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Child and Family Benefits

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Financial Planning -> Save Money

Government Benefits
-> Canada -> Child and family benefits

Child and Family Benefit Programs Provided by Governments

On July 1, 2016, the UCCB and CCTB were replaced with the new Canada Child Benefit (CCB) providing monthly tax-free benefits that are tied to income.  This was as per the Federal 2016 Budget.

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) and Child Disability Benefit (CDB)

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.  The CCB will provide an additional Child Disability Benefit (CDB) 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 eligible families.

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 $107,050.

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 receive.

See Canada Revenue Agency's (CRA) Canada Child Benefit for more information.

Universal Child Care Benefit (UCCB) - no longer in effect

 - 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.

The CCTB may include:

bulletNational child benefit (NCB)
bulletChild disability benefit (CDB) - tax-free benefit for families who care for a child under age 18 who is eligible for the disability amount.
bulletGST/HST credit
bulletProvincial and territorial programs

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.

For more information on these programs, see the CRA Child and Family Benefits web page.  Use the CRA Online Child and Family Benefits Calculator to determine your eligibility for these programs.

For more government benefits and resources, federal and provincial/territorial, see our Government Benefits page.

Revised: May 12, 2017

 

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