The Child Disability Benefit (CDB) is a tax-free monthly payment made to families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.
To get the child disability benefit:
- You must be eligible for the Canada child benefit
- Your child must be eligible for the disability tax credit
Please note: If you are already getting the Canada Child Benefit (CCB) for your child who is eligible for the Disability Tax Credit (DTC), you do not need to apply for the CDB, because you will get it automatically.
Disability Tax Credit
A child is eligible for the disability tax credit when a medical practitioner certifies, on Form T2201, Disability Tax Credit Certificate, that the child has a severe and prolonged impairment in physical or mental functions, and the Canada Revenue Agency (CRA) approves the form.
How much you can expect to receive?
Your child disability benefit payments are calculated from July of one year to June of the next year using the following information:
- number of eligible children
- adjusted family net income
- marital status
For the period of July 2020 to June 2021, you could get up to $2,886 ($240.50 per month) for each child who is eligible for the disability tax credit.
The benefit starts being reduced when the adjusted family net income is more than $68,708. The reduction is calculated as follows:
For families with one child eligible for the benefit, the reduction is 3.2% of the amount of adjusted family net income over $68,708.
For families with two or more children eligible for the benefit, the reduction is 5.7% of the amount of adjusted family net income.
If this is the first time you’re getting the CDB, the CRA will automatically calculate your payments for the current and two previous benefit years and to continue receiving the CDB, you must remain eligible for the CCB and your child must also remain eligible for the DTC.
Important Note: To avoid delays or interruption in your benefit payments, you need to do your taxes every year, even if you had no income at all or your income is tax exempt. If you have a spouse or common-law partner, they also need to do their taxes every year. The CRA uses the information from your income tax and benefit return to calculate your benefit and credit payments.
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Related Topics:
- Canada Disability Tax Credit
- What is the Canada Child Benefit (CCB)?
- Family Tax Deductions: What Can I Claim?
References & Resources
