Do you know why the federal government gives Canada Child Benefit (CCB) payments to parents? It is because kids and debt are both are 4-letter words and expensive to have.
For some parents, the costs that accompany the care and upbringing of children can strain their finances. From housing to education, clothing to food, parents struggle to pay bills. Some parents take out a personal loan because of the cost of braces or unforseen bills.
If you are a low-income earner or if you have a low credit score, the impact of adding kids to the budget is devastating.
That is why both the federal and provincial governments provide many programs to help reduce parents’ financial burden. Some programs put money directly into parents’ bank account on a regular basis, while others provide federal tax credits and GST/HST rebates.
One popular type of benefit program is the Canada Child Benefit (CCB).
What Is The Canada Child Benefit (CCB)?
The CCB is a tax-exempt benefit program available for eligible families with children under 18 years of age. The program’s goal is to help alleviate poverty by providing struggling parents with access to government-sponsored financial aid.
Eligibility Requirements For CCB Payments
To qualify for the CCB, you must be the primary caregiver for a child under 18 years of age and live with them and be a Canadian resident for tax purposes. Also, you or your spouse must be considered at least one of the following:
- A Canadian citizen
- A permanent resident
- A protected person
- A temporary resident who’s lived in Canada for a minimum of 18 months or has a valid permit
- An indigenous person (as defined under the Indian Act)
Check out these additional tax credits and benefits for parents.
How Much Can You Get Through The Canada Child Benefit?
If you have an adjusted net family income (AFNI) family income of $32,797, you should receive the maximum benefit.
For the tax year 2022, you’ll receive payment from July 2022 to June 2023. The maximum you can receive is $6,997 annually for each child under the age of 6 and up to $5,903 for each child between the age of 6 and 17. If you share custody of your children, you’ll get 50% of what you’d have received if you had full custody.
Maximum CCB Payments
|Per Year||Per Month|
|Children under the age of 6||$6,997 per child||$583.08 per child|
|Children between 6 and 17 years of age||$5,903 per year||$491.91 per child|
The government will calculate the monthly amount you qualify for based on your previous years’ tax return. You can use the Government of Canada website CCB calculator to get an idea of what monthly payment you can expect to receive.
The size of your CCB benefit is calculated using several factors, including:
- The number of children you have
- Your family’s adjusted net income (AFNI) for 2021
- Whether your child is eligible to receive the child disability benefit
- Your marital status
- Your residence and whether you qualify for provincial benefits
Check out how an RESP can help you financially prepare for your child’s future education costs.
How Income Affects Your Canada Child Benefit Payment?
Your family’s net income is a crucial factor that impacts the amount of money you are entitled to under the CCB program. If your family’s net income is under $32,797, you’ll receive the maximum payment. CCB benefits are clawed back based on your family net income and the number of children you have.
For example, if you have 2 children under the age of 6, the maximum you can receive is $6,997 per child, that’s $13,994 per year. However, let’s say you have a family net income of $95,000. Your benefit would be reduced by $5,166 + 5.7% of your income over the threshold ($71,060). That means you’d qualify for $7,162.5. Below is an illustration of the CCB payment calculations.
- Take you income and subtract it by the income threshold: $95,000 – $71,060 = $23,940 (income over threshold)
- Take the income over thershold and mutliple it by the reduction percentage: $23,940*5.7% = $1,364.58
- Add the fixed amount to your reduction: $1,364.58 + $5,166 = $6,530.58
- Minus the maximum benefit by your reduction amount = $13,994 – $6,530.58 = $7,463.42
CCB Payment Reductions Depending On Income Level And Number Of Children
|Number of children||Family net income over $32,797 and up to $71,060||Family net income over $71,060|
|1||7% of your income above the threshold||$2,678+ 3.2% of your income above the threshold|
|2||13.5% of your income above the threshold||$5,166 + 5.7% of your income above the threshold|
|3||19.0% of your income above the threshold||$7,270 + 8% of your income above the threshold|
|4 +||23.0% of your income above the threshold||$8,801 + 9.5% of your income above the threshold|
Need help paying for your child’s education? Check out these tax credits and deductions for students.
