Canada Child Tax Benefit

By Victoria E. Turnbull

Canada Child Tax Benefit

The Canada Child Tax Benefit (CCTB) is a non-taxable monthly payment that aims to help families with the rising costs of raising children under 18 years of age. To be eligible for this benefit, all the following conditions must be met by the individual applying for the benefit:

• Must live with the child, who is under the age of 18
• Must be the primary care giver, and responsible for the upbringing of the child
• Must be a resident of Canada
• Must be (or their spouse/common-law partner must be) a Canadian citizen, a permanent resident, a protected person, or a temporary resident for the previous 18 months who still holds a valid permit

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There are many intricacies in regards to the Canada Child Tax Benefit, including other benefits and tax credits that you could be eligible for. To ensure that you are claiming all your benefits, tax credits, and to ensure that your tax refunds are maximized, speak with our experts today!

One should apply for the Canada Child Tax Benefit as soon as possible, such as after the birth of the child, after the child begins to live with the individual applying for the benefit, or if ones eligibility for the CCTB changes to become eligible.  It’s important to apply quickly, as any application that is delayed more than 11 months from the period in which the individual is eligible for the benefit, will need to provide the following 2-sided photocopies of documentation for the period in question including:

• Proof of Canadian Citizenship or other immigration status
• Proof showing residency in Canada during the 11 month period in question (lease agreements, utility bills, etc)
• Proof of birth for each child
• Proof showing the applicant is the primary care giver and responsible for the upbringing of the child.

To apply for the CCTB there is an automated benefit application service, or apply online through the CRA “My Account”. http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html

A common question that we see is “How much will the Canada Child Tax Benefit give me?”. The answer to that is ‘it depends’, as the amount given is ‘adjusted’ based off of a number of factors, including family net income. The amount that is given to a family is adjusted to ensure that low and modest income families are given a maximum benefit, excluding a universal child care benefit and registered disability savings plan.

For more information and to get started with the Automated Benefit Application provided by the CRA, visit their website at http://www.cra-arc.gc.ca/bnfts/tmtd-eng.html

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THIS ARTICLE deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other
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