The Canada Child Benefit (CCB) was announced to take over from the UCCB Universal Child Care Benefit back in July 2016. Today the new Canada Child Care Benefit is a very important part in helping families raise their children. Also good news this past summer, starting July 2019 the Canada Child Benefit has been increased again.
What is the Canada Child Benefit?
The Canada Child Benefit (CCB) is a tax free monthly payment that is issued to families with children under 18 years old. This payment is given to families who are eligible to receive this benefit. In addition, these benefits are paid over a 12 month period starting from July to June of the next year. The government begins payment just after your tax return is processed. Therefore, it is very important to file on time so that you can receive your benefits starting that upcoming summer.
Who Qualify's for the Benefit?
The CRA determines what families are eligible for the benefit. Your children must be under the age of 18 years of age and live with you. In addition, you must be the primary care giver to your children. You also must be a Canadian Citizen, Permanent Resident, or Indian based on the Indian act.
How are the CCB payments calculated?
- Depends on how many children who live with you
- The age of each of your children
- Your adjusted family income
- Your child’s eligibility for child disability
The Canada Revenue Agency recalculates your payment after each filing of your tax return. This is based on your adjusted family net income.
How can I apply for Canada Child Benefits?
You can apply for the benefit in a number of 3 ways
Automated Benefits application can be made out when you complete your child's birth registration. Make sure to give consent on that form to allow Vital Statistics Agency to share the information with the CRA. Then send the registration to Vital Statistics Agency. You can also register with your CRA My Account As well, you can fill out RC66 and send in that form
What are the benefits of CCB?
This benefit is directed towards assistant living to help keep children with families out of poverty. According to Canada.ca, there were 278,000 fewer children living in poverty in 2017 than there were in 2015. This is a big change in our society as the payments have increased per year. In addition, low and middle income families will receive the higher payments, and those with higher incomes over $150,000 will receive less of a payment.
How much could we be looking at in terms of payments?
The average amount that most families receive is about $6,800 in Canada Child Benefit payments annually. Therefore, keep in mind that as of today these benefits are now Tax Free. The CRA calculates for an eligible child under 6 to be $6,639 per year ($553.25) per month. In addition, for a child aged 7 to 18 the amount could be $5,602 per year ($466.83) per month.
Accufile is here to help
Accufile has been helping clients for over 15 years. As a result, you may file with our online Tax Accountants for only $25 for a Personal Tax Return. Business Tax Returns are $75, and Corporate Tax Returns are $200. Therefore, take advantage of our Online Accountants today!