The new Canada Child Benefit (CCB)

November 1, 2016

As of July 20, 2016, Canadian families can find out what the potential value of their monthly payments from the new CCB will be. Families with under $30,000 net income per year, will get approximately:

• $6,400 per child under the age of 6.
• $5,400 per child aged 6 through 17.
• Additionally $2,730 per child eligible for the disability tax credit.

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If you register for an online CRA account, you can look up the amount you may receive, basing the CCB on your previous year’s tax assessment. The CCB also replaces the Canada Child Tax Benefit; National Child Benefit; Children’s Fitness Tax Credit and Children’s Arts Tax Credit; and the previous Family Tax Cut designed for family income-splitting with children under 18. The new CCB is not accounted as taxable income.

Try to minimise your family’s net income by using deductions to achieve your highest monthly benefit payments. Consider maximising registered retirement savings plans (RRSPs) to get more tax-free CCB income. Claim your child care expenses, moving expenses or union dues.

You can receive the benefit payments in the mail or sign up for direct deposit. For more detail, please contact us.

For more detail, please contact us.

Source: CRA

 

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