The Canada Child Tax Benefit, or CCTB, is a government program that helps families who have a financial need with childcare costs.
It’s a tax-free benefit for families, and it’s paid on a monthly basis. The main criteria for eligibility is that children have to be under 18 years of age.
Three things can go into the CCTB:
- National Child Benefit Supplement;
- Child Disability Benefit;
- Provincial and territorial child benefits programs that apply.
National Child Benefit Supplement
This is a benefit that has been created by the federal and provincial/territorial governments. This is done to reduce child poverty in Canada.
Child Disability Benefit
If you have a disabled child then you could be eligible for this benefit. A doctor or medical practitioner has to fill out and certify the Disability Tax Credit Certificate form. The certificate has to show that the child has a serious lengthy impairment in either mental or physical function.
Provincial and territorial child benefits programs that apply
Every province and territory has their own benefits program from which you could receive benefits and sets their own eligibility requirements, and the amounts that they pay out.
For example, Nunavut has the Nunavut child benefit (NUCB), which can see a family receive $27.50 per month per child in basic benefits, if eligible.
If a family earns more than $3,750, they may also get territorial worker’s supplement of up to:
- $22.91 per month for one child; and
- $29.16 per month for two or more children.
Who determines eligibility?
The Canada Revenue Agency (CRA) determines eligibility by taking information from your income tax and benefit return to calculate how much of the CCTB benefit you will receive.
As a result of CRA using your tax information to determine eligibility you have to file your yearly taxes before the tax deadline. Should you fail to file your taxes, you may not receive the CCTB benefit.
Am I eligible for the benefit?
In order to get the CCTB benefits, you must fit all of the following criteria:
- You must be primarily responsible for the care and upbringing of the child;
- You must live with the child, and the child must be under 18 years of age;
- You must be a resident of Canada for tax purposes;
- You or your spouse or common-law partner must be:
- a Canadian citizen;
- a permanent resident;
- a protected person;
- a temporary resident who has lived in Canada for the previous 18 months, and who has a valid permit in the 19th month.
When should you apply?
As soon as possible after the following events have happened:
- Once your child is born;
- When the child begins to live with you;
- When you or your husband/wife or common-law spouse is eligible.
Who is eligible to apply?
The person who has primary caretaking responsibility for the child or children should apply for the benefit.
How do you determine who has primary caretaking responsibility?
The following will help determine if you are the primary caretaker of the child or children. If you:
- Are the one responsible for taking care of the child’s health;
- Oversee the child’s well-being, activities and needs on a daily basis;
- Make sure the child is looked after when you are somewhere else.
If you have questions whether you are eligible for child tax benefits, or you have other issues around child tax benefits, contact the appropriate government department, or consult an accountant or lawyer.
Canada Child Tax Benefit
What is the Canada Child Tax Benefit