Canada’s Child Benefit: What You Need to Know

Good news, parents in Canada--the Canadian government announced that an update is coming to the Canada Child Benefit (CCB) program, and you will be happy to know that this upgrade will bring more money you can use to raise your kids!

In a news release dated July 20, 2022, Karina Gould, the Minister of Families, Children and Social Development, announced on the CCB's 6th anniversary that the maximum annual Canada Child Benefit will increase to help families cope with the rising cost of living in the country. So, if you’re wondering, “is child tax benefit going up?” the answer is a resounding “yes”!

Gould, in her statement, says: “Canadian families are worried about the rising costs associated with raising kids, but they are not in this alone. Through our new Affordability Plan, the continued indexation of the Canada Child Benefit, and our Canada-wide early learning and child care system, we will continue to prioritize the needs of children and families and help put money back in the pockets of Canadians when they need it the most.”

The next question you may have in mind is when will the Child Tax Benefit increase? The child tax increase 2022 announcement applies for the 2022 to 2023 benefit year. Eligible families receive up to $6,997 per child under 6 years old and $5,903 per child aged 6 to 17.

Last July 20, Statistics Canada revealed that the country’s inflation rate had hit a record-breaking 8.1%, which makes it harder for families, especially those with children, to handle their expenses. With the new child tax benefit, families from low- to middle-income families raising kids have increased financial support. Note that the new child tax benefit is tax-free and will be based on your income.

Eligibility for the Canada Child Benefit

To find out if you can apply for a child tax benefit, you must meet all of these requirements based on the Government of Canada's website:

• You live with a child who is under 18 years old
• You are primarily responsible for the care and upbringing of your child
• You are a Canada resident for tax purposes
• You and your spouse or common-law partner must be any of the following:
• A Canadian citizen
• A permanent resident
• A protected person

A temporary resident who has lived in Canada for the previous 18 months, and has a valid permit in the 19th month other than one that states “does not confer status” or “does not confer temporary resident status”

An individual who is registered, or entitled to be registered under the Indian Act

Note: You cannot get the Canada Child Benefit for a foster child for any month in which Children’s Special Allowances (CSA) are payable.

You may get the CCB if you live with and care for a child under a kinship or close relationship program from the Canadian government, a province, a territory, or an Indigenous governing body, as long as CSA is not payable for that child.

Applying for Canada Child Benefit

Do you want to know how to apply for child tax benefits? This section answers the when and how.

Apply for CCB as soon as any of the following situations happen to you:

• Your child is born
• A child starts to live with you or returns to reside with you after a temporary period with someone else
• You begin, end, or change a shared custody arrangement
• You get [custody]( of a child
• You, or your spouse or common-law partner, meet the eligibility conditions of who can apply for CCB.

Note: You may need to provide additional documents if a child started living with you over 11 months ago.

You may apply for a CCB through the following options:

• Birth registration
• My Account

• By mail

  Takeaways

Raising kids is a tough job. Thankfully, the Canadian government is willing to help parents to raise their kids. So, take advantage of the new 2022 upgrade of the child tax benefit, especially if you are doing your best to make ends meet.

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