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What is the Canada Child Benefit (CCB)

What is the Canada Child Benefit (CCB)

As of July 1st, 2016, the CCB replaced the Canada Child Tax Benefit (CCTB), the National Child Benefit Supplement (NCBS) and the Universal Child Care Benefit (UCCB).

The Canada Child Benefit (CCB) is a tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age and is administered by the Canada Revenue Agency (CRA) who use information from your personal (T1) income tax and benefit return to calculate how much your CCB payments will be.

To get the CCB, you have to be a Canadian resident for tax purposes (Not the same as residency for immigration purposes) and you have to file your return every year, even if you did not have income in the year. If you have a spouse or common-law partner, they also have to file a return every year.

CCB Benefits are paid over a 12-month period from July of one year to June of the next year and the benefit payments are recalculated every July by the CRA based on information from you and your spouse’s (if applicable) income tax and benefit returns from the previous year.

If any of your information changes during the year, the CRA will recalculate your benefit the month after the change occurs.

Calculation information

CCB payments are calculated using the following information:

  • the number of children who live with you
  • the ages of your children
  • your adjusted family net income
  • your child’s eligibility for the child disability benefit

The CRA recalculates your payment every July based on your adjusted family net income from the previous year.  Your net income is the amount from line 236 of your T1, and your family net income is your net income plus the net income of your spouse or common-law partner, if you have one.

The CRA “adjusts” your family net income so that they don’t count any Universal Child Care Benefit (UCCB) and Registered Disability Savings Plan (RDSP) payments you receive, however, if you have to repay any UCCB and RDSP amounts, they will include them as part of your adjusted family net income.

Your marital status affects how the CRA calculates your benefits, so if your marital status changes, you need to tell them before the end of the month after the month your status changed.

Basic benefit for July 2018 to June 2019

CRA calculates the Canada Child Benefit (CCB) as follows:
• $6,496 per year ($541.33 per month) for each eligible child under the age of six
• $5,481 per year ($456.75 per month) for each eligible child aged 6 to 17

CRA reduces the amount of CCB you get when your adjusted family net income (AFNI) is over $30,450.

The reduction is calculated as follows:

  • Families with one eligible child: the reduction is 7% of the amount of AFNI between $30,450 and $65,976, plus 3.2% of the amount of AFNI over $65,976
  • Families with two eligible children: the reduction is 13.5% of the amount of AFNI between $30,450 and $65,976, plus 5.7% of the amount of AFNI over $65,976
  • Families with three eligible children: the reduction is 19% of the amount of AFNI between $30,450 and $65,976, plus 8% of the amount of AFNI over $65,976
  • Families with four or more eligible children: the reduction is 23% of the amount of AFNI between $30,450 and $65,976, plus 9.5% of the amount of AFNI over $65,976

Amending Returns

If you have not filed your taxes up-to-date, and were eligible for CCB prior to July 1, 2016, the CRA will pay you:

  • a lump-sum payment for the CCTB
  • a lump-sum payment for the UCCB

 

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