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August 15, 2023

CRA to pay New Canada Child Benefit on August 18, 2023

This coming Friday August 18, 2023, qualifying parents living in Canada with their child(ren) will receive new Canada Child Benefit (CCB) payment from the Canada Revenue Agency (CRA). Many parents and caregivers will be receiving increased payments than they received  in the past.

In line with the current inflation, the income thresholds for the Canada Child Benefit for 2023–2024 have been adjusted, making it possible for more families to qualify for the maximum monthly benefit.

Parents get Canada Child Benefit payments based on the adjusted family net income (AFNI) as reported on the tax return of the previous year. This year, the CCB will be increased from a maximum of $6,997 per year to $7,437 per year for one child aged less than 6.

To ascertain the AFNI, you must evaluate your family net income, which is the sum of line 23600 on your tax return and line 23600 on your spouse’s or common-law partner’s tax return.

Deduct the Universal Child Care Benefit (UCCB) and Registered Disability Savings Plan (RDSP) income from this total.

Canada Child Benefit Calculation for 2023

For the payment period from July 2023 to June 2024, a family having a net income of $34,863 in 2022 can get a maximum tax-free benefit of:

  • up to $7,437 per year ($619.75 per month) per child under the age of six, and
  • $6,275 per year ($529.91 per month) per child aged six to 17.

Additionally, if your family’s adjusted net income is greater than $34,863, but less than $75,537, then the payment for that child is reduced by 7% after $34,863.

For more clarity, CCB payments decrease progressively, as listed in the below table:

Adjusted Family
Net Income (AFNI)
In 2022
CCB (Canada
Child Benefit)
1 Child
Aged less
than 6
CCB (Canada
Child Benefit)
1 Child Aged
between 6
and 17
Less than $34,863 $7,437 per year
($619.75 per month)
$6,275 per year
($529.91 per month)
$34,864 to $75,537 $7436.93 to $4589.82 per year
($619.74 to $382 per month)
$6,274.93 to $3,427.82
Greater than $75,537 $7,436.93 – ($2,847 + 3.2% of your income greater than $75,537) $6,274.93 – ($2,847 + 3.2% of your income greater than $75,537)

Canada Child Benefit Increase 2023

Canada Child Benefit Eligibility

An individual or a couple residing with a minor under the age of 18, predominantly accountable for the child’s care and upbringing, as well as a resident of Canada for tax purposes, you or your spouse or common-law partner is one of the following:

  • Canadian citizen
  • Permanent resident
  • Protected person
  • Temporary resident who has lived in Canada for the previous 18 months and has a valid permit in the 19th month other than one that states “does not confer status” or “does not confer temporary resident status.”
  • Person who is registered or entitled to be registered under the Indian Act

If you are new in Canada or just had a baby, you will need to check CCB eligibility and apply online.

Disclaimer: Note that Canada Child Benefit payments vary depending on the number of children in a household, adjusted net family income, and other existing benefits. Kindly use CRA calculator to get the most accurate numbers on how much you will get.

According to the CRA, the CCB is calculated as follows.

  • $7,437 per year ($619.75 per month) for each eligible child under the age of 6
  • $6,275 per year ($522.91 per month) for each eligible child aged 6 to 17

These amounts start being reduced when the adjusted family net income (AFNI) is over $34,863. The reduction is calculated as follows:

  • For families with one eligible child:
    • the reduction is 7% of the amount of AFNI greater than $34,863 up to $75,537
    • for income greater than $75,537, the reduction is $2,847 plus 3.2% of AFNI greater than $75,537
    • For families with two eligible children:
      • the reduction is 13.5% of the amount of AFNI greater than $34,863 up to $75,537
      • for income greater than $75,537, the reduction is $5,491 plus 5.7% of AFNI greater than $75,537
    • For families with three eligible children:
      • the reduction is 19% of the amount of AFNI greater than $34,863 up to $75,537
      • for income greater than $75,537, the reduction is $7,728 plus 8% of the amount of AFNI greater than $75,537
    • For families with four or more eligible children:
      • the reduction is 23% of the amount of AFNI great
      • the reduction is 23% of the amount of AFNI greater than $34,863 up to $75,537
      • for income greater than $75,537, the reduction is $9,355 plus 9.5% of the amount of AFNI greater than $75,537

    See below future Canada Child Benefit 2023 Payment Dates

    • August 18, 2023
    • September 20, 2023
    • October 20, 2023
    • November 20, 2023
    • December 13, 2023

     

    Need further information or immigration assistance? Send us an email on eseumohimmigration@gmail.com

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