Beginning July 2016, the Liberal government combined the Canada Child Tax Benefit, National Child Benefit Supplement and the Universal Child Care Benefit into the Canada Child Benefit.
Under the new Canada Child Benefit, families with children under the age of 18 will be eligible for a maximum annual benefit of $6,400 ($533 per month) per child under the age of 6 and $5,400 ($450 per month) per child aged 6 to 17. Families with a disabled child will receive a further benefit of $2,730 per disabled child. The benefit is gradually reduced until it reaches zero as your family net income increases beyond $30,000. The monthly payment is tax-free.
If you received the Canada Child Tax Benefit or the Universal Child Care Benefit you do not need to apply to receive the Canada Child Benefit. However, you and your spouse/common law partner must file an income tax return every year to continue receiving the Canada Child Benefit.
If you were receiving direct deposit payments for the Universal Child Care Benefit, you will continue to receive direct deposits payments for the Child Care Benefit.
If you would like to get an estimate of what your Canada Child Benefit payment would be, click here.
To apply for the Canada Child Benefit, complete the Canada Child Benefit Application (RC66) form.
The key to maximizing the CCB lies in minimizing a household’s net income. Any deductions that lower your net income (the amount on line 236 of your federal tax return) will result in higher monthly benefit payments.
For example, people who don’t contribute the maximum to their registered retirement savings plans (RRSPs) miss out on more tax-free CCB income.
Claiming costs like child care, moving expenses or union dues lowers the taxable net income amount as well. Keep those receipts.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
Thanks to Johnny Kwong of KWB Chartered Accountants for providing this content.
Johnny Kwong, CPA
Johnny received his Bachelor of Commerce Degree in 2011, from Athabasca University. In April 2013, he joined the KWB team and began pursuing his CPA designation. He was officially admitted as a CPA member in December 2016 and continued working as a Senior Staff Accountant at KWB. In February 2019, Johnny was promoted to the role of Manager at KWB, and now continues to expand his knowledge and experience in a variety of areas.
In his personal life, Johnny is a proud father to two beautiful girls, who regularly surprise him with their own achievements. He and his wife are continuing to enjoy all the experiences of their parenting journey…except for the still persisting lack of sleep. In his minimal spare time, Johnny enjoys watching movies, going for long walks, and still attempts to find time to sneak in a date night here and there.
Johnny's Contact Information
Other Posts by Johnny
Registering For GST
Do you need to register for GST?
Some services are exempt from the GST/HST – that is, no GST/HST applies to them. This means that you do not charge the GST/HST on these services, and you are not entitled to claim input tax credits on property and services acquired to provide them. You cannot register for the GST/HST if
Heartbleed & CRA’s Deadline For 2013
As you may have heard, Canada Revenue Agency (CRA) extended the 2013 personal tax return deadline to May 5th, 2014.
This was due to a security issue, known as the Heartbleed bug vulnerability. This vulnerability affected how usernames and passwords were encrypted when logging into “secure” websites. Thus, allowing hackers the potential to steal private
Unreported T-slip income
Regardless of the reason, if you have unreported T-slip income of $500 or more from any T-slips in your current year tax return, don't wait for CRA to catch it.
If you have unreported t-slip income in your current year return and also unreported t-slip income in any of the three years prior, you are subject to a
Living Out Allowance
In certain situations, a company can pay and deduct a living out allowance and the employee does not have to report the allowance in their income.
In order for this to apply, the allowance needs to be reasonable. Additional criteria must be met as stated below for employees at a special work site and
Taxable Benefits For The Personal Use of Company Aircraft
A corporate aircraft that is owned or leased primarily for business purposes, but is used for personal purposes (i.e. flight to transport employees or shareholders to a vacation destination) will be considered a taxable benefit to that employee or shareholder.
The value of the benefit is the cost of a regular first class airfare
CRA Requirements for Keeping Financial Information
You are required by law to keep records if one or more of the following situations apply:
You operate a business in Canada
You have to file an income tax return (i.e. corporate or personal)
You have to file a GST return
You filed for a GST rebate
You have a trust
Supporting Documents for a Charitable Donation
When you make a charitable donation, one of the key benefits you receive is the donation tax credit on your tax return.
In order to be able to claim a charitable donation and get a credit, Canada Revenue Agency (CRA) requires that individuals keep supporting documents and proof of payment (i.e. cancelled cheques, pledge
Home Buyers Plan
The Home Buyers Plan (HBP) is a program that allows you to withdraw up to $25,000, per person from each of your RRSP accounts in a calendar year to buy, or build, a qualifying home.
To be eligible for the Home Buyers Plan, the following must be met:
You must be considered a first-time
What is the value of deferring my OAS benefits, sometimes also called OAS pension, to a future year?
There are several reasons why you might want to defer your OAS benefits, such as:
1) Based on current and future sources of income you may be able to keep thousands more.
2) You’re planning to work past 65
Changes to the Eligible Capital Property Rules Effective January 1, 2017
Eligible capital property (ECP) includes items such as goodwill, patents, trademarks, customer lists and other intangibles with no fixed lifespan.
As of January 1, 2017, the new rules for eligible capital property will come into effect and will have a significant impact on tax deferral opportunities for companies that dispose of eligible capital property.
Child Rearing Provision
If you left the work force or reduced your working hours to be the primary caregiver for your children, it will likely be to your benefit to apply for the CPP child rearing provision when applying for CPP benefits.
To apply for the CPP child rearing provision you would complete section 11A in the application