Having a baby
If you have a new baby or have a baby on the way, there are plenty of credits and benefits you may be entitled to receive.
Explanations of these benefits are provided below.
- Canada child tax benefit (CCTB) – The CCTB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age.
- Universal child care benefit (UCCB) – If you have children under 6 years of age, you may be eligible to receive $100 per month per child. You should apply for this as soon as possible after the birth of your child. Under proposed changes effective January 1, 2015, parents will be eligible for a benefit of $160 per month for each eligible child under the age of six – up from $100 per month. In a year, parents will receive up to $1,920 per eligible child under the age of six, and $720 per child aged six to 17.
- GST/HST credit – Families with low or modest incomes can receive this tax-free quarterly payment to offset some of the GST/HST they pay. To receive this credit, you must file an income tax and benefit return every year, even if you have no income to declare. If you have a spouse or common-law partner, only one of you can receive the credit. The credit will be paid to the person whose return is assessed first. The amount will be the same, regardless of who (in the couple) receives it.
- Provincial and territorial programs – Most provinces and territories have child and family benefit and credit programs that are issued with your Canada child tax benefit and the goods and services tax/harmonized sales tax (GST/HST) credit. Check out your options.
- Working Income Tax Benefit (WITB) – Low-income families that are in the workforce can claim this refundable tax credit to get personal tax relief. You can claim the WITB on line 453 of your tax return if you meet all the eligibility criteria.
- Disability amount – If you have a severe and prolonged impairment in physical or mental functions and meet certain conditions, you may be entitled to claim the disability amount. To determine if you may be eligible for the disability tax credit (DTC), you must complete Form T2201. Disability Tax Credit Certificate and have it certified by a qualified practitioner (medical doctor, optometrist, audiologist, etc.). When done, send the certified original form to the Disability Tax Credit Unit at your tax centre.
- Family Tax Cut – Under proposed changes, a non-refundable tax credit of up to $2,000 is available to eligible couples with children under the age of 18, and is effective starting with the 2014 tax year.
- Child disability benefit (CDB) – The CDB is a tax-free benefit for families who care for a child under age 18 who is eligible for the disability tax credit.
- Registered education savings plan (RESP – You can start saving for your child’s future now. An RESP is a contract between you (the subscriber) and
another individual or organization (the promoter) that allows you to make contributions toward your child’s future education. Programs such as the Canada education savings grant (CESG) and the Canada Learning Bond (CLB) are other great incentives to create an RESP for your child.
- Registered disability savings plan (RDSP)– A registered disability savings plan (RDSP) helps families save for the financial security of a person who is eligible for the disability tax credit. Although RDSP contributions are not tax deductible they can be made until the end of the year in which the beneficiary turns 59.