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Tips and tricks for Canadian tax filers at every stage of life from UFile's tax expert Gerry Vittoratos



Important things to know about the new Canada Child Benefit (CCB)

by Gerry Vittoratos | Jul 25, 2016   Comments:

On July 20th, 2016, millions of Canadian families received their first Canada Child Benefit (CCB) payment. The CCB is a tax-free monthly payment from the government of Canada to eligible families with children under 18 years of age.

The new CCB is recalculated every July of the current year based on the income tax information for the previous year. As with the previous child benefit, the Universal Child Care Benefit (UCCB), in order to receive the CCB, the parents have to file a tax return for the previous year, even if they have no income. Spouses or common-law partner must also file their tax returns.

Unlike the UCCB, the new CCB is calculated based on the number of children under 18 AND the family income. This measure is intended to ensure that lower income Canadians receive more financial help in raising their kids.

Important things to know about the CCB:

  • You will not report the child benefit (CCB) received after June on your tax return.
  • The new CCB will vary from family to family based on income and the number of children in the family. The CRA will use your tax return to calculate your benefit.
  • Do you need to register a new addition to your family? Provide consent for your province to share your information with the CRA for the purposes of receiving the Canada Child Benefit, when you register your child.
  • As with the UCCB, you will receive your CCB around the 20th of the month.
  • The Government of Canada is switching to direct deposit for all payments. If you are already receiving your UCCB using direct deposit, this will not change with CCB. Otherwise, be sure to visit http://www.cra-arc.gc.ca/directdeposit/ for instructions on how to sign-up.
  • The CCB payment may include the child disability benefit and any related provincial and territorial programs.
  • With the beginning of the CCB, the Child Disability Benefit provides up to $2,730 per year ($227.50 per month) for each child who is eligible for the disability tax credit. This amount is adjusted downward for higher net income families. (approximately $65,000)
  • Finally, if you have not been receiving UCCB because you have not filed your tax returns in prior years, you should file them as soon as possible. Visit UFile.ca where you can prepare many up to 10 tax years.

The UCCB, which parents received monthly up until June 2016, is a taxable benefit. Keep in mind that you will need to include the amount of UCCB received from January to June, 2016 on your 2016 tax return.

Do you want to understand the calculation of your monthly CCB amount?  UFile provides a helpful estimate of your 2016 Canada Child Benefit as part of your 2015 return. Or visit http://www.cra-arc.gc.ca/bnfts/ccb/clcltyrccb-eng.html to take advantage of the CRA’s Child and family benefits calculator or calculation worksheet.

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