Canada Child Benefit Payment Dates
The CCB payment period starts in July and ends in June every year. Generally, you should receive your first payment 8 weeks after sending your online application and 11 weeks if you send it by mail. The CCB payments will be sent out to qualified applicants on the following dates:
|Canada Child Benefit (CCB) Payment Dates in 2023|
|January 20, 2023|
|February 20, 2023|
|March 20, 2023|
|April 20, 2023|
|May 19, 2023|
|June 20, 2023|
|July 20, 2023|
|August 18, 2023|
|September 20, 2023|
|October 20, 2023|
|November 20, 2023|
|December 13, 2023|
How Do You Apply For The Canada Child Benefit?
There are two ways to apply for the CCB: through birth registration or an application with the CRA.
The first method requires completing paperwork at the hospital or medical centre where your child was born. You can fill out and submit this information when you register the birth of your child. If you live in Ontario, British Columbia, or Quebec, you can complete the registration process online. Ensure you give your consent and provide all the necessary details to the Vital Statistics Agency so it can pass on your information to the CRA.
Are you a single parent? Check out these loans for single parents.
If you didn’t apply for the CCB upon your child’s birth, you can do so online through the CRA website. Simply log in to your personal CRA account, confirm your details, and provide the required information on your child, such as their name, date of birth, etc.
If you opt to apply by mail, you’ll have to fill out form RC66 and send it to a local tax center. You may also need to include additional documents with your application, depending on your circumstances:
- Child’s proof of birth – A valid proof of birth is needed for any child who has not received benefits from the CRA and was born outside of Canada or born in Canada and is at least one year old.
- Letter from the female parent – A signed letter from the female parent confirming that the male parent is primarily responsible for the care and upbringing of the child, should this be the case. A letter is not required if the child is mainly under the care of the female parent.
- Miscellaneous documents for a period that began 11 months ago – If your child started living with you 11 months ago, you must provide documentation that confirms your citizenship status and prove that you reside in Canada. You’ll also need to provide proof of birth and that you’re the child’s primary caregiver.
Provincial Child Benefit Programs In Canada
- The Newfoundland And Labrador Child Benefit
- The Ontario Child Benefit (OCB)
- Nova Scotia Child Benefit (NSCB)
- Alberta Child and Family Benefit (ACFB) Payment Dates
What Is The Canada Child Benefit Young Child Supplement (CCBYCS)?
The CCBYCS is an extra tax-free payment that families received for expenses in 2021. If you want to claim retroactive payments, you and, if applicable, your common law partner/spouse must have an assessed 2019 and 2020 tax and benefit return. The last day to comply for any retroactive CCBYCS payment is December 23, 2023.
Canada Child Benefit Young Child Supplement (CCBYCS) Payment Amount
As mentioned, the maximum you can receive is $1,200 per child for the year. Depending on your income level you can expect to receive:
|Family Net Income||CCBYCS Payment Amount|
|$120,000 or less||$300 per child|
|Above $120,000||$150 per child|
The CCB is a program that you should investigate if you have children or plan to in the near future. It’s easy to apply for, and you can expect regular monthly payments for as long as you remain eligible. Also, utilizing the CCB won’t disqualify you from other income support benefits, such as the GST/HST rebate and disability tax credit. Having access to extra funds when raising a family is always helpful, so ensure you take advantage of the CCB as well as its provincial equivalents.
Canada Child Benefit (CCB) FAQs
Why have my CCB payments stopped?
- You didn’t file your tax return
- You didn’t respond to an inquiry from the CRA
- You failed to inform the CRA of a change in your bank account or address
- Your income increased substantially to where you don’t qualify for any CCB benefits
- You no longer meet the eligibility criteria for CCB benefits
- You had a change in your marital status
What’s the maximum CCB I can get?
Is the CCB taxable?
Are there any benefits if my child has a disability?
Are there other benefits I can receive for my child?
- British Columbia
- New Brunswick
- Nova Scotia
- Northwest Territories
- Newfoundland and Labrador
- Family Allowance payment
- Supplement for Handicapped Children Requiring Exceptional Care
- Supplement for the Purchase of School Supplies