What is Canada's FED Deposit in 2024?

When the government deposits money into your bank account, it’s filed under a series of different codes. One of them is “Canada Fed”, a deposit you may notice when you review your bank statement. As with any deposit, it’s important to know where it came from to determine if the money belongs to you and how it factors into your budget. The Canada Federal Deposit covers many different programs.

In this article, we detail everything you need to know about federal deposits, including payment dates, and eligibility requirements. 

What Is Canada Fed Deposit? 

Canada Fed deposit is a direct deposit from Canada Revenue Agency (CRA) on behalf of the federal government and gets handled separately from any provincial financial incentives. The Canadian government also issues out several direct deposits with unclear and often vague descriptions. The Canada Fed deposit is one of them.  It could be one or a combination of benefit payments made by the Government of Canada. Payments issued with the caption can be rebates, credits, or one of the benefits administered by CRA. Canada FED also sometimes refers to energy rebates from the Government of Canada.

The main objective of this Canada Fed deposit is to improve the purchasing power of low-medium-income Canadians through tax rebates or credits.

Consequently, eligible persons are not taxed upon receiving this deposit, except for the Canada Workers Benefit (CWB) deposit.

This is the major thing pro about the Canada Fed deposit. Unlike other government deposits, you have the flexibility to spend this payment without worrying about taxes.

Canada FED deposits are tax-free payments by the Canada Revenue Agency (CRA) that include:

• Canada Child Benefit (CCB)
• Goods and Services Tax/Harmonized Sales Tax (GST/HST)
• Canada Workers Benefit (CWB)

To receive these deposits, you must be eligible for one or more of the programs listed above. In most cases, you automatically apply when you file your annual income tax return. The amount for which you qualify changes yearly, and each individual program has unique criteria to participate. 

Government Programs Under The Canada Fed Deposit 

The Canada Fed Deposit is simply a term used in payroll software and bank statements. It represents the money deposited into your account from one or more of the programs. Some individuals qualify for all three programs, while others are only able to access certain benefits. 

It’s important to know which of these programs your qualify for so you know how to handle the money for tax purposes.

Canada Child Benefits (CCB)

CCB was designed to help families with the cost of raising their children. It is administered by CRA and provides a tax-free, monthly payment to eligible families with children below age 18. In addition, families may also receive related provincial benefits where applicable. 

You can apply for the CCB as soon as your child is born when registering their birth, through your CRA My Account, or by mail.

How much you receive is dependent on how many eligible kids you have and your adjusted family net income for the last tax year. CCB payments are reassessed each year based on your family net income and are indexed to inflation.

Goods and Services Tax/Harmonized Sales Tax (GST/HST)

Classed either as the goods and services tax or the harmonized sales tax credit, this payment is an equalization amount meant to ensure that tax is only paid once on goods and services. The difference between HST and GST is strictly based on your province of residence. Depending on your province/territory, you may benefit from other provincial/territorial programs under the GST/HST deposit.

The goods and services tax/harmonized sales tax (GST/HST) credit is a quarterly payment to individuals and families with low to modest income. That said, your family income, the number of registered children, and your previous tax return determine how much GST/HST credit you receive.

It is a tax-free payment that is designed to offset or compensate for some of the sales taxes that Canadians pay through GST and HST.

Your GST/HST credit is calculated using the previous year’s net income and paid to start in July till April of the following year.

For example, the GST credit that’ll start going out from July 2021 11is calculated using the net income reported on the 2020 income tax returns.

Canada Workers Benefit (CWB)

The Canada Workers Benefit is available to Canadians with medium-low-income. It differs from the other two Canada Fed credits significantly in that it is taxable income. This means that the amount you collect from the benefit adds to your tax bracket calculations. It also means that you owe taxes on the money the program deposits. To enroll in the CWB, you must file your income tax return. 

CWB Disability Supplement

If you are eligible for the Canada Workers Benefit, you may also be eligible for an additional disability supplement of up to $713 per year, if you:

Already receive the Disability Tax Credit

Have a minimum employment income of $1,150 (for most provinces)

Have filled out a Disability Tax Credit Certificate (Form T2201)

Who Receives the Canada Federal Payment?

As I mentioned earlier, the federal payment is administered by the CRA to eligible Canadians under the CCB, GST/HST, and CWB programs.

So to be eligible for the federal payment, an individual must meet the requirements of any of the above programs.

However, each of the above programs has different requirements, but it’s not surprising to qualify for all of them.

Here are the common requirements for the CCB, GST/HST, and CWB programs:

• Be a Canadian resident
• Reach the age of majority in your province/territory
• File your tax return
• Have a Canadian bank account

Though all three of the programs included in this deposit category are for those with medium-low-income, other factors also contribute to eligibility. These differ slightly for each program. To maximize your benefits, understanding how to qualify is important. 

Canada Child Benefits (CCB)

To be eligible for the Canada Child Benefit, the household must meet the following criteria:

• Taxpaying Canadian status
• Reside with a child younger than 18
• Be the primary caregiver of the child
• Either you or your partner must be either:
• Canadian citizen
• Permanent resident

When you file your income taxes for the year, you are automatically enrolled in this program. The government has centralized payments via direct deposit, so you can track these in your CRA portal. 

GST/HST Tax Credit Payments

Every taxpayer is technically eligible for this benefit by virtue of paying taxes. However, the actual amount of the benefit deposit varies based on the following criteria: 

• Marital status
• Age of dependents
• Number of dependents
• Household net income
• Custody changes

The Canada Revenue Agency calculates your eligibility regularly, so if you have a change in circumstances, inform them promptly to avoid payment issues. 

