Canada Child Benefit (CCB) – Things you must know to save taxes!

Canada Child Benefit (CCB) – Things you must know to save taxes!

Raising a child is a huge responsibility. While it takes a test of your physical and mental wellness to raise a child in the best way, financial wellness to is very important here.

Therefore, it’s a must that all parents should be aware of the Canada Child Benefit (CCB), which provides monthly payments that are tax-free to help Canadians raise children younger than 18 years old.

But before we go into those details it is important to understand what is Canada Child Benefit (CCB)

Canada Child Benefit (CCB)

Families with children under the age of 18 receive a direct, tax-free monthly payment from the Canada Child Benefit (CCB). The 12-month CCB Benefits payment cycle runs from July to June of the following year. Your payments are recalculated by the Canada Revenue Agency (CRA) in July based on your family's net income from the prior year.

Important points to note –

• A tax-free monthly payment is given to families by the Canada Child Benefit (CCB) to assist them in covering the expenses of parenting children under the age of 18.
• To be eligible for the CCB, you must fulfil a number of requirements, such as residing with the eligible child(ren) and being a Canadian citizen.
• A bonus of up to $6,833 per child per year might be yours.

It is also important to understand that your monthly CCB payment may be augmented with the Child Disability Benefit if you are caring for a child (or children) under the age of 18 who has a long-term physical or mental handicap (CDB). You will automatically receive the Kid Disability Benefit if you qualify for the CCB and your child qualifies for the Disability Tax Credit (DTC). You don't need to apply.

Now let’s understand who is eligible to receive CCB

You or your spouse or partner must be:

1. A Canadian citizen or a Permanent Resident,
2. A Protected person
3. Registered under the Indian Act, or
4. A Temporary resident who has lived throughout the previous 18 months in Canada

Other conditions include:

Applying for CCB

By completing Form RC66 and including it with your tax return, you can apply for the Canada Child Benefit. Alternatively, you can apply online through your CRA My Account. Every year, you must apply for the benefit and complete an RC66 form, which TurboTax makes simple and straightforward for you. Remember that since there is only one monthly payment per household, only the parent who is the primary caregiver should apply for the Canada Child Benefit. The RC66 form must be signed by the partner of the parent who is primarily responsible (but isn't applying for the CCB) to attest to the accuracy of the information submitted.

Role of CRA (Canada Revenue Agency)

If you qualify for the CCB, you could get up to $6,833 per child annually. The CRA decides how much you will receive based on a variety of factors. Also, it is very important that you must keep the CRA informed of any changes to your marital status as soon as they occur because they may affect how much money you receive in benefits.

By connecting into your CRA account, you can quickly access information regarding your CCB benefits and payments.