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Understanding the Canada Child Benefit

Author: Dave Block

Canada Child Benefit - Clearline CPA

It’s September and I find myself transitioning out of full summer mode.

I have been spending some much needed quality time with my wife and our nearly-two-year-old daughter. With camping, parks, beaches, playgrounds, and swing-sets (sprinkled with some wine-touring and the odd round of golf), July and August came and went wonderfully fast.

If you have children under the age of 18, like me, you may have received a notice in the last few weeks with information about your recalculated Canada Child Benefit (“CCB”).

You may have noticed it has changed significantly over the past year.

 

Quick facts about the CCB:

  • This tax-free benefit is indexed for inflation and the cost of living. On July 20, 2019, the maximum benefit was increased to:
    • $6,639 per child under the age of six; 
    • $5,602 per child between six and 17.

 

  • The amount an eligible family receives is based on the personal income tax returns for you and your spouse from the previous year. 

 

  • The CCB gets reduced as your adjusted family net income rises over $31,120.

 

  • Benefits are paid over a 12-month period from July through June.

 

Here are two examples of what this can look like for a family:

  • A family with two children under age six and an adjusted family net income of $65,000 would receive a CCB of approximately $8,704. If one of those two children was over six, the CCB would be reduced to approximately $7,665.

 

  • Using the same facts above (two kids under age six), the CCB would go to $nil once your adjusted family net income is greater than approximately $214,500.

 

You can find more details about the CCB on CRA’s website here:

https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-we-calculate-your-ccb.html

To estimate your total benefit, try the CRA’s online calculator:

https://www.canada.ca/en/revenue-agency/services/child-family-benefits/child-family-benefits-calculator.html

If you have not received your benefit and think you are eligible, we encourage you to contact the Benefits Enquiries Line at 1-800-387-1193 or contact us to learn more.