Canada Child Benefit Increase 2024 – $7,800 Per Child Starting Next Week
Good news for Canadian parents! The Canada Child Benefit (CCB) is increasing, and you will soon receive a higher child tax payment. This change aims to provide more support to parents as living costs rise. Let’s dive into the details.
Benefit Year
The CCB benefit year starts on July 1 and ends on June 30 of the next year. Since 2018, the government has adjusted CCB amounts to help parents manage the changing cost of living.
Indexation of CCB
The government uses indexation to adjust the CCB amounts. This means that the maximum benefit amounts and the income thresholds where benefits start to decrease are increased every year based on the Consumer Price Index (CPI). This adjustment helps parents receive more support each month for their children.
Maximum Benefit Amounts
Last year, the government increased the maximum annual CCB payment per child under six to $7,437. For children aged six to 17, the amount increased from $5,903 to $6,275. This was an extra $372 per year for parents.
Upcoming Increase
Starting in July 2024, eligible parents will see even higher payments. Usually, payments are sent out on the 20th day of each month. However, since July 20 falls on a Saturday this year, the payment will be deposited on July 19.
The Employment and Social Development Canada (ESDC) plans to increase the child tax payment by 4.7%. Here’s how the new amounts look:
New Maximum Benefit Amounts
| Age Group | Previous Maximum Amount | New Maximum Amount | Increase Amount |
|---|---|---|---|
| Under six years old | $7,437 | $7,787 | $350 |
| Six to 17 years old | $6,275 | $6,570 | $295 |
Tax-Free Payments
These increased amounts are tax-free, meaning parents don’t have to pay taxes on the money they receive from the CCB. This helps parents have more money available for their children’s needs.
Why the Increase?
The increase in CCB is to help parents cope with the rising cost of living. As prices for goods and services go up, the government wants to ensure that parents have enough financial support to provide for their children. By indexing the CCB to the CPI, the government aims to keep the benefit amounts in line with inflation.
How to Receive the Benefit
To receive the CCB, parents need to meet certain eligibility criteria. These include being a resident of Canada for tax purposes, living with the child, and being the primary caregiver. The CCB is calculated based on the family’s income from the previous year.
Important Dates
Here are some important dates related to the CCB increase:
| Event | Date |
|---|---|
| Start of new benefit year | July 1, 2024 |
| Payment date for increased amount | July 19, 2024 |
What Parents Need to Do
Parents don’t need to take any special action to receive the increased CCB payments. The government will automatically adjust the payments based on the new rates. However, it’s important for parents to file their tax returns on time each year, as the CCB is calculated based on the previous year’s income.
Conclusion
The increase in the Canada Child Benefit is a welcome change for many Canadian parents. By providing more financial support, the government aims to help parents better manage the rising cost of living. Remember to check your account on July 19 for the new payment amount. With the increased CCB, you can have more peace of mind knowing you have additional support for your children’s needs.
If you have any questions about the CCB or need assistance, you can contact the Canada Revenue Agency (CRA) or visit their website for more information. Stay informed and take advantage of the benefits available to you and your family.
