Canada child benefit

The Canada child benefit (CCB) is a tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age, starting in July 2016.

The Government of Canada introduced a new Canada Child Benefit to replace the following child benefits:

• The UCCB, the monthly child payments of $160 per child under six and $60 for kids between 6 and 17.
• Canada Child Tax Benefit (CCTB) (an additional income-tested family benefit).
• National Child Benefit Supplement (NCBS) (a supplement for low-income families).
• The Family Tax Cut — also known as "income-splitting for families" with children under 18, which significantly lowered the tax payable, up to $2,000, for families when one parent or guardian made significantly more than the other.
• Children's Fitness Tax Credit and Children's Arts Tax Credit. These deductions worth up to $150 and $75 per child, respectively, are being phased out — cut in half in 2016, then eliminated entirely for 2017 and beyond.

How much would I receive?

Use the Child and family benefits calculator to figure out how much you may get.

Choose which province you live in, input your family net income and the number of children you have under the age of 18.

Families with less than $30,000 in family net income (line 236) receive these maximum yearly benefits:

• $6,400 per year for each child under the age of 6
• $5,400 per year for each child aged 6 to 17
• An additional $2,730 per child eligible for the disability tax credit.

With a family net income higher than $30,000, benefits decrease.

Eligibility

To be eligible for the Canada child benefit (CCB), you must meet all of the following conditions:

• You must live with the child, and the child must be under 18 years of age.
• You must be primarily responsible for the care and upbringing of the child.
• You must be a resident of Canada for tax purposes.
• You or your spouse or common-law partner must be:
  • Canadian citizen
  • permanent resident
  • protected person
  • temporary resident who has lived in Canada for the previous 18 months, and who has a valid permit in the 19th month
  • an Indian within the meaning of the Indian Act

When should you apply?

Apply for the CCB as soon as possible after:

• your child is born
• a child starts to live with you
• you or your spouse or common-law partner meet the eligibility conditions

CCB payments can begin the month after you become eligible, as long as you are still eligible at the beginning of the current month.

You should apply even if:

• you share custody of your child
• your child is living with you for a determined temporary period of time
• your current family net income is too high to get the CCB (you might be eligible for other benefits)

Who should apply?

The individual who is primarily in charge of the care and upbringing of the child should apply for the CCB.

You are primarily responsible for the care and upbringing of the child if you:

• supervise the child’s daily activities and needs
• make sure the child’s medical needs are met
• arrange for child care when necessary

For CCB purposes, when a male and a female parent live together in the same household as the child, the female parent is usually considered to be primarily responsible for the child. In this situation, the female parent should apply. If the male parent is primarily responsible, he must attach a note to his application from the female parent. The note must state that he is primarily responsible for all of the children in the household.

If two parents of the same sex live together in the same household as the child, one parent should apply for the CCB for all of the children in the household.

How do you apply?

You can apply for the CCB in one of the following ways:

• Automated Benefits Application : The CRA will use the information from the child's birth registration to determine your eligibility for benefits and credits.
• My Account for Individuals
• Form RC66, Canada Child Benefits Application

If you use the Automated Benefits Application, do not apply any other way.

Maximizing benefits

The key to maximizing the CCB is to minimizing a household's family net income. Any deductions that lower the amount on line 236 of the federal tax return will result in higher monthly benefit payments.

For example, a RRSP deduction for the 2017 tax year will allow you to get an higher CCB amount, starting in July 2018. It is an additional consideration in the TFSAs versus RRSPs debate.

See also

• Canada child tax benefit (program prior to July 1, 2016)

External links

• Canada Revenue Agency, Canada child benefit - Overview
• Government of Canada, Canada Child Benefit
• Canada Revenue Agency, T4114 Canada Child Benefit and related provincial and territorial programs.