Canada child tax benefit

Canada child tax benefit (CCTB) was a tax-free monthly payment to eligible families to help them with the costs of raising children under the age of 18, that began in 1989 and ended as of July 1, 2016. It may include the National Child Benefit Supplement (NCBS) for lower income families and the Child Disability Benefit (CDB) for families with disabled children.

If you were eligible for the months and years before July 1, 2016, the CRA will pay you:

• a lump-sum payment for the Canada child tax benefit
• a lump-sum payment for the universal child care benefit

Eligibility

In general the program was for Canadian residents who live with a child and are primarily responsible for their care.

Application

If you are the mother of a newborn, living in a participating province, you could apply for the CCTB using the Automated Benefits Application (ABA) service. Otherwise, the person who is primarily responsible for the care and upbringing of the child can apply online using Canada Revenue Agency's (CRA) My Account for Individuals or by using form RC66.

CRA offers direct deposit for benefits and credits so you can have your benefits directly deposited in any bank, trust company, credit union or other registered financial institution in Canada.

Calculation

You (and your spouse, if applicable) must file a tax return in order to have the benefit calculated. You should apply even if your income is too high, as the benefit is recalculated every year and the initial application for CCTB remains active in CRA's system. You can estimate your benefit amount by filling out a sample calculation sheet or by using tax software.

The following table shows examples of the monthly payments of combined CCTB and NCBS for the 2011 tax year. They are paid around the 20^th of the month from July 2012 to June 2013.

Family net income	1 child	2 children	3 children
$40,000	$144.60	$285.95	$433.94
$60,000	$88.26	$176.52	$301.77

The family net income is the combined amount from line 236 of your and your spouse's tax returns. Note that dividends will reduce your benefit using the grossed up amount as income. Registered Retirement Savings Plan contributions and child care expenses will increase your benefit as will all income deductions before line 236. You should take into account the effect on benefit payments when tax planning.

Related programs

Most provinces and territories also have a related program. These are all administered by the CRA except for Quebec.

Other considerations

CCTB eligibility is used to determine the number of low income years you can 'dropout' of your Canada Pension Plan calculation.

NCBS eligibility was used before July 1, 2017 to determine eligibility for the Canada Learning Bond.

Investment and interest income earned from from CCTB payments could be attributed to the child if handled properly.

Universal child care benefit

The universal child care benefit (UCCB) was a taxable benefit paid monthly, from July 2006 until July 1, 2016, to help eligible families provide child care for their children under six years of age. The UCCB originally provided families with a $100 monthly payment for each child under 6 years old. From July 1, 2015 to June 30, 2016, the UCCB provided families with a $160 monthly payment for each child under 6 years old and $60 monthly payment for each child between the ages of 6 and 17 years old.

You did not have to file an income tax and benefit return to get the UCCB. If one had applied for the CCTB, the UCCB would be automatically paid, even when family income was too high to qualify for the CCTB.

If you are entitled to the universal child care benefit, the CRA will issue an RC62, universal child care benefit statement by the end of February, on behalf of Employment and Social Development Canada.