Hi All,

I am thoroughly confused about various child tax benefits available in Canada. I tried to go through the material available on Govt of Canada's website and on this website, but found it very confusing. I would appreciate if somebody could explain various children related benefits.

To guide the responses, I am also giving here my questions.

1. What is the difference between National child benefit supplement (NCBS) and CCTB?

2. Does the govt consider income of current and previous years in the case of CCTB?

3. How did I get CCTB for only one month of 2006? My case details are as given below.

I have a five year old child. I have been in Canada for the last three years. For the first two years, I was a student. And in those two years, my spouse and I earned about $15,000 every year. In the third year (2006) we together earned about $50,000.

Recently I received two letters from the CRA. The first letter (payment period July 2006- June 2007) says we get $65 for May-07 to June 07 period (just one month).
This letter also (erroneously) says that our 2005 family income was $80,000.

The second letter (payment period July 2007- June 2008) says that we are not entitled for any CCTB based on our net family income.

4. What is universal child care benefit? How is it different than CCTB? For UCCB, does the govt use the same criteria that are used for CCTB?

I received another letter about UCCB ( payment period July 2006- June 2007), which grants us $100 per month .

With all these letters and their cryptic language , I am totally confused. Can I request you people to help me understand this situation?

Thanks,

MG.

Its good that u put all this questions.
There is too much confusion from Canadian Govt regarding all this.

What I understand is for CCTB & Uni Child, parameters are same. Income for u & spouse for last year as per declared in tax return

Also I want to know if any rules change regarding Child supplement benefits? ( which is part of CCTB)

I found for me they reduced CCTB amt by almost 50 % compared to last year what I was getting.

Also whether this CCTB depends upon Province where u stay or not?

I tried to use CALCULATOR on Cra website, its also shows reduced amount

So in CCTB there are two part i.e Basic & Child supp benefits ?
On what points they are depending?

Hope to get answers from experts

I think your best bet would be to call the CCRA (or HRDC for UCCB) and discuss your case with them!

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$ 100 per month is Universal child care benefit which you will get of each dependant children until he /she reaches the age of 6....

say if you have 3 kids under the age of 6 you will get 300 per month and if you have 2 under 6 and 1 over 6 you will get only 200 per month....

In your case you have one child under the age of 6 you will get 100 per month until he reaches the age of 6.

Another New Benefit

Ontario Child Benefit (OCB) program

The Province of Ontario announced, in its budget of March 22, 2007, the Ontario Child Benefit program, to financially assist lower-income families with children. In July 2007, the Canada Revenue Agency will start administering this program.

In July 2007, the program will provide a non-taxable, one-time, OCB payment of up to $250 for each dependent child under the age of 18. This payment will be reduced by 3.4 cents for every dollar of family net income that is more than $20,000.

Starting in July 2008, the OCB will be paid monthly. For the 2008-09 payment year, the OCB will provide up to $600 for each dependent child under the age of 18. The payment will be reduced by 8 cents for each dollar of family net income that is more than $20,000. The maximum OCB payment will increase each payment year up to the 2011-12 year, when the payment will be $1,100 for each dependent child under the age of 18.

If you are eligible for an OCB payment, you should receive your one-time payment by the end of July 2007.






CCTB " Canada Child Tax benefits" is avaliabe to those low income parents who have kids under the age of 18.

Annual maximum CCTB (including the NCBS) for the July 2007 to June 2008 benefit year for families with net incomes below $20,435 in 2006

Families with net incomes below $20,435 will get the maximum CCTB - including the full NCBS and the supplement for the third and each additional child - of:
$266.67 per month ($3,200 per year) for the first child,
$247.92 per month ($2,975 per year) for the second child, and
$248.33 per month ($2,980 per year) for all other children in the family, along with any supplement for children under 7 that is applicable.

Families with net incomes between $20,435 and $36,378 will get the maximum basic CTB, the supplement for the third and each additional child, and a partial NCBS, along with any supplement for children under 7 that is applicable. Families with four or more children will also be entitled to a partial NCBS if their income is just above $36,378.

One and two-child families with net incomes between $36,378 and approximately $99,128 will receive partial benefits. Larger families may also be entitled to a partial CCTB if their income is above $99,128.

The annual Children's Special Allowances amount will increase from $2,949.96 to $3,200.04. The monthly amount per child will increase from $245.83 to $266.67 in July 2006.



I hope this will Help

Thanks Tigercanada, very good reply, really it helps everyone a lot...........