How to Claim Child Benefit in Canada: A Complete Guide

Key Takeaways

• Child benefit is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age.
• To apply for child benefits, you need a social insurance number, proof of birth, and your tax returns.
• The amount of child benefit you receive depends on your adjusted family net income, the number and age of your children, and their eligibility for the child disability benefit.
• You can use the child and family benefits online calculator to estimate your payments and check the payment dates on the CRA website.
• You should contact the CRA if your situation changes, such as your marital status, the number of children in your care, or your address.

Hey, Hustlers! Do you have children under 18 years of age? If so, you may be eligible for child benefit, a tax-free monthly payment from the government to help you with the cost of raising your kids. Child benefit can make a big difference in your budget, especially if you have a low or modest income. But how do you apply for it? How much can you get? And what are the rules and requirements? In this article, we will answer all these questions and more. We will also share some tips and resources from HustleHub, your trusted partner in personal finance and tax matters.

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What is Child Benefit?

Child benefit is a program administered by the Canada Revenue Agency (CRA) that provides a monthly payment to eligible families with children under 18 years of age. The program aims to reduce child poverty and support families with the expenses of raising children. The child benefit may include the child disability benefit, which is an additional amount for children who have a severe and prolonged impairment in physical or mental functions. The child benefit may also include related provincial and territorial programs, such as the Alberta child and family benefit, the BC family benefit, and the Ontario child benefit.

Who Can Apply for Child Benefit?

You can apply for child benefits if you meet the following criteria:

• You live with a child who is under 18 years of age
• You are primarily responsible for the care and upbringing of the child
• You are a resident of Canada for tax purposes
• You or your spouse or common-law partner are a Canadian citizen, a permanent resident, a protected person, a temporary resident who has lived in Canada for the previous 18 months, or an Indian within the meaning of the Indian Act

If you share custody of a child with another person, you can still apply for child benefits, but you will receive half of the payment that you would receive if you were the only person applying. You and the other person must both be eligible and must agree to share custody.

How to Apply for Child Benefit?

To apply for child benefit, you need to have a social insurance number (SIN) and proof of birth for each child. You also need to file your tax returns every year, even if you have no income, as the CRA uses your tax information to calculate your benefit amount. You can apply for child benefit in one of the following ways:

• Online: You can use the Automated Benefits Application (ABA) service on the CRA website to apply for child benefit online. You need to sign in to your CRA My Account and select “Apply for child benefits” under the “Benefits and credits” section. You will need to provide some information about yourself, your spouse or common-law partner, and your child. The ABA service is available for parents who are registering the birth of their newborn child in participating provinces and territories. For more information, go to Automated Benefits Application.
• By mail: You can fill out Form RC66, Canada Child Benefits Application, and mail it to your tax centre. You can find the address of your tax centre on the CRA website. You will need to attach a copy of your child’s proof of birth, such as a birth certificate, a birth registration, or a confirmation of permanent residence. You will also need to attach a copy of your proof of status in Canada, such as a Canadian citizenship certificate, a permanent resident card, or a confirmation of permanent residence. You can find Form RC66 and the instructions on how to fill it out on the CRA website or by calling 1-800-387-1193.
• In-person: You can visit a Service Canada office and apply for child benefit in person. You will need to bring your original documents, such as your SIN card, your child’s proof of birth, and your proof of status in Canada. You can find the nearest Service Canada office on the Service Canada website or by calling 1-800-622-6232.

How Much Can You Get from Child Benefit?

The amount of child benefit you can get depends on several factors, such as:

• Your adjusted family net income: This is your family net income minus any universal child care benefit (UCCB) and registered disability savings plan (RDSP) income received plus any UCCB and RDSP amounts repaid. Your family net income is the total of your and your spouse or common-law partner’s net income, which is the amount on line 23600 of your tax return. The lower your adjusted family net income, the higher your child benefit amount.
• The number and age of your children: You can get child benefit for each child under 18 years of age who lives with you. The amount per child is higher for children under 6 years of age than for children between 6 and 17 years of age. The amount per child is also higher if you have three or more children.
• The eligibility for the child disability benefit: If your child is eligible for the disability tax credit, you can get an additional amount of child benefit called the child disability benefit. To apply for the disability tax credit, you need to fill out Form T2201, Disability Tax Credit Certificate, and have it certified by a medical practitioner. You can find Form T2201 and the instructions on how to fill it out on the CRA website or by calling 1-800-387-1193.

The CRA calculates your child benefit amount based on your tax information from the previous year. For example, the child benefit payments you receive from July 2023 to June 2024 are based on your 2022 tax return. The CRA reviews your child benefit amount every July and sends you a notice of determination that shows how your benefit was calculated and what information was used.

