Some Parents Receiving The Canada Child Benefit Will Get Less Money In 2023

Some parents who receive the Canada Child Benefit (CCB) may receive less money in the coming months, as the Canada Revenue Agency moves to recover overpayments from the COVID-19 pandemic.

As of March 2023, the CRA will begin reclaiming money from Canadians who have been overpaid via the CCB since May 2020.

According to a report from CBC News, some parents will have received less money via the CCB for March, as it's the first time that payments will be "impacted by offsetting."

The CCB — which is a tax-free monthly payment for eligible families with children under 18 — is among the benefits which may be offset or altered to recover taxpayer debt.

Online, the Canada Revenue Agency says it has now "resumed its work to address taxpayer debt," after a temporary pause due to the COVID-19 pandemic.

It adds: "Benefit and credit payments and tax refunds may be applied to pay down outstanding balances."

In this case, it means that the CRA has resumed offsetting or withholding CCB payments for taxpayers who have a balance owing due to past overpayments.

While some parents say the reduction of their CCB came as a surprise, the CRA claims to have sent letters to impacted individuals to inform them of their debt.

"The first CCB payment impacted by offsetting is the March 2023 payment," spokesperson Sylvie Branch confirmed to CBC.

"If a recalculation shows that an individual was overpaid CCB, the CRA sends a notice of redetermination that includes a remittance voucher to inform the individual of the balance owing."

Branch added that the CRA may keep some (or all) of a Canada Child Benefit payment until the owed balance has been repaid.

The same applies to other benefits too, including the GST/HST credit, the Canada Workers Benefit (CWB), and the Climate action incentive payment (CAIP).

Unlike with other benefits, the CRA won't withhold or reduce CCB payments to offset a tax balance or similar government debt. Instead, it will only reduce payments to cover previous overpayments.

Those struggling to make ends meet without their full CCB payment can get support from the CRA on a "case-by-case basis," Branch says.

Anybody who needs support is urged to contact the CRA as soon as possible, and the agency says it will work with Canadians to find a solution that works for them.

This article's cover image was used for illustrative purposes only.