CANADA CHILD TAX BENEFIT: Explained

Newly expecting, experienced parent or just curious– you may have questions about the Canada Child Tax Benefit (CCTB).  First things first, just what is the benefit and who does it affect? Canada Revenue Agency (CRA) defines the Canada Child Tax Benefit as “a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18.” The CCTB can also include any Child Disability Benefit (CDB) and National Child Benefit Supplement (NCBS) amounts owed to the eligible family.

 

AM I ELIGIBLE TO APPLY FOR THE CANADA CHILD TAX BENEFIT (CCTB)?

Directly from CRA’s Frequently Asked Questions–

“To be eligible, you must meet all the following conditions:

  • You must live with the child, and the child must be under the age of 18;
  • You must be primarily responsible for the care and upbringing of the child;
  • You must be a resident of Canada; and
  • You or your spouse or common-law partner must be a Canadian citizen, a permanent resident, a protected person, or a temporary resident who has lived in Canada for the previous 18 months, and who has a valid permit in the 19th month.”

*There are exceptions to these conditions– for more information, refer to the CRA’s regulations of contact your Liu & Associates professional.

 

WHEN SHOULD I APPLY FOR THE CCTB?

Directly from CRA’s Frequently Asked Questions–

“Generally, you should apply for the CCTB as soon as possible after

  • Your child is born
  • A child starts to live with you; or
  • You and your spouse or common-law partner meet the eligibility conditions.

You should not delay applying as your application is considered late if it includes a period that started more than 11 months ago.”

*Late applications are subject to other requirements for approval– for more information, refer to the CRA’s regulations of contact your Liu & Associates professional.

 

HOW DO I APPLY FOR THE CCTB?

You or your accountant should fill out the required forms for application and submit them to CRA. Once submitted to your regional tax services centre, CRA attempts to respond to all applications within three months with a Canada Child Tax Benefit Notice. Incomplete applications or missing documents can delay your approval, so follow CRA regulations to the letter– or take the pressure off and have an accounting professional at Liu & Associates handle your finances and complicated family accounting.