Canada Workers Benefit (CWB)

Because this benefit differs from the other two due to its taxable status, the criteria are unique. You must:

• Have gainful employment
• Be the age of majority (19)
• Live in Canada for the whole tax year

Those with spouses or common-law arrangements have an extra eligibility burden, where you must:

• Live together as of December 31
• Both qualify for the CWB

If the household supports dependents, they must:

• Be the children of the common-law partners or spouses
• Be younger than 19
• Not qualify for the CWB

DISQUALIFYING FACTORS:

• Full-time students for over 12 weeks
• You don’t live in or pay taxes in Canada
• You are incarcerated for 90 days or more during the year

Provided you meet the above requirements, and don’t have one of the disqualifying traits, then you can easily access this benefit. 

How Much Can You Get Through The Canada Fed Deposit?

Canada Child Benefits (CCB)

When a child is younger than six, you can get up to $6,765. This amount drops to a maximum of $5,708 per year until the child reaches the age of majority. There are other benefits in the same category as the CCB, including child disability benefits. Though it is technically a provincial/territorial benefit, the funding moves through the federal program and can show up as CCB or Fed. 

GST/HST Tax Credit Payments

As with the other programs, it’s designed for medium-low-income households. Accordingly, the exact amount you receive varies based on your earnings for the previous years., Your household size also gets taken into account. For the current benefit period (July 2023 – June 2024), the maximum GST/HST credit is up to:

• $456 for single individuals
• $598 if you are married or in a common-law relationship
• $157 per child under age 19

Canada Workers Benefit (CWB)

The program has two components, the basic amount and the disability payment.  Single individuals without children are eligible for as much as $24,573 if they live in any of these provinces or territories:

• British Columbia
• Manitoba
• Ontario
• Northwest Territories
• Yukon
• Nova Scotia 
• Prince Edward Island
• Newfoundland/Labrador
• New Brunswick

Conversely, if you live in one of the following areas, you have different eligibility: 

• Quebec: $23,904.11
• Alberta: $25,793
• Nunavut: $48,779

Depending on the amount you can receive, you will either get a quarterly payment or a lump sum amount.

What are the Canada Fed Deposit Payment Dates?

The amount of Canadian Fed deposit you get depends on how many programs you qualify for and your situation.

Since the Fed deposit comprises three programs, you should expect to receive each deposit on different dates.

However, GST/HST and CWB advance payments are made quarterly. But you can choose to receive a one lump-sum CWB payment during tax periods.

That said, the table below shows the different dates for CCB, GST/HST, and CWB advance payment for 2024:

What to Do After Receiving the Canada Fed Bank Deposit?

If you want to avoid trouble in the long run, you should ascertain the purpose of the Canada Fed bank deposit immediately after receiving it.

Occasionally, the federal government makes wrong deposits. Although it’s not your fault, you may put yourself in serious trouble if you fail to inform them about the wrong deposits.

Thus, to validate the purpose of the Fed deposit, log in to your CRA My Account. This is where you will find all notices concerning your eligible credits and payment dates.

However, you may go to the message area to check whether the CRA has sent you any message regarding the Fed deposit.

If you have not received any notice or message regarding the Fed deposit and are not qualified for either CCB, GST/HST, or CWB credit, reach out to the CRA immediately.

Moreover, you’re free to spend the Fed deposit if you meet the requirements for the CCB, GST/HST, or CWB credit and find a notification or a message about the deposit on your CRA My Account.

Other Types Of Government Bank Deposits

There are multiple government deposits; for ease of budget tracking for both the government and the recipient, there are different codes. If you qualify for the Fed deposit, you likely will encounter one of the following bank deposits as well:  

Canada RIT Deposit

Short for the Canada Refund Income Tax (Canada RIT) is issued by Revenue Canada to those who receive a tax return. It arrives somewhere between one to six weeks after you file your annual income tax return. If the government reassesses your tax return, you may receive this credit at a random time. Check your online portal to make sure you are entitled to it. Since the credit is tax-free, it neither adds to your tax bracket nor do you have to pay tax on it. 

Canada PRO Deposit

For residents of Alberta and Ontario, you can qualify for this benefit. It is income-based, where the amount is calculated when you file your taxes. If it doesn’t show up as a Canada Pro deposit, will likely show up as one of two statement codes:

• Ontario residents: Ontario Trillium Benefit (OTB)
• Alberta residents: Alberta Child and Family Benefit (ACFB)

Child Disability Benefit (CDB)

Families with children under age 18 years of age who are eligible for the CCB and Disability Tax Credit (DTC) may qualify for additional monthly Canada Fed payments.

The maximum CDB is paid per child when your adjusted family net income is $69,395 or less.

Final Thoughts on Canada Fed Payment

Now you have a clear picture of what the Canada Fed payment on your bank account entails.

Also, you know why it’s essential to confirm the purpose of the deposit on your CRA My Account before spending it.

Ensure that you’re really eligible for this deposit, else those few hundreds or thousands of dollars may put you into a costly problem. Getting an unexpected payment that’s rightfully yours? Wonderful. Not actually being entitled to that amount. Less so. The key takeaway about any type of deposit is that you must check that it is rightfully yours. When the money is in your account, it’s your responsibility. This could mean anything from getting an overpayment, spending it, then having to repay it to simply paying taxes on the benefit. 

There are plenty of government assistance programs available for Canadians to get financial support. As long as you qualify, most of the application comes when you file your taxes. Provided you are prudent about record-keeping and tax savings, you can use these Canada Fed deposits to strengthen your finances. Furthermore, other federal government deposits such as Canada RIT and Canada Pro can add up to building your long-term financial security.

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If you have more questions about the Canada Fed deposit, give a call to CRA at 1800-959-8281. For other information, contact the Filing Taxes team of professional accountants today. 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.