Best Child Tax Benefit Calculator - Comparewise

Child Tax Benefit Calculator

The Canada Child Benefit provides tax-free monthly payments to qualified families to support their under-18-year-old children. Each year, the Canada Revenue Agency determines the child benefit tax based on the benefits return and income tax.

The tax benefits can be computed using a child tax benefit calculator. To compare the two tax systems, enter the number of children and the parent’s salary into the Canada Child Tax Benefit Calculator.

To qualify for the Canada child tax benefit, parents must pay their taxes every year, even if they have no income for the present year. The CCTB rewards are distributed over twelve months.

Calculate Child Tax Benefit - Comparewise

Canada Child Tax Benefit

The Canadian Child Tax Benefit program was established in 1992 and went into operation in January 1993. To offer the same income tax benefits to all taxpayers with children, the previous child tax exemptions were changed into a flat-rate nonrefundable credit.

Anyone who received child allowances on behalf of a dependent kid might use this credit. In Canada’s fifty-year history of assistance programs for families and children, the Child Tax Benefit is the most recent innovation.

Based on data from income tax returns, payments are made every 12 months (July through June). One tax-free monthly benefit is created by combining the benefits from three different programs.

The current federal child support program in Canada is known as Canada Child Benefit (CCB), which took over for UCCB in 2016. Since the CCB is a need-based program, its payment increases along with an increase in adjusted family net income (AFNI).

The total of both parents’ incomes, less any child support payments they may have received during the most recent tax year, is the adjusted family net income. The Canada Revenue Agency is committed to managing CCB. Since CRA has access to the income data required to calculate the CCB, it is the best agency to run this initiative.

Additionally, it has the equipment and information in place to distribute payments to a huge number of Canadians. Receiving CCB is subject to numerous requirements, including:

  • Becoming a citizen of Canada (for tax purposes).
  • Having primary responsibility for a child’s upkeep and maintenance.
  • Being a parent to the child.
  • Residing legally in Canada (either you or your partner).

Living in Canada can be a complicated situation. While physically residing in Canada, one may not be considered a resident of Canada by CRA. Others, however, can reside outside of Canada while still being counted as Canadian residents by the CRA.

Some people only live in Canada for a portion of the year, which adds to the complexity of the situation.

Canada Child Tax Benefit Calculator - Comparewise

How To Calculate Your Child Tax Benefits

You can compute your benefit using the data listed below for the payment period of July 2022 to June 2023:

  • How many and how old are your qualifying children.
  • Your net family income after adjustments is required.
  • Eligibility of a child for the tax credit for disabilities (DTC)

You and your common-law partner or spouse must prepare different tax returns each year even if you had no income to qualify for the CCB.

The base year is the tax return year from which data is gathered to determine the CCB amount for the tax payment period. The year that ends just before the beginning of the payment term is known as the base year.

The CCB payments are made over a 12-month period, which is known as the payment period. The payment period runs every year starting on July 1 of the base year until June 30 of the next year. For instance, in July 2022, the first month of the payment term, CCB payments based on the 2021 tax return will begin to be made.

How Canada Child Tax Benefit Is Determined

The CCB is determined as follows.

  • Every eligible child younger than six will receive $6,997 per year ($583.08 per month).
  • Each eligible child aged 6 to 17 receives $5,903 annually ($491.91 per month).

As soon as the adjusted family net income (AFNI) exceeds $32,797, these amounts begin to be lowered. This is how the decrease is calculated:

Families with one eligible child receive

  • A decrease of 7% of their AFNI over $32,797 and up to $71,060.
  • The reduction for income over $71,060 is $2,678 plus 3.2% of AFNI over $71,060.

For households with two qualifying children

  • 13.5% of the AFNI is higher than $32,797 and up to $71,060 is deducted.
  • For income above that amount, the deduction is $5,166 + 5.7% of AFNI.

Families with three eligible children receive

  • A decrease of 19% of their AFNI up to $71,060 (AFNI greater than $32,797).
  • When income exceeds $71,060, the reduction is $7,270 + 8% of the excess AFNI over $71,060.

For households with four or more qualified children

  • A decrease of 23% of the AFNI amount over $32,797 and up to $71,060.
  • If your income exceeds $71,060, you will be subject to a decrease of $8,801 plus 9.5% of that amount.

Child Disability Benefit

The child disability benefit (CDB) is an extra monthly benefit that is part of the Child Credit Benefit (CBB).  It aims to help qualified families support children who have severe and persistent impairments in their physical or mental abilities. Parents who qualify for the disability tax credit (DTC) and have children under the age of 18 may use the CDB.

Each child qualified for the DTC may receive up to $2,985 annually from the CDB. The CDB starts to decrease when the adjusted family net income (AFNI) hits $71,060. This is how the decrease is calculated:

  • Families with one child who qualifies for the DTC will receive a decrease of 3.2% of their AFNI over $71,060.
  • Families who qualify for the DTC and have two or more children will see a decrease of 5.7% of their AFNI over $71,060.

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Annual Income (Max. 150,000)

Number of Children Under 6 (Max. 6)

Number of Children Aged 6-17 (Max. 6)

Result

Monthly Benefit
Annual Benefit

You may be eligible for up to in monthly benefits.

Child Tax Benefit Calculator

The Canada Child Benefit provides tax-free monthly payments to qualified families to support their under-18-year-old children. Each year, the Canada Revenue Agency determines the child benefit tax based on the benefits return and income tax.

