Canada Revenue Agency: New parent? Learn about tax breaks and benefits for your family

NEW parents, don’t forget to take advantage of the many benefits and credits available that can be a big boost to your family budget.

 

How do you apply?

 

Use the Automated Benefits Application (ABA) to automatically apply for child benefits when registering the birth of your new baby. If you live in a province or territory that has ABA and you register the birth, you will automatically be applying or registering for:

  • the Canada child benefit (CCB) – A tax-free monthly payment made to eligible families to help them with the cost of raising children. You could get up to $6,400 per year for each eligible child under 6 years old and up to $5,400 for each eligible child from 6 to 17 years old.
  • the goods and services tax / harmonized sales tax (GST/HST) credit – A tax-free quarterly payment of up to $560 per year and an additional $147 annually per child, made to eligible individuals and families with low and modest incomes to offset all or part of the GST/HST that they pay.
  • related provincial/territorial programs that are administered by the Canada Revenue Agency (CRA) –  Most provinces and territories also have child and family benefits and credits, which eligible individuals and families can get in addition to the CCB and the GST/HST credit.

If you live in a territory that does not have the ABA, you can use the “Apply for child benefits” service in My Account or fill out Form RC66, Canada Child Benefits Application and send it to your tax centre.

Use My Account or the MyBenefits CRA web app to find out when your next CCB payment will be made and how much it will be.

 

Other benefits and credits

  • Child disability benefit – A tax-free benefit for eligible families who care for a child under 18 who is eligible for the disability tax credit. The child disability benefit is paid monthly along with the Canada child benefit.
  • Working income tax benefit (WITB) – A refundable tax credit that provides tax help for working low-income individuals and families. Eligible individuals and families may be able to apply for WITB advance payments, which are paid quarterly.

Save for your child’s education

 

It’s never too early to start saving for your child’s education by contributing to a registered education savings plan (RESP). Benefits programs such as the Canada education savings grant and the Canada learning bond are incentives for using an RESP to save for a child’s post-secondary education.

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