residence.
Child benefits stop when your child turns 18 or when your family’s net income exceeds the maximum threshold.
If the CRA pays you too much CCB, they will let you know how much was overpaid and the excess amount may be deducted from your future CCB payments, income tax refund, or GST/HST credit.
The CCB is a program that you should investigate if you have children or plan to in the near future. It’s easy to apply for, and you can expect regular monthly payments for as long as you remain eligible. Also, utilizing the CCB won’t disqualify you from other income support benefits, such as the GST/HST rebate and disability tax credit. Having access to extra funds when raising a family is always helpful, so ensure you take advantage of the CCB as well as its provincial equivalents.
In conclusion, if you have more concerns about the Canada Child Benefits don’t hesitate to contact the Filing Taxes team of professional accountants today at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.