The tax benefits can be computed using a child tax benefit calculator. To compare the two tax systems, enter the number of children and the parent’s salary into the Canada Child Tax Benefit Calculator.

To qualify for the Canada child tax benefit, parents must pay their taxes every year, even if they have no income for the present year. The CCTB rewards are distributed over twelve months.

Calculate Child Tax Benefit - Comparewise

Canada Child Tax Benefit

The Canadian Child Tax Benefit program was established in 1992 and went into operation in January 1993. To offer the same income tax benefits to all taxpayers with children, the previous child tax exemptions were changed into a flat-rate nonrefundable credit.

Anyone who received child allowances on behalf of a dependent kid might use this credit. In Canada’s fifty-year history of assistance programs for families and children, the Child Tax Benefit is the most recent innovation.

Based on data from income tax returns, payments are made every 12 months (July through June). One tax-free monthly benefit is created by combining the benefits from three different programs.

The current federal child support program in Canada is known as Canada Child Benefit (CCB), which took over for UCCB in 2016. Since the CCB is a need-based program, its payment increases along with an increase in adjusted family net income (AFNI).

The total of both parents’ incomes, less any child support payments they may have received during the most recent tax year, is the adjusted family net income. The Canada Revenue Agency is committed to managing CCB. Since CRA has access to the income data required to calculate the CCB, it is the best agency to run this initiative.

Additionally, it has the equipment and information in place to distribute payments to a huge number of Canadians. Receiving CCB is subject to numerous requirements, including:

  • Becoming a citizen of Canada (for tax purposes).
  • Having primary responsibility for a child’s upkeep and maintenance.
  • Being a parent to the child.
  • Residing legally in Canada (either you or your partner).

Living in Canada can be a complicated situation. While physically residing in Canada, one may not be considered a resident of Canada by CRA. Others, however, can reside outside of Canada while still being counted as Canadian residents by the CRA.

Some people only live in Canada for a portion of the year, which adds to the complexity of the situation.

Canada Child Tax Benefit Calculator - Comparewise

How To Calculate Your Child Tax Benefits

You can compute your benefit using the data listed below for the payment period of July 2022 to June 2023:

  • How many and how old are your qualifying children.
  • Your net family income after adjustments is required.
  • Eligibility of a child for the tax credit for disabilities (DTC)

You and your common-law partner or spouse must prepare different tax returns each year even if you had no income to qualify for the CCB.

The base year is the tax return year from which data is gathered to determine the CCB amount for the tax payment period. The year that ends just before the beginning of the payment term is known as the base year.

The CCB payments are made over a 12-month period, which is known as the payment period. The payment period runs every year starting on July 1 of the base year until June 30 of the next year. For instance, in July 2022, the first month of the payment term, CCB payments based on the 2021 tax return will begin to be made.

How Canada Child Tax Benefit Is Determined

The CCB is determined as follows.

  • Every eligible child younger than six will receive $6,997 per year ($583.08 per month).
  • Each eligible child aged 6 to 17 receives $5,903 annually ($491.91 per month).

As soon as the adjusted family net income (AFNI) exceeds $32,797, these amounts begin to be lowered. This is how the decrease is calculated:

Families with one eligible child receive

  • A decrease of 7% of their AFNI over $32,797 and up to $71,060.
  • The reduction for income over $71,060 is $2,678 plus 3.2% of AFNI over $71,060.

For households with two qualifying children

  • 13.5% of the AFNI is higher than $32,797 and up to $71,060 is deducted.
  • For income above that amount, the deduction is $5,166 + 5.7% of AFNI.

Families with three eligible children receive

  • A decrease of 19% of their AFNI up to $71,060 (AFNI greater than $32,797).
  • When income exceeds $71,060, the reduction is $7,270 + 8% of the excess AFNI over $71,060.

For households with four or more qualified children

  • A decrease of 23% of the AFNI amount over $32,797 and up to $71,060.
  • If your income exceeds $71,060, you will be subject to a decrease of $8,801 plus 9.5% of that amount.

Child Disability Benefit

The child disability benefit (CDB) is an extra monthly benefit that is part of the Child Credit Benefit (CBB).  It aims to help qualified families support children who have severe and persistent impairments in their physical or mental abilities. Parents who qualify for the disability tax credit (DTC) and have children under the age of 18 may use the CDB.

Each child qualified for the DTC may receive up to $2,985 annually from the CDB. The CDB starts to decrease when the adjusted family net income (AFNI) hits $71,060. This is how the decrease is calculated:

  • Families with one child who qualifies for the DTC will receive a decrease of 3.2% of their AFNI over $71,060.
  • Families who qualify for the DTC and have two or more children will see a decrease of 5.7% of their AFNI over $71,060.

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October 30, 2022
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FAQs about our Child Tax Benefit Calculator

How is child tax benefit calculated?

The child tax benefit in Canada is calculated based on the age bracket. According to CCB payments in 2021, you might get a maximum of: $6,833 per year ($569.41 per month) for each eligible child younger than age 6; $5,765 per year ($480.41 per month) for each eligible child between the ages of 6 and 17; and $484.41 per month for all other eligible children.

How to calculate the child tax benefit

To calculate the child tax benefit, you can make use of the child tax benefit calculator for your province to determine the old and the new tax structure.

How Canada's child tax benefit is calculated

Your eligibility for the Canada Child Benefit is determined by your family’s income from the previous year, the number of kids in your care, and their ages. Payments for Canada’s child benefits are adjusted each July based on your family’s adjusted annual income and inflation.

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