Canada Child Tax Credit
Canada pays month payments to the caretakers of children under the age of 18 who have lower incomes and qualify under the Canada Child Tax Benefit (CCTB) plan.
Canada Child Tax Credit
Rather than a credit that reduces the amount of taxes owed at the end of the year, Canada has a more proactive approach to helping lower income families with the expense of raising children. The Canada Child Tax Benefit plan, known as CCTB, pays a monthly payment to the qualifying families. The Canada Child Tax Credit approach includes an additional amount if the child is classified as disabled or has special needs.
The CDB is the Canada Disability Benefit that is paid to the families of children with physical or mental disabilities. There is a third benefit included in the Canada Child Tax Credit plan called the National Child Benefit. This NCB is an additional payment to the families of low income families who are employed and also caring for children with disabilities. The idea behind the NCB is to insure that families always fare better when the parents are employed and not relying solely on Government support.
The Canada Child Tax Credit requirements for eligible children under the CCTB plan is fairly strict in detailing that the taxpayer who is claiming the benefit actually is the one who provides the majority of the care to the child. For example, if a child and its mother were living in your household, you would not be eligible to receive the CCTB because it would be assumed that the mother is providing the majority of the direct care of the child. It is not merely financial support that is being considered under this plan. The child must also be under the age of 18 and a citizen of Canada or at least someone with a legal right to be living in the country.
It is suggested that application for the Canada Child Tax Credit plans including CCTB and CDB should be made as soon as possible after the birth of the child. The qualifying income levels and the amount of the monthly payments are calculated from the tax returns each year, and when income levels rise to the point where the benefit no longer applies, the payments will be stopped. It is really only the responsibility of the taxpayer to file his tax returns. This should be done yearly even when there is no reportable income to continue the determination of benefits process.
Canada is much more proactive in social type services such as Medical care and child support. The Canada Child Tax programs put monthly payments in the hands of qualified recipients which lessens the chance that a child will be in need during the course of the year. This differs from the United States Child Tax Credit which merely reduces the amount of tax owed which may or may not address the day to day needs of children.