Parenting & Family

Child Tax Benefit - Everyone Gets It???

  • Last Updated:
  • Sep 11th, 2020 10:23 pm
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Nov 13, 2010
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Scarborough
riseagainstthemachine wrote: As a new father in April 2019, what kind of benefits can I apply for?
if in ontario everything is automatically applied using the newborn 4-in-1 bundle registration.
Ensure you have supplied acocunt numbers of bank for wife to CRA so the money comes in quickly
No worries.
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Feb 15, 2009
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fogetmylogin wrote: I completely agree. Basically I think of this benefit as increasing the marginal tax rate for those with children. If you have enough children and the right income it could get as much as 75%. (This is with like 12 kids but still)
Absolutely agree that with daycare and RRSP deductions it is possible to make a big change in your benefit which doesn't seem fair.
We will be claiming daycare fees for the first time on our taxes. How does daycare fees fit in? reduces your taxable income? How is it best to claim the daycare under, the higher income earner, mother (on mat leave) or father?
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Nov 13, 2013
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Ottawa
tatung wrote: We will be claiming daycare fees for the first time on our taxes. How does daycare fees fit in? reduces your taxable income? How is it best to claim the daycare under, the higher income earner, mother (on mat leave) or father?
You don\t have a choice. You must claim it on the lower income earner and you can only claim it if the lower income earner is working or studying (not Mat leave).
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Dec 20, 2018
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TrevorK wrote: It definitely does reset but it can also be a massive windfall. I think in our case we are able to time it so that we will receive ~$10,000 boost in child/income related benefits (over the course of a year), besides the obvious income tax savings.

To me it feels like it's gaming the system because it's net income after a bunch of deductions. Most social programs do not allow you to count your income after deductions (at least in my city / province). I should not qualify for these programs with the wage I make but because I can make a substantial RRSP contribution I now magically can. On one level it feels like the system is setup wrong when it allows this (even if just for a year). It's hard to always explain but sometimes taking advantage of something you qualify for can still not feel "right" to some extent.
fogetmylogin wrote: I completely agree. Basically I think of this benefit as increasing the marginal tax rate for those with children. If you have enough children and the right income it could get as much as 75%. (This is with like 12 kids but still)
Absolutely agree that with daycare and RRSP deductions it is possible to make a big change in your benefit which doesn't seem fair.
You're doing exactly as the system intended though, that's the whole point of rrsps, to lower your income bracket for taxation and credits to encourage people to save for retirement. Otherwise, why bother
Sr. Member
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Jul 25, 2015
626 posts
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Burnaby, BC
Also depends on the province. In BC, income of $160 000, with 1 child under 7 can have about $1200/year in CCB. Under 30k income can bring up to $6500/child/year.
Sr. Member
Oct 12, 2014
612 posts
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North York, ON
Quick questions about CCB. Do you only apply for CCB during the time when you submit your tax return or can you apply as soon as you have a child?
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Aug 2, 2001
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yellowlight18 wrote: Quick questions about CCB. Do you only apply for CCB during the time when you submit your tax return or can you apply as soon as you have a child?
https://www.canada.ca/en/revenue-agency ... apply.html

You can apply for the CCB when you register the birth of your newborn. In most cases, registration is done by paper at the hospital or birthing centre. Residents of Ontario, Quebec and British Columbia also have the option to register online.

Be sure to give your consent and provide your social insurance number in order for the Vital Statistics Agency to securely share the birth registration information with the Canada Revenue Agency (CRA). If you do not give your consent, your information will not be sent to the CRA, and you will need to apply for the CCB separately.
Sr. Member
Oct 12, 2014
612 posts
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North York, ON
TrevorK wrote: https://www.canada.ca/en/revenue-agency ... apply.html

You can apply for the CCB when you register the birth of your newborn. In most cases, registration is done by paper at the hospital or birthing centre. Residents of Ontario, Quebec and British Columbia also have the option to register online.

Be sure to give your consent and provide your social insurance number in order for the Vital Statistics Agency to securely share the birth registration information with the Canada Revenue Agency (CRA). If you do not give your consent, your information will not be sent to the CRA, and you will need to apply for the CCB separately.
If you apply for CCB at the time of birth, is the net income in your application based on your tax return filed income (ex. 2019 income if applying in 2020)?

For my situation, if I apply right now based on 2019 income I wouldn't be eligible to receive any CCB. However when I file my 2020 taxes next year and reduce my income via RRSP, I believe I can get CCB. Therefore should I just wait until next year to apply?
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Aug 2, 2001
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yellowlight18 wrote: If you apply for CCB at the time of birth, is the net income in your application based on your tax return filed income (ex. 2019 income if applying in 2020)?
It may seem weird - but it feels like it runs a year behind.

CCB runs from July 1 - June 30. For example, what I receive on July 1 2020 is based on my 2019 taxes (which I filed in spring 2020).

Therefore if you qualify for CCB now it will be based on your 2019 taxes.

Therefore should I just wait until next year to apply?
You typically apply when your child is born (the hospital does this). There is no reason not to apply and get the wheels in motion, especially if your math is wrong.
Sr. Member
Oct 12, 2014
612 posts
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North York, ON
TrevorK wrote: It may seem weird - but it feels like it runs a year behind.

CCB runs from July 1 - June 30. For example, what I receive on July 1 2020 is based on my 2019 taxes (which I filed in spring 2020).

Therefore if you qualify for CCB now it will be based on your 2019 taxes.




You typically apply when your child is born (the hospital does this). There is no reason not to apply and get the wheels in motion, especially if your math is wrong.
But if I apply now and don't get it, then do I just apply again next year when my income is lower?
Sr. Member
Oct 24, 2010
871 posts
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Ottawa
yellowlight18 wrote: But if I apply now and don't get it, then do I just apply again next year when my income is lower?
You can apply/reapply every year. They adjust based on your taxable income from the previous year.

Ours is actually pretty high given our $200k household income because my wife's income was low last year while on parental leave, dropping our taxable to below $100k. Our CCB will plummet next year.
Deal Expert
Aug 2, 2001
16576 posts
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yellowlight18 wrote: But if I apply now and don't get it, then do I just apply again next year when my income is lower?
Every year when you submit your taxes, your benefit is recalculated for July 1. You cannot have a lower income in one year and then base the next 18 years of benefits off of that (that's what it sounds like you were thinking).

This allows you to adopt strategies to maximize the benefit like spousal RRSP contributions if you choose to have a second child when your partner's income is significantly reduced while yours is high.
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Nov 13, 2010
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Scarborough
yellowlight18 wrote: But if I apply now and don't get it, then do I just apply again next year when my income is lower?
Apply for it, the cra will use your sin# to calculate automatically and it comes into yoyr account (supply account info if prompted) and u wilk get it if u qualify.

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