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Big changes are underway for those who take advantage of the Canada Child Tax benefit.  As of July 1, the Canada Child Tax Benefit is now the Canada Child Benefit, which includes payments previously made under the Canada Child Tax Benefit and the Universal Child Care Benefit.

The Canada Child Tax benefit payment was a tax-free monthly payment for taxpayers with children under the age of 18, and the Universal Child Care Benefit was a taxable benefit that was included in the income of the taxpayer.  The new tax-free Canada Child Benefit began July 20 and is payable based on the number and age of children.  The benefit is calculated based on a July to June calendar each year and also has a claw back based on income.

Eligibility for the Canada Child Benefit is based on income, age of children under age 18, and Canadian residency.  You also must live with the child for which you are claiming benefits. Those taking advantage of the previous Canada Child Tax Benefit do not need to apply again for the new benefits. The taxpayer primarily in charge of the care and upbringing of the child should apply for benefits as soon as possible after the birth of a child. To apply for benefits, you must complete Form RC66 (Canada Child Benefits Application).  Applicants must file a personal tax return each year to continue receiving benefits.

The Canada Revenue Agency has a convenient calculator on its website to determine the projected benefit amount.  Use the Child and Family Benefits Calculator HERE.  (http://www.cra-arc.gc.ca/benefits-calculator/).

For questions related to child and family benefits, contact Sloan Partners at info@sloangroup.ca or call (416) 665-7735.

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