Canadian child benefit is a program which helps the eligible families to raise their kids that are under 18. This program offers tax free income every month.
If you have applied for the Canadian child benefit, then you will receive the child tax benefit payment within the 8 weeks.
You should apply for the Canadian child benefit as soon as:
- Your child comes to the world.
- The custody of your child is given to you.
- After a temporary period of time,your kid came back to live with you.
- When your child is born, the registration of the child benefit fund is done at the hospital. You must make sure to give your consent and social security number so that it can be ensured that your child has been registered with the Canada Revenue Agency. In case you forget to give the consent, the registration will not be secured by the CRA.
- If you have not registered the you child at the time of birth at the hospital, then you can easily register through My Account. This will be your personal account for the Canadian Revenue agency`. The procedure is very simple. You just have to make your account, then login to your account. Give the proper information about your marital status, your contact information. You will be required to provide your child’s name, date of birth and the city where your kid was born. After giving these basic information you can easily submit your application and your kid will be registered by the Canadian Revenue Agency.
- There is also a third option for you to register your child for the benefit program. You have to fill the theRC66 form, Canada child benefit application and then sign it. And simply send this form through email to the tax center.
You may also be required to provide some additional documents or information under specific circumstances such as:
- If the parents share the custody of the kids, then the male parent is responsible for taking care of the child, then the wife must sign the document stating that the husband is responsible for the kids’ upbringing.
- If your kid is living with you for more than 11 months, then you are asked to provide your citizenship, passport, resident card. Also, you will be required to give the proof that you are mainly responsible for taking care of your child.
How are payments calculated
The child tax benefit calculator is given below. The payments of the Canadian child benefit are adjusted on every July to June of the following year. The payment is based on:
- The total number of kids in your custody.
- Your kids’ age.
- Marital status of the parent
- Parent’s adjusted family net income (AFNI), according to last year’s tax return
Maximum Canada child benefit
The maximum payment for each kid will be received by the parents if the adjusted family net income is under 31,120$.
For each child:
- Less than 6 years old: $6,639 per year ($553.25 per month)
- Between 6 to 17 years: $5,602 per year ($466.83 per month)
Payments are based on your adjusted family net income (AFNI)
The maximum benefit can be reduced on the basis of your adjusted family net income and the total number of kids. If the adjusted family net income is over 31,120$ the benefit will start to decrease gradually
You have 1 child in your care
- Your adjusted family net income is below $31,120
- Your adjusted family net income is above $31,120 but below $67,427
- Your adjusted family net income is above $67,426
For 2 children
- Your adjusted family net income is below $31,120
- Your adjusted family net income is above $31,120 but below $67,427
- Your adjusted family net income is above $67,426
For 3 children Your adjusted family net income is below $31,120
- Your adjusted family net income is above $31,120 but below $67,427
- Your adjusted family net income is above $67,426
For 4 children
- Your adjusted family net income is below $31,120
- Your adjusted family net income is above $31,120 but below $67,427
- Your adjusted family net income is above $67,426
Shared custody and your payments:
If the parents share the custody of the child they would get half of what they would have received if anyone of them had the full custody of their child. This would be measured according to their family net income.
If the parents have the shared custody of the child, the parents would not get the full amount from CRA and the amount would not be split using any percentages.
The parent will have the full amount if he/she has the full custody of the child. The amount will not be split between the both parents. And the parent having the full custody is only applicable to receive the amount.
The custody can be changed temporarily if necessary. For example, if the child lives permanently with one parent, but due to some genuine reason the child goes to live with the other parent for some time, then the parent can apply for the child benefit for that period of time.
Payments recalculation
The payment will be calculated again and it depends on the adjusted family net income from last year in every July.
e.g. payments from:
- July 2019 to June 2020: It will be based on your adjusted family net income from 2018
- July 2020 to June 2021: It will be based on your adjusted family net income from 2019
Related provincial and territorial benefits:
Some cities and provinces provide extra help with the cost. You can also get the additional help with the money in order to raise your child, if you belong to those provinces.
Children with a disability:
You can also receive some extra funds if your kid has some sort of disability and the kid has qualified for disability tax credit.
For each disable kid, you can receive $2,832 ($236 per month). This is for the period of July 2019 to June 2020.
When it comes to your children, nothing matters more than their health and welfare. That’s why Tohme Accounting will help you improve their lives in every way possible. Tohme Accounting is your way to help your child get all what’s needed fully covered. Contact our team, and let us handle the rest.