Canadian Capitalist

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The Canada Child Tax Benefit

May 8th, 2006 · 3 Comments

In chatting with friends who have children and a stay-at-home spouse, I find that many of them do not apply for the Canada Child Tax Benefit (CCTB), even though they may be eligible based on their household net income. Let’s say that someone with a stay-at-home spouse makes $80,000 per annum. Also, assume that they make a RRSP contribution of $13,600 every year. Based on their net income of $66,400, they may be eligible for a tax-free monthly CCTB payment of $71.24 for one child under 7 years of age or $50.99 for a child who is over 7 years old.

The Canada Revenue Agency’s website has detailed information about the CCTB program including a benefits calculator. The CCTB is not automatic; you have to apply for the benefit using form RC66 - Canada Child Tax Benefit Application once for every child you have. Don’t automatically assume that you won’t be eligible due to a high income.

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