The New Canada Child Benefit

October 11, 2016

By Brad Smith

The Canada Child Benefit (the “CCB”) replaces what used to be known as the child tax benefit and universal child care benefit.  The good news is the CCB increases the amount of benefits received compared to the combination of the child tax benefit and universal child care benefit. Some highlights:

  • It is tax free
  • Started July 1, 2016
  • The CCB is $6,400 per year ($533.33 per month) for each eligible child under the age of six and $5,400 per year ($450.00 per month) for each eligible child aged 6 to 17
  • The CCB is based on income from the prior year.  Thus you and your spouse have to file your tax returns each year.
  • The Canada Revenue Agency (“CRA”) uses your family net income to calculate the CCB. This means the income of you and your spouse are included in the family income.
  • You should notify the Canada Revenue Agency if your marital status changes.  More importantly if you separate, your family income will be reduced and you may receive a higher CCB.  You should tell the CRA after you have been separated for 90 days.
  • If you marry, have a child or live common law for more than 12 months, your marital status has changed and you have an obligation to notify the Canada Revenue Agency by the end of the month following the change.
  • The CCB is reduced as your family income increases. The CCB is increased as your family income decreases.

The Ontario Child Benefit (OCB) may be an additional $113 per month for eligible families.  It is delivered with the CCB.

Please review the CRA web site for more information.  A CCB calculator will provide you with an estimate of the amount.