If you're preparing to welcome a little one this year, you might also be wondering about financial support for your growing family.
The Canada Child Benefit (CCB) is a federal tax credit program designed to help Canadian families with the costs of raising children.
By understanding the CCB and taking advantage of available resources, you can better prepare for the financial aspects of parenthood and provide a secure future for your child.
This guide will walk you through everything you need to know about the CCB for the 2024-2025 benefit year and answer any questions you may have.
What is the Canada Child Benefit?
The Canada Child Benefit is a monthly, tax-free payment provided by the Canada Revenue Agency (CRA) to eligible families with children under 18 years old. It's designed to help offset the everyday expenses of raising a child, offering some financial breathing room for parents.
How is the CCB calculated?
The amount you receive through the CCB depends on a few factors:
- The number of children in your care: The benefit amount increases with each additional child under 18.
- The age of your children: The CCB offers a slightly higher amount for children under six years old compared to those aged 6 to 17.
- Your marital status: This also includes specific child custody arrangements — each parent with shared custody receives half of what they would've gotten if they had full custody.
- Your adjusted family net income (AFNI): This is your total income minus certain deductions and credits, as reported on your previous year's tax return. The higher your AFNI, the lower the CCB payment you'll receive.
The CRA uses a set formula to determine your specific benefit amount based on these factors. Don't worry, you don't need to do any complicated calculations yourself!
Who qualifies for the CCB?
To be eligible for the CCB, you must meet the following criteria:
- You must be a resident of Canada for tax purposes.
- You must live with and be the primary caregiver for a child under 18.
- You or your spouse (or common-law partner) must be a Canadian citizen, permanent resident, protected person, eligible temporary resident, or an individual registered or entitled to be registered under the Indian Act.
How much will I get from the CCB?
Determining your exact CCB amount can be complex as it involves several factors. The CRA uses a formula to calculate the benefit based on your family's net income and how many children you have. While you can use online calculators or tax software to estimate your potential benefit, the final amount will be determined by the CRA when you file your income tax return.
For the 2024-2025 benefit year, the maximum CCB payment is:
- $648.91 per month for each child under six years old (totalling up to $7,787 annually)
- $547.50 per month for each child aged 6 to 17 years old (totalling up to $6,570 annually)
- An additional $276.83 per month for each child who is eligible for the disability tax credit (totalling up to $3,322 annually)
To get a more accurate estimate for your specific situation, you can use the online CCB calculator provided by the government to determine whether you qualify for the benefit and how much you could get in payments.
Is the CCB going up?
The CCB is indexed to inflation, meaning the benefit amount increases yearly to keep pace with the rising cost of living. For the 2024-2025 benefit year, the CCB was increased by 4.7% compared to the previous year. This is great news for expecting parents, as it provides additional support for your growing family!
How do I apply for the CCB?
You can apply for the CCB when you register the birth of your newborn with the province. Ensure you provide your consent and your social insurance number so the birth registration information can be shared with the CRA. Once it's been shared, you'll automatically be considered for the benefit.
If you didn't apply for the CCB when you registered the birth of your newborn, no need to worry. You can still apply online using your personal CRA account under the "Benefits and Credits" page or fill out the RC66 application form and mail it to your tax center. Please note that in some cases you may be required to provide additional documentation.
Eligible individuals should apply for the benefit as soon as any of the following situations happen:
- Your child is born
- A child starts to live with you (or returns to live with you after a temporary period)
- You get custody of a child
- You begin, end or change a shared custody arrangement
- You or your spouse (or common-law partner) start to meet the eligibility conditions
Additionally, once you've applied for the CCB, you'll automatically be considered for related provincial programs. You don't need to apply separately.
How will I receive my CCB payments?
Once you're enrolled in the CCB program, the CRA will usually deposit your monthly payments directly into your bank account, assuming you're registered for direct deposits through CRA's My Account platform. If you don't have a bank account, you can arrange to receive your payments by cheque.
Please note that in order to keep getting your CCB and related provincial and territorial payments, you must file your tax return on time every year, even if your income is tax-exempt or you have no income. If you don't file your tax return yearly, your payments will stop.
What are the CCB payment dates for 2024?
Here are the expected payment dates for the CCB for the remainder of 2024:
- September 20, 2024
- October 18, 2024
- November 20, 2024
- December 13, 2024
However, if your total benefit amount for the year is less than $240, you'll receive one lump sum payment in July rather than monthly deposits.
You can visit your online CRA account to track your payments or sign up to receive payment reminders about a week before they're due. The CRA says you should wait five working days before contacting them if you have not received your CCB on the expected date.
How can I prepare for the CCB?
Expecting parents can prepare for the CCB and set themselves up for success by doing the following things:
- Review your income: While it might seem counterintuitive, reducing your income in certain ways (e.g., through eligible deductions) could increase your CCB payment. However, consult with a tax professional before making any significant changes.
- Stay informed: Keep up to date with changes to the CCB program, as eligibility criteria and benefit amounts may fluctuate.
- Apply for benefits early: It's essential to apply for other government benefits, such as maternity and parental leave benefits, as soon as possible to ensure uninterrupted income during your leave.
- Plan for child care expenses: While not directly related to the CCB, child care costs can significantly impact your family budget. Be sure to research available child care options and potential subsidies in your area.
- Tax planning: Consult a tax professional to optimize your tax situation and maximize your family's financial well-being.
Remember: The CCB is just one piece of the financial puzzle when raising a child. It's essential to create a comprehensive financial plan that includes budgeting, saving and exploring other potential income sources or support programs. Congratulations on your upcoming arrival, and best wishes for a happy and healthy family!
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