You can use the child and family benefits online calculator to estimate how much child benefit you can get. You will need to enter some information about your family situation, such as your marital status, your number of children, their ages, and your income. The calculator will show you the monthly and annual amounts of child benefit and related programs that you may be entitled to. You can access the calculator on the CRA website or by using the MyBenefits CRA mobile web application.

When and How Do You Get Child Benefit?

You can get child benefit by direct deposit or by cheque. Direct deposit is the fastest and most convenient way to get your payments. You can sign up for direct deposit on the CRA website, by using the My Account service, or by calling 1-800-387-1193. You can also sign up for direct deposit through your financial institution’s online banking service. You will need to provide your bank account information, such as your branch number, institution number, and account number.

The CRA usually pays child benefit on the 20th day of every month. If the 20th day falls on a weekend or a holiday, the payment is made on the next business day. You can check the payment dates on the CRA website or by using the My Account service or the MyBenefits CRA mobile web application. You can also sign up for email notifications to receive a reminder before each payment date.

What Should You Do If Your Situation Changes?

You should contact the CRA as soon as possible if your situation changes, as it may affect your child benefit amount or eligibility. Some of the changes that you should report to the CRA are:

• The number of children in your care has changed: For example, if you have a new baby, if a child moves out of your home, or if a child dies.
• Your marital status has changed: For example, if you get married, separated, divorced, or widowed.
• A benefit recipient has died: For example, if you or your spouse or common-law partner who receives the child benefit dies.
• You are moving: You should provide your new address and the date of your move to the CRA.
• Other changes: For example, if you or your spouse or common-law partner becomes a Canadian citizen, a permanent resident, a protected person, or an Indian within the meaning of the Indian Act, or if you or your spouse or common-law partner leaves Canada permanently or temporarily.

You can report these changes to the CRA by using the My Account service, by calling 1-800-387-1193, or by sending a letter to your tax centre. You can find the address of your tax centre on the CRA website. You should also keep all the documents that support these changes, such as birth certificates, marriage certificates, separation agreements, or death certificates, in case the CRA asks you to provide them.

How to Avoid Common Mistakes with Child Benefit?

Child benefit is a valuable source of income for many families, but it also comes with some rules and responsibilities. If you make a mistake with your child’s benefit, you may end up receiving less than you should or having to repay some or all of the benefit you received. To avoid these problems, here are some common mistakes to avoid with child benefit:

• Not applying for child benefit as soon as possible: You should apply for child benefit as soon as your child is born or starts to live with you. If you delay your application, you may miss out on some payments, as the CRA can only pay retroactive child benefit for up to 11 months from the month they receive your application.
• Not filing your tax returns on time: You and your spouse or common-law partner need to file your tax returns every year, even if you have no income, to keep receiving child benefit. If you file your tax returns late, your child benefit payments may be delayed or stopped until the CRA receives your tax information. You may also have to pay interest and penalties on any balance owing.
• Not reporting changes in your situation: You should inform the CRA as soon as possible if your situation changes, such as your marital status, the number of children in your care, or your address. If you do not report these changes, you may receive more or less child benefit than you should, and you may have to repay some or all of the benefit you received.
• Not keeping your documents and records: You should keep all the documents and records that support your child benefit application and payments, such as birth certificates, marriage certificates, separation agreements, or death certificates. The CRA may ask you to provide these documents to verify your eligibility or to review your benefit amount. If you cannot provide these documents, you may have to repay some or all of the benefit you received.

If you need help with any of these issues, you can contact HustleHub, your trusted partner in personal finance and tax matters. We can help you apply for child benefit, file your tax returns, report changes in your situation, and keep your documents and records. We can also help you deal with any notices or letters from the CRA regarding your child benefit.

Conclusion

Child benefit is a tax-free monthly payment that helps eligible families with the cost of raising children under 18 years of age. To apply for child benefit, you need a social insurance number, proof of birth, and your tax returns. The amount of child benefit you receive depends on your adjusted family net income, the number and age of your children, and their eligibility for the child disability benefit. You can use the child and family benefits online calculator to estimate your payments and check the payment dates on the CRA website.

You should contact the CRA if your situation changes, such as your marital status, the number of children in your care, or your address. You should also avoid common mistakes with child benefit, such as not applying as soon as possible, not filing your tax returns on time, not reporting changes in your situation, or not keeping your documents and records.

We hope you found this article helpful and informative. If you have any questions or comments, please feel free to leave them below. And don’t forget to share this article with your fellow Hustlers who may benefit from it. Thank you for reading and happy hustling!

Source: (1) Canada child benefit (CCB) – Canada.ca. https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html. (2) Canada Child Benefit – Canada.ca. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4114/canada-child-benefit.html.