Tax Brief: Canada Child Benefit

The Government of Canada introduced the Canada Child Benefit (CCB), replacing existing federal child benefits. Effective July 2016, the CCB is a monthly payment paid to eligible families, helping them raise children under the age of 18.

The CCB program is:

• Simpler

• Tax free and

• More generous

How does one apply for the CCB payments?

No application required! All you need to do is make sure that you (and your spouse or common-law partner, if applicable) properly filed your annual tax returns. Even if you earned no income, you are required to file a tax return.

How are benefits paid?

Benefits are paid monthly and recalculated every July based on the information from your annual tax return from the prior year.

CCB payments are based on a number of various criteria including age of your children, number of children, annual income and whether there is eligibility for the Child Disability Benefit.

The Government of Canada has recalculated the CCB payments as follows:

• $6,400 per year ($533.33 per month) for children under the age of six

• $5,400 per year ($450.00 per month) for children between the ages of 6 to 17

Use the child and family benefits calculator linked below, to calculate the benefit you should expect to receive:

http://www.cra-arc.gc.ca/bnfts/clcltr/cfbc-eng.html

Have any questions? Contact Blumenfeld Woznica & Co. so that we can ensure that you receive the maximum payments under the CCB program.