Canada Child Benefit: Find out how much you'll get under new program
Brian Rosenberg, right, and his husband Ferd van Gameren sit down for lunch with children Levi, 5, and three-year-old twins Sadie, centre, and Ella in Toronto, Monday, June 9, 2014. (Galit Rodan / THE CANADIAN PRESS)
Marlene Leung, CTVNews.ca
Published Wednesday, March 23, 2016 12:36PM EDT
Last Updated Wednesday, March 23, 2016 3:51PM EDT
The Canada Child Benefit program , detailed in the federal budget on Tuesday, will see Ottawa putting more money in the wallets of low- and middle-income families with children starting in July. Here's a look at some of the details of the new program.
Who is eligible for it?
Families with children under the age of 18 are eligible for the Canada Child Benefit program (CCB), which is replacing the current Canada Child Tax Benefit, National Child Benefit and Universal Child Care Benefit.
Only parents who are Canadian citizens, permanent residents, or refugees are eligible to receive the benefit, according to the Department of Finance. As well, an individual must be a resident of Canada for tax purposes in order to be eligible for the CCB.
How much do families get?
The amount of money a family will receive depends on their net income and how many children they have. The Canada Revenue Agency will calculate a family’s adjusted net income based on information reported on income tax returns.
The new program will pay up to $6,400 per child under the age of six, and up to $5,400 per child for those aged six through 17. However, the amount of money begins to decrease once a family’s net income reaches $30,000.
The government has created an online calculator to help parents get an estimate of how much money they would be eligible to receive.
According to the calculator, a family with one child under the age of six and a net income of $30,000 would get a tax-free benefit of $533 a month, or $6,400 a year.
A family with a net income of $90,000 with one child under the age of six would get a benefit of $262 a month, or $3,150 a year.
A family with a net income of $150,000 with one child under the age of six would get a tax-free benefit of $102 a month or $1,230 a year.
When does it start?
Pending the budget passing, the CCB is set to begin in July 2016.
How does it compare to the former program?
The government says nine out of 10 families will receive more money with the CCB than they do under the existing programs. However, families earning more than $150,000 a year will generally receive less under the new CCB program.
With files from The Canadian Press