The Canada Child Benefit or CCB aims to provide Canadian parents with financial assistance to raise their children. The amount is paid to low- to moderate-income families and there is an income threshold when the CCB stops completely. Again, we are talking about net family income here – including husband and wife.
Another thing to note is that CCB amounts are only paid into the mother’s account. So, in case you need to open a new mother bank, you may want to do so before applying for the benefits. The amount of CCB you will receive annually is derived from the tax returns you file each year and also includes other considerations, such as related provincial and territorial benefits and disability benefits owed to children.
Even though CCB payments remain fixed annually, it is important to know that: Canada child benefits are paid on a monthly basis and on a specific date each month. If you have opted for direct bank payment, you will automatically receive the CCB amount in your bank account without you having to do anything.
What is the Canada Child Benefit (CCB)?
The Canada Child Benefit (CCB) is an evolution of the Canada Child Tax Benefit. If you are the parent of a child under 19, calculations are made every July on your tax return for the previous year. Based on your declared income, your Canada Child Benefit is determined for the next fiscal year.
If your income exceeds a certain level, you will not benefit from this benefit. Please note, by income I mean both husband and wife or family income together.
For example – If you earn $50,000 and your wife earned $35,000 the previous year, your total income is $85,000 and this is the amount that will determine the amount of CCB payments you receive monthly.
Of course, there are various other factors, but income is the main one. This also highlights the importance of filing your taxes every year, even if you had absolutely no income the year before.
Generally, Canada Child Benefit payments are made by direct deposit into your bank account, no later than the 20th day of the month. The calculations are complex and depend on the age of the child(ren) and their number.
The Government of Canada website (canada.ca) provides a great calculator that allows you to estimate with reasonable accuracy what your CCB payments may be.
It also takes into account all the related benefits mentioned above, so it may be a better reference point than your personal tax accountant.
If your net family income is $30,000, you will be entitled to the maximum CCB + other benefits amounting to $8,271.00 per year or $680 for a child. (The example below is for the province – ON, similarly, you can go to the link here – complete the contact details, which will only take 5 minutes of your time to see the estimated amount.
Canada child benefits in 2022 and beyond
The Canadian government is constantly working to increase the amount of Canada Child Benefits paid to families, keeping in mind increasing inflation rates and rising costs of running families.
The tax-free CCB benefit came into effect on July 1, 2016. It quickly replaced the Universal Child Care Benefit (UCCB). In fiscal year 2019, child benefit amounts were $6,639 per child under the age of six and a maximum of $5,602 per child between the ages of six and seventeen.
In 2020, the maximum CCB per family is $6,765 – and that’s again per child under six, and the benefit amount drops further to $5,708 per child aged six to seventeen.
Every July, your benefits are recalculated based on your adjusted family net income from the previous year, indexed to inflation.
As I said, the numbers and payments increase every year to keep up with inflation and the costs of raising children. Thank you to the Canadian government for keeping this program alive, which saves thousands of families and especially children.
Please note that you will not receive a monthly payment if your total benefit amount for the year is less than $240. Instead, you will receive a lump sum payment with your July payment.
CCB payment dates in 2022
Below is a quick reference (month and date) for 2022 CCB payments:
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January 20, 2022
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February 18, 2022
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March 18, 2022
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April 20, 2022
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May 20, 2022
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June 20, 2022
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July 20, 2022
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August 19, 2022
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September 20, 2022
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October 20, 2022
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November 18, 2022
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December 13, 2022
CASE STUDY – Canada Child Benefits
To give you an idea of the difference in dynamics, I will show you how to produce this part of your tax return, with 2 fictitious families; one from the east coast, the other from the west.
Scenario 1: Family in Nova Scotia, with 2 children (aged 6 and 12)
Karen and her partner earned $20,000 and $30,000 in “net income” respectively last year.
Their 2 children were born in 2013 and 2007; both live in the house with their parents and neither of them qualifies as a disabled dependent. Let’s assume they live in Nova Scotia all year round.
Their UCCB from the previous year was $16,000, but they had to repay $100 due to an error that they are still disputing. Ignoring the Canada Workers Benefit (CWB), their total benefit payable this year would be:
1. Quarterly GST/HST credit – $221.50
2. Nova Scotia Quarterly Affordable Housing Tax Credit – $42.50
3. Monthly CCB – $900.14
4. Nova Scotia Monthly Child Benefit – $0
TOTAL BENEFIT FOR THE YEAR – $11,857.68
Scenario 2: Single-parent family in British Columbia, with 3 children (ages 2, 4 and 14)
Sharla earned a “net income” of $30,000 last year. His 3 children were born in 2017, 2015 and 2005; she shares custody with one of her ex-spouses (the 2 youngest) but not with the father of her eldest. The youngest is a disabled dependent.
She lives in British Columbia all year round. His UCCB the previous year was $20,000. We will once again ignore the Canada Workers Benefit (CWB) for the sake of simplicity.
Her total Canada child care benefit payable this year would be:
1. Quarterly GST/HST credit – $221.50
2. BC Quarterly Climate Action Tax Credit – $88.62
3. Monthly CCB – $1,020.08
4. Monthly benefit for disabled children – $118
5. British Columbia Monthly Early Childhood Tax Benefit – $55
TOTAL BENEFITS FOR THE YEAR – $15,557.44
Canada Child Benefits (CCB) – Benefits explained in more detail
Disability: An application for the Disability Tax Credit (DITC) can be initiated by parents or guardians of individuals. Once a doctor can verify (on the application form) an acceptable disability, the applicant can expect this calculation to be made. This also opens up the possibility of obtaining credits or benefits from other disability programs, including through the province or territory of residence.
Examples of disabilities include (in general terms) diabetes, dementia, kidney disease, amputations and paralysis. Typical candidates are spouses or common-law partners, parents and adults who care for their parents.
GST/HST Credit: This is assistance based on the amount of GST/HST paid in the previous year. It is generally available to Canadian residents (for income tax purposes) over the age of 19 who were a spouse/common-law partner and/or parent living with your child(ren) in the month prior to payment. Payments are made quarterly.
Canada Workers Benefit: This benefit replaces the working income tax benefit. The goal is to provide relief to families considered low-income. There are also strong links to disability benefits available at the federal, provincial and territorial levels.
The new revamped version aims to lift about 70,000 Canadians out of poverty. It is automatically calculated on your annual declaration, and therefore immediately applied, if a sum of money is owed under the program.
The Canada Child Benefit, with its links to other benefit programs, has a noble goal: to help families who would otherwise struggle to provide all the basic necessities to care for their loved ones. An overall benefit that shows how much the government(s) care about the well-being of all Canadians and residents of Canada.
When will I receive the CCB amount?
After applying for CCB, you will receive the first payment within 11 weeks of submitting your application.
Conclusion
In this article, I reviewed the Canada Child Benefit (CCB) and also mentioned some real-life examples along the way. We must all thank the Canadian Government to help families raising children meet the costs.
Although the cost of living in Canada is very high, CCB benefits are very useful to low-income families. Again, if you have any further questions, please let me know in the comments below. I will be more than happy to help you with the information.
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