9 Tax Credits All Canadian Families Should Know About

There's a lot to think about when you have a family—like juggling everyone's schedules, making dinner on time, honouring family commitments, and ensuring there's some fun downtime left over. However, on top of the rewarding aspects, having a family can also bring financial challenges. To help you navigate costs and make the most of your tax benefits, there are essential tax credits and deductions about available to Canadian families you should know about.

Keep reading to learn more about federal payments like the child tax benefit and the Canada Workers Benefit, as well as how to maximize your savings and ensure you’re getting the financial support you deserve.

1. The Canada Child Benefit (CCB)

The Canada Child Benefit (CCB) can help when you're starting a family. Here's everything you need to know about how the CCB works, including payment schedules, and ways to ensure you receive the full benefit.

What is the CCB?

The CCB is a tax-free monthly payment designed to help families with the cost of raising children under 18. If you or your spouse or common-law partner want to begin or continue receiving credits and benefits, you need to file your taxes annually, because the amount of money you receive is based on your previous year’s income tax return.

When are child benefits payments made?

Payments for the CCB are made monthly and recalculated every July based on your previous year’s income. For example, if you had a baby or adopted a child in 2023, your CCB payments for the 2024-2025 benefit year would begin in July 2024, based on your 2023 income (assuming you’ve filed your 2023 tax return and updated your dependant information).

Payments are issued on the 20th of each month, unless the 20th falls on a weekend or a holiday then the payments are issued on the Friday before. For example October 20th is a Sunday, so the payment will be made on Friday, October 18th instead.

How is the CCB calculated?

The amount you receive depends on several factors, including your family income and the number of children you have. The calculation considers your adjusted family net income (AFNI). The CCB payments are adjusted annually to reflect your current income.

For children under 6, families can receive up to $648.91 per month. For children 6-17 you could receive up to $547.50 per month. Try this calculator provided by the Canada Revenue Agency (CRA) to estimate your CCB.

Does the CRA issue retroactive payments for the Child Tax Benefit?

Yes, the CRA will issue retroactive payments if there are any delays in processing or if adjustments are needed. This ensures you receive the full amount of CCB you’re entitled to.

Quebec family allowance

In addition to the CCB, families in Quebec may be eligible for the Family Allowance (Allocation Famille), which provides additional support for parents raising children. Like the CCB, the Family Allowance is determined based on your children's ages and your income.

2. Child care expense deductions

If you have child care expenses in order to work, run a business, or study, you can claim these costs as deductions on Line 21400 of your tax return. This includes payments made to nannies, babysitters, nursery schools, and daycare centres.

Here are the amounts you can claim:

• For children under 7 years up to $8,000.
• For children aged 7 to 15 years up to $5,000.
• If your child is eligible for the Disability Tax Credit (DTC) up to $11,000.

Make sure you keep receipts from your child care provider, as you’ll need these to claim your deductions.

3. The Child Disability Benefit (CDB)

Families with children who have disabilities who are eligible for the DTC, they can receive extra support through the Child Disability Benefit, which is a top-up added to your regular CCB payments.

To qualify, have your child’s doctor or nurse practitioner complete the Disability Tax Credit Certificate (Form T2201) and submit it to the CRA. If approved, you’ll receive additional benefits for your child. Once the T2201 is submitted to the CRA, you will need to indicate your child has a disability when you file your tax return by checking a box on the return.

4. Adoption expense tax credit

If you’ve adopted a child, you can claim eligible adoption expenses in the year the adoption is finalized. If the adoption was finalized in 2024, claim the adoption expenses on your 2024 tax return.

Adoption expenses include fees paid to licensed adoption agencies, travel expenses, court costs, fees paid to foreign institutions, and document translation fees. The maximum you can claim is $18,210 federally and up to $10,000 in Quebec.

The adoption expense tax credit is equal to 50% of your eligible adoption expenses. The maximum amount of the expenses is $20,000 per child, for a maximum tax credit of $10,000 per child.

5. Medical Expense Tax Credit

Medical expenses can add up quickly, but many of these costs are tax deductible. Eligible expenses include hospital stays, prenatal care, and fertility treatments, just to name a few. See the CRA website for a complete list of eligible medical expenses.

For the medical expense tax credit, the total of your medical expenses needs to exceed $3% of your net income or $2635, whichever is less. There is also a refundable medical expense supplement for lower income earners, so although your total medical expenses may be less then the amount needed for the medical expense tax credit, in some circumstances, it may be beneficial to still enter them on your tax return.

6. Amount for an Eligible Dependant

Single parents supporting a dependant may be eligible to claim the eligible dependant amount. This can provide significant tax relief if you meet the requirements. To qualify, the dependant must live with you and meet specific relationship and age criteria.

For 2023, for eligible dependants under 18, the amount for an eligible dependant is $15,000 less the dependant's net income. Where the dependant is under 18, and infirm, an additional $2499 may be claimed on line 30500 for the caregiver amount.

Where the eligible dependant is over 18, the amount for the eligible dependant is $15,000, plus $2499 when the dependant is infirm, less the dependant's net income.

An additional $7999 may also be claimed for infirm eligible dependant's over 18 on line 30425.

7. Employment Insurance (EI) Maternity and Parental Benefits

The federal EI program provides maternity and parental benefits to help you take time off work to care for your new baby or newly adopted child. These benefits offer financial support while you’re on leave.

To apply, you need to have worked a certain number of insurable hours and meet other eligibility requirements. You can apply online through the Service Canada website. You could receive up to 55% of your earnings to a maximum of $668 per week.

8. Canada Workers Benefit (CWB)

The Canada Workers Benefit (CWB) is a refundable tax credit that provides relief for working families with lower incomes. To qualify, you must earn at least $3,000, be a resident of Canada, and be 19 years of age in the tax year you are claiming the benefit.

The basic benefit amount is $1,518 for single parents and $2,616 for families. This amount is reduced if your net income exceeds $24,975 for single individuals or $28,494 for families.

9. Goods and Services Tax/Harmonized Sales Tax credits

The GST/HST credit is a tax-free quarterly payment that helps families with lower incomes offset the cost of the GST or HST they pay when they purchase goods and services. Payments are re-evaluated annually based on your tax return.

To receive this credit, you and your spouse or common-law partner must file your tax returns annually.

The GST/HST credit is paid quarterly, with payments typically issued on the following dates in 2024:

• January 5, 2024
• April 5, 2024
• July 5, 2024
• October 4, 2024

These dates may vary slightly depending on weekends or holidays.

Maximize your family's tax savings today

Many of the benefits and credits available to families are automatically applied when you file your tax return. You can also apply for benefits like the CCB when you register the birth or adoption of your child.

Most hospitals and adoption agencies will provide you with the forms you need. This simplifies the process and ensures you don’t miss out on any benefits. You can also apply online through your CRA My Account.

Being aware of the tax credits and deductions available to your family can make a big difference in managing the costs of raising children. TurboTax is here to help you maximize your tax savings and ensure you’re getting all the benefits you deserve.

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