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On July 1, 2016, the taxable Universal Child Care Benefit (UCCB) and the
taxable Canada Child Tax
Benefit (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)
Income Tax Act s. 122.6 - 122.63
The CCB, a tax-free monthly payment, provides a maximum annual benefit,
The benefit is reduced when
adjusted family net income (AFNI) is over certain thresholds. There are different %
rates of reduction depending on the number of children, and when AFNI exceeds a
second threshold, the % rates of reduction change.
See Canada
Revenue Agency definitions for the meaning of Adjusted Family Net
Income. Note that CCB and CDB are not included in taxable income, so don't
have to be deducted to get to AFNI.
Entitlement to
the CCB for the July 2024 to June 2025 benefit year is based on AFNI for the
2023 taxation year.
The CCB
will provide an additional Child Disability Benefit (CDB) amount for each 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
CCB. The additional amount will be included in the CCB payments made to
eligible families.
*Indexation: As per the
Federal 2018 Budget, the Canada Child Benefit amounts were indexed annually starting July
2018. The indexation uses the same factor as is used to index the personal
income tax brackets.
Canada Child Benefit
% Reductions
#
of children
Reduction
%
Over Threshold
1
Over Threshold
2
1
7.0%
3.2%
2
13.5%
5.7%
3
19.0%
8.0%
4+
23.0%
9.5%
Note: For AFNI greater than $71,060, first the 7% reduction
applies (rounded to even $), then the 3.2% reduction.
Example, using above % reductions and the 2022 thresholds: For Jul 2022 to Jun 2023, AFNI of $80,000 with 1 child under 6:
- reduction = 7% x (71,060 - 32,797) + 3.2% x
(80,000 - 71,060) = $2,678 + $286.08 = $2,964.08.
Canada Child Benefit and
Child Disability Benefit Annual Amounts
Benefit Year
Starting July 1
Child under 6
Child 6 to 17
1st Reduction Threshold
2nd Reduction Threshold
Child Disability Benefit
2025
$7,997
$6,748
$37,487
$81,222
$3,411
2024
7,787
6,570
36,502
79,087
3,322
2023
7,437
6,275
34,863
75,537
3,173
2022
6,997
5,903
32,797
71,060
2,985
2021
6,833
5,765
32,028
69,395
2,915
2020
6,765
5,708
31,711
68,708
2,886
2019
6,639
5,602
31,120
67,426
2,832
2018
6,496
5,481
30,450
65,975
2,771
2017
6,400
5,400
30,000
65,000
2,730
2016
6,400
5,400
30,000
65,000
2,730
Shared-Custody Parents
Income Tax Act S. 122.6, 122.61 (1.1)
Legislative
proposals introduced in August 2019 changed the definition of
shared-custody parent to a parent who resides with the qualified dependant at
least 40% of the time. This measure was retroactive to payments
arising after June 2011.
Change in Marital Status
May Affect Child Disability Benefits
A change in marital status (married, common-law, widowed, divorced,
separated, single) of an individual receiving the CCB must be reported to CRA by
the end of the month after the change. If the amount of CCB changes as a
result, the change will be effective in the first month after the change in
marital status.
Retroactive Canada Child Benefit Requests
Income Tax Act s. 122.62(2)
Budget 2016 changes 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 can 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.
To apply for retroactive benefits, apply for the CCB through My Account or by
filing an RC66 form (link below).
The UCCB was a 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) - 2015 And Earlier
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.
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.
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