The Canada Child Benefit (CCB) is tax-free money the government gives to families to help with the cost of raising kids. Whether you’re a new parent or you’ve been at this for a while, there are probably some things about this benefit that you don’t know.
In this article, I will discuss 18 important facts about the Canada Child Benefit I think every parent should know.
It’s tax-free money
The Canada Child Benefit is money you don’t have to pay taxes on. This means when you get it, you get to keep all of it. You don’t need to report it as income when you do your taxes. It’s like getting a gift from the government to help with your kids.
Payments occur monthly
You don’t get the CCB in one big chunk. Instead, it comes every month, with payments usually arriving around the 20th of each month. This regular schedule helps families plan their budgets and know when they’ll have extra money for kids’ needs.
The amount depends on your income
How much CCB you get depends on how much money your family makes. Families that make less money get more CCB. As your income goes up, the amount of CCB goes down. To figure this out, the government looks at your family income from your tax return.
You need to file your taxes to get it
To get the CCB, you must do your taxes every year, even if you don’t owe any money. This is how the government knows how much money your family makes. If you don’t file your taxes, your CCB payments might stop. So it’s really important to do your taxes on time.
You can get it for kids up to 17
The CCB isn’t just for little kids. You can get it for your children until they turn 18. The amount you get is lower as your kids get older, but you can still get some help even when they’re teenagers.
Newborns can be registered automatically
When you have a new baby, you can sign up for the CCB right away. In some provinces, you can do this when you register your baby’s birth. This way, you start getting the money sooner.
The benefit amount changes in July
Every July, the amount of CCB you get might change. This is because July is the start of the new benefit year. The government looks at your income from the previous year and adjusts your payments. So, your July payment might be different from your June payment.
Shared custody affects payments
If you share custody of your kids with an ex-partner, it affects how the CCB is paid. In most cases, each parent gets half of the CCB they would get if they had full custody. This way, both parents get some help with the costs of raising the kids.
You can get an estimate online
If you want to know how much CCB you might get, you can use an online calculator. The government has a tool on their website where you can put in your information and get an estimate.
Both parents need to apply
If you’re married or living with your child’s other parent, both of you need to apply for the CCB. Even if only one parent gets the payments, both must fill out the forms. This is because the government looks at the whole family’s situation.
There’s extra help for kids with disabilities
If you have a child with a disability, you might get extra money on top of the regular CCB. This is called the Child Disability Benefit. You need to apply for this separately, and your child’s disability needs to be approved by the government. This extra money helps with the additional costs of caring for a child with a disability.
You can get CCB even if you have no income
Even if you don’t have a job or any other income, you can still get the CCB. In fact, families with very low or no income usually get the maximum amount.
Retroactive payments are possible
If you were eligible for the CCB but didn’t apply immediately, you might be able to get payments for the past months. You can usually get payments going back up to 11 months. This is called retroactive payment.
Non-residents usually can’t get CCB
To get the CCB, you need to live in Canada. If you move away from Canada for a long time, your payments might stop. There are some exceptions for people who are out of the country for work or school, but generally, you should be living in Canada to get the benefit.
CCB is adjusted for inflation
The maximum amount of CCB you can get goes up a little bit each year. This is to keep up with the rising cost of living. It’s called indexing. So even if your situation stays the same, you might get a bit more CCB each year to help with higher prices for things kids need.
You can choose how to get paid
You have options for how to get your CCB payments. Most people have the money deposited directly into their bank account. But if you prefer, you can get a cheque in the mail instead. Direct deposit is generally faster and more secure.
CCB can include provincial benefits
In some provinces, the CCB payment includes extra money from the provincial government. This means you might get more than just the federal CCB amount. For example, Ontario has the Ontario Child Benefit that’s paid together with the CCB. You don’t need to apply separately for these provincial benefits – they’re automatically included if you’re eligible.
CCB can be paid to non-parent caregivers
The CCB isn’t just for parents. If you’re taking care of a child who isn’t your own, you might still be able to get the benefit. This could apply to grandparents, aunts, uncles, or other relatives who are raising a child. It can even apply to foster parents in some cases.
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