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.
Where parents share custody, they may opt to share the Child Tax Benefit, but must submit together a letter attesting to their sharing of custody and their agreement to share this benefit.
The basic benefit includes (from July 1, 2007 to June 30, 2008):
The basic benefit is reduced when the net family income exceeds $37,178. For families with only one child, subtract 2% of the net family income that exceeds $37,178. For families with two or more children, subtract 4% of this amount.
