Ensuring Continuity of Child Benefits: What You Need to Know
Maintaining a steady stream of support through the Canada Child Benefit (CCB) and related provincial and territorial payments requires proactive steps and timely updates. Here’s a comprehensive guide to help you understand the process, avoid disruptions, and manage changes effectively.
Filing Your Tax Return
To continue receiving your CCB and associated payments, it’s crucial to file your tax return on time every year. This applies to both you and your spouse or common-law partner, even if your income is tax exempt or you have no income at all. Failure to file your tax return annually will result in your payments being stopped.
Tax Exempt Status and CCB
Your Canada Child Benefit (CCB) payment is tax-free. You won’t receive a slip for it, nor do you need to report it on your tax return.
Reasons for Stopped Payments
Your payments may cease due to various reasons:
- Failure to file your tax return
- Non-response to CRA correspondence regarding your situation
- Failure to update CRA on changes such as address, bank account, marital status, or income levels
- High income recalculations done annually in July based on the previous year’s income, indexed to inflation
- Child turning 18 or no longer in your care
- Ineligibility due to residency or citizenship status changes
Changes Affecting Payment
Your payment may change due to:
- Adjustments in family net income, recalculated annually in July
- Changes in marital status
- Changes in the number of children in your care
- Child reaching age six or turning 18
- Alterations in custody arrangements
Repayment of Overpayment
If the CRA identifies an overpayment, they will notify you with a remittance voucher detailing the amount owed. The CRA may recover this overpayment from future CCB payments, income tax refunds, or other federal, provincial, and territorial benefits.
Updating Personal Information
Keep the CRA informed of any changes promptly to avoid disruptions:
- Address Change: Notify CRA of your new address immediately.
- Marital Status Change: Update your marital status to ensure accurate payments.
- Direct Deposit/Bank Account Change: If changing bank accounts, ensure your old account remains open until your first payment is successfully deposited into your new account.
- Residency Status Change: Inform CRA of any changes in residency status promptly.
Reporting Special Circumstances
- Abusive or Violent Situation: Benefit and credit payments can be received without jeopardizing safety. Visit CRA’s resources for more information.
- Reporting a Death: If the benefit recipient passes away, notify CRA promptly to adjust benefit payments accordingly.
Changes in Child Custody
- Shared Custody: If custody arrangements change, inform CRA immediately using appropriate forms or through My Account.
Starting or Ending Shared Custody
- Notify CRA promptly of any new shared custody arrangement or if the child is no longer in your care.
Temporary Custody Changes
- Temporary custody changes (e.g., summer arrangements) require updated applications for benefit payments during the period of custody.
Child Starts Living with You
- Apply for CCB when a child begins living with you using My Account or Form RC66.
Child No Longer in Your Care
- Notify CRA immediately if a child no longer resides with you, to prevent overpayments.
Ensuring uninterrupted child benefits involves proactive communication and timely updates with the CRA. By staying informed and promptly notifying the CRA of any changes, you can effectively manage your entitlements and avoid payment interruptions. For more detailed information and to manage your benefits online, visit the CRA’s official website or contact their helpline for assistance.
