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The federal and provincial governments have benefit
programs which provide additional income for families, and for low-income
individuals. These programs include the following benefits.
Canada Child Benefit (CCB)
The new CCB, a tax-free monthly payment, will provide a maximum benefit of $6,400 per child under 6 and
$5,400 per child aged 6 through 17. The benefit is reduced when
adjusted family net income is over $30,000. There are different %
rates of reduction depending on the number of children, and when adjusted family
net income exceeds $65,000 the % rates of reduction change. Entitlement to
the CCB for the July 2016 to June 2017 benefit year is based on adjusted
family net income for the 2015 taxation year. See Canada
Child Benefit on the Budget 2016 website for more details. The CCB
will provide an additional amount of up to $2,730 per child
eligible for the disability tax credit. The reduction of this additional
amount based on income will be made in the same manner as the reduction to the
CCTB. The additional amount will be included in the CCB payments made to
For a family with 2 children under 6 and adjusted family net income of up to
$30,000, the CCB would be $12,800 per year. For adjusted family net income
of $65,000, the CCB is reduced from $12,800 (2 x $6,400) to $8,075.
The benefit is reduced to zero at adjusted family net income of approximately
Budget 2016 also proposed to allow a taxpayer to request retroactive payments
of the CCB, CCTB or UCCB, with a 10 year time limit, as in the Taxpayer
Relief Provisions, but in a slightly different manner. A retroactive
payment request will be able to be made in respect of a month on or before the
day that is 10 years after the beginning of that month, effective for requests
made after June 2016.
See the CCB
Calculator on the budget website to find out how much you will
- taxable monthly payment, expanded and increased retroactive to Jan 1,
2015, replaced with Canada Child Benefit effective July 1, 2016.
Canada Child Tax Benefit (CCTB) - no
longer in effect
The CCTB was a tax-free monthly payment made to eligible families to help them with the cost of raising children under age
18, and was replaced by the Canada Child Benefit (see above) effective July 1,
2016. See Canada child tax benefit
on the CRA website.
It appears that there was some confusion over the
elimination of the Child Tax
Credit for 2015, with some people thinking that the Canada Child Tax
Benefit was being eliminated. This was not the case. The Child Tax Credit
was a non-refundable
tax credit claimed on the tax return, and its elimination was proposed by the
October 2014 Federal Tax Update in conjunction with the increase in the UCCB.