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CCB Increase | What Are Your Options and Will CCB Increase Happen in 2024?

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CCB Increase | What Are Your Options and Will CCB Increase Happen in 2024?

Parenting in Canada comes with its own set of challenges, and the associated costs can be substantial. To help ease the financial burden, the Canadian government provides support through the Canada Child Benefit (CCB).

In this article, we will explore the CCB program, eligibility criteria, and steps to ensure you receive the full benefits for your child. Additionally, we’ll discuss the recent Child Benefit Increase and provide insights into the possibility of further increases in 2024.

CCB Increase | What Are Your Options and Will CCB Increase Happen in 2024?

What is Canada Child Benefit?

The Canada Child Benefit (CCB) is a federal program designed to assist eligible families financially based on their adjusted family net income (AFNI). Calculated using the net income from the previous year’s tax return, the benefit is provided monthly from July to June of the following year.

Child Benefit Increase

The CCB has recently been raised to offer a higher maximum amount per child compared to the previous benefit year. The adjustment, implemented by Employment and Social Development Canada (ESDC) in July of the preceding year, aims to help families cope with the rising cost of living.

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The government has increased the maximum annual payment for each child under six to CAD 7,437, up from CAD 6,997, and for children aged six to seventeen, the annual amount has risen from CAD 5,903 to CAD 6,275.

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How to Increase Canada Child Benefit?

The net annual income reported in your family’s tax returns serves as the basis for determining the Canada Child Benefit. Filing your taxes each year is essential to remain eligible for the benefit, and failure to do so may result in the termination of benefits. Parents and grandparents can open a tax-free investment for their Canadian children and grandkids to ensure financial support for various life goals.

CCB Increase in 2024

Parents receiving the Canada Child Benefit can expect a boost in their monthly payments, with an annual increase indexed to inflation. According to the federal government, there will be a 6.3% increase in the coming year, allowing families to receive up to CAD 7,437 for each child under six and up to CAD 6,275 for each child between the ages of six and seventeen.

How is the Canada Child Benefit Calculated?

The CCB amount is calculated annually, considering factors such as the number and ages of children, marital status, and adjusted family net income (AFNI).

Filing your tax return on time is crucial, as the benefit decreases as income rises. It’s important to note that even families with little or no income should file tax returns, as this information influences the CCB calculation.

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Canada Child Benefit Payment Amounts

The Canada Revenue Agency (CRA) considers various factors, including the number and ages of children, eligibility for the child disability amount, and adjusted family net income, when calculating the CCB amount. The benefit amount, calculated in July, remains in effect until June of the following year.

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For the benefit year spanning July 2023 to June 2024, the baseline CCB rates are as follows:

  • CAD 7,437 annually for each child under six
  • CAD 6,275 annually for each child aged six to seventeen

Conclusion

The Canada Child Benefit is crucial for Canadian parents. Stay informed about eligibility, annual increases, and filing requirements to ensure your family receives the financial support it deserves.

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