- July 18, 2016
- Posted by: Harpreet
- Category: Tax Tips
Canada Child Benefit (CCB)
This week most parents with children under the age of 18 will start seeing the new Canada child benefit (CCB) cheques coming through. The CCB is a new, tax free monthly payment that will be received by eligible families.
Starting July 1, 2016, you will receive only one payment for CCB. If you have filed your 2015 personal tax return and were receiving the benefits previously, you do not need to do anything further. The CRA uses the info from your most recent tax return to calculate how much CCB payment you will get getting.
Important items to note:
– Previously, CCTB was not taxable but UCCB was a taxable benefit.
– The new CCB is not-taxable!
– The benefit is recalculated every July based on prior year’s income information.
– The amount of money you receive depends on two things:
• the number of children in your care; and
• your family net income
You can get up to:
• $6,400 per year ($533 per month) for each child under the age of 6
• $5,400 per year ($450 per month) for each child aged 6 to 17
• an additional $2,730 per year if your child qualifies for the disability amount
Families with less than $30,000 in family net income will receive the maximum benefit. Families with household income above $188,000 will not receive any payments.
As adjusted family net income increases, the benefit is gradually reduced until it reaches zero.
If you have any questions, don’t hesitate to contact us!