Canada Child Tax Benefit (CCTB)
This benefit is a single non-taxable monthly payment made to the custodial parent of children under the age of 18. In order to receive the Canadian child tax benefit you must be the person mainly responsible for the care and upbringing of your children, you must live with your children, and you must be a Canadian resident or citizen.
Both parents must file income tax returns so that Canada Revenue Agency can calculate the benefit and send payment. Once the parties have separated, the custodial parent may notify the Canada Revenue Agency within 11 months of the separation and the base year income of the parents will be deemed to be that of the custodial parent only. Please note you must be separated for at least 90 days.
Beginning in July 2011, each eligible parent in a shared custody situation will get half of the child benefit and credit payments for that child every month that they qualify.
The Basic Benefit includes (from July 1, 2011 to June 30, 2012):
- Basic amount of $1,367 per year ($113.91 per month) for each child up to age 17
- Supplement of $95 per year ($7.91 per month) for the third child and each additional child
The basic benefit is reduced when the net family income exceeds $41,544. For families with only one child, subtract 2% of the net family income that exceeds $41,544. For families with two or more children, subtract 4% of this amount.
The National Child Benefit Supplement (NCBS) amounts are:
- $176.50 per month for the first child;
- $156.08 per month for the second child; and
- $148.50 per month for each additional child.
The NCBS will be reduced as follows:
- For a family with one child, the reduction is 12.2% of the amount of the adjusted family net income that is more than $24,183.
- For a family with two children, the reduction is 23% of the amount of the adjusted family net income that is more than $24,183.
- For families with three or more children, the reduction is 33.3% of the amount of the adjusted family net income that is more than $24,183.
The Child Disability Benefit (CDB), which is based on the adjusted family net income, provides up to a maximum of $208.66 per month for each child eligible for the disability tax credit. The CDB starts being reduced when the adjusted family net income is more than $41,544.
For more information, please read "Your Canada Child Tax Benefit" below.
