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Canada Child Tax Benefit
DCHP-2 (Jun 2016)
Spelling variants:CCTB, child tax benefit
n. — Administration
a national program that provides tax-free monthly payments to low- and moderate-income families with children under the age of 18.
Type: 1. Origin — The Canada Child Tax Benefit program replaced the Family Allowance program in 1992. The change was significant because the CCTB targets families with low or moderate incomes, rather than all families with children under 18 (see the second 1992 quotation and Canadian Encyclopedia reference). The latter function is today met by the Universal Child Care Benefit, which is universal, i.e. paid regardless of family income, but taxable.
See also OED-3, s.v. "child benefit" (C2).
See also OED-3, s.v. "child benefit" (C2).
Quotations
1992
The new child tax benefit taking effect next January would:
* Give larger monthly payments to an estimated 2 million Canadian families with net incomes below $50,000.
* Increase the monthly payment to low-income families ($20,000 a year) with one child 18 or under to $144 from $35.
* Raise the monthly payment to low-income families with three children to $321 from $105.
* Give larger monthly payments to an estimated 2 million Canadian families with net incomes below $50,000.
* Increase the monthly payment to low-income families ($20,000 a year) with one child 18 or under to $144 from $35.
* Raise the monthly payment to low-income families with three children to $321 from $105.
1992
But the most daring proposal was to roll up three measures of support for children - including the family allowances, which go back to 1945 - into a new child tax benefit.
This ends the universality of family allowances. That is an important symbolic breakthrough.
1992
Speaking of history, while the country was busy worrying about how to answer on October 26, the House of Commons scrapped the family allowance program - the first universal social program in Canadian history, when they were established in 1945. The last of the cheques, also known as the baby bonus, will be mailed out in December. They're being replaced with a child tax benefit cheque.
1997
Wilf and Nancy Zemke ask if there is anything to gain by putting their child tax benefit into a registered education savings plan. The answer: very little.
1998
According to "The National Child Benefit in Alberta . . . a message for families on welfare", a brochure delivered to social assistance recipients by the Alberta government, receiving the blessed Canada Child Tax Benefit (CCTB) is like winning big money on Wheel of Fortune.
1999
Some 3.2-million Canadian families receive the CCTB, covering 80% of children in the country. 'This measure can put significantly more disposable income into the pockets of poor families with several children,' says Rod Blakley, a CA with the Chartered Accountants of Canada.
2008
The TFSA would also be beneficial for families receiving the Canada Child Tax Benefit -- also income tested -- should they need to withdraw from it to make a large purchase like a car or a down payment on a home.
2012
Parents receiving the Canada Child Tax Benefit (CCTB) do not report it on the tax return, but both parents must file by April 30 to keep receiving the benefit. I can predict at least a few phone calls in July from parents wondering what happened to their cheque.
Tax savings will never cover all your expenses, but these extra dollars can help with a few of the costs that come with raising children.
2016
The Canada Revenue Agency uses information from your income tax and benefit return to calculate your CCTB payments. To get your benefits, you have to file your return on time every year, even if you did not have income in the year. If you have a spouse or common-law partner, they also have to file a return every year.
References
- OED-3