6 ways you can get money from the federal government to help with costs of raising a child
Raising a child in Canada isn't cheap and you might be looking for ways to get money from the federal government to help offset those costs.
Well, quite a few federal benefits and credits are available to parents and you could get thousands of dollars each year.
You probably know about the Canada Child Benefit since it pays out every month but there are more ways the feds give money to parents.
Here are six benefits, credits, rebates and payments you can get from the federal government to help with the costs of a child.
Canada Child Benefit
The Canada Child Benefit (CCB) is a tax-free monthly payment that's meant to help with the cost of raising children under 18 years old.
If you want to receive the Canada Child Benefit, you must meet these conditions:
- you live with a child who is under 18 years old
- you are primarily responsible for the care and upbringing of the child
- you are a resident of Canada for tax purposes
- you or your spouse or common-law partner is a Canadian citizen, permanent resident, protected person, temporary resident who lived in Canada for the last 18 months and has a valid permit in the 19th month, or registered/entitled to be registered under the Indian Act
You can apply for the CCB through birth registration, online through the CRA's My Account or by mail.
If your adjusted family net income is under $34,863, you get the maximum CCB payment for each child. Payments won't be reduced.
The maximum is $7,437 per year ($619.75 per month) for each child under 6 years of age and $6,275 per year ($522.91 per month) for each child 6 to 17 years of age.
Canada Dental Benefit
There is an interim Canada Dental Benefit to help lower dental costs for eligible families earning less than $90,000 a year.
Parents and guardians could be eligible to get money if they pay for dental care for a child under 12 years old who isn't covered by a private dental insurance plan.
Depending on your adjusted family net income, you could get a tax-free payment of $260, $390 or $650 for each eligible child.
Applications are open until June 30, 2024 for:
- dental care received between July 1, 2023, and June 30, 2024
You can also apply for the additional payment for this benefit period or the previous period — October 1, 2022, to June 30, 2023 — if your child's dental costs were more than $650.
GST/HST credit
The goods and services tax/harmonized sales tax — more commonly known as the GST/HST credit — is a tax-free quarterly payment meant to offset the GST or HST that Canadians pay.
You're generally eligible for the GST/HST credit if you are:
- at least 19 years old
- a Canadian resident for income tax purposes the month before the payment and at the beginning of the payment month
The amount of money you get from GST/HST credit payments is based on your adjusted family net income and how many children under 19 years old you have.
If you applied for the CCB you could already be receiving the child portion of the GST/HST credit.
If you haven't applied for the CCB, you have another child or a child starts to live with you, you need to register that child to receive the GST/HST credit.
You do that by signing into the CRA's My Account, selecting "apply for child benefits," confirming your contact information, marital status and citizenship, and adding your child's name, gender, date and place of birth.
You could get up to $171 for each child under 19 years old.
Canada Carbon Rebate
Formerly known as the climate action incentive payment, the Canada Carbon Rebate (CCR) is a tax-free quarterly payment to help offset the cost of federal pollution pricing.
It's available to residents in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, P.E.I., and Newfoundland and Labrador.
You're eligible for the CCR if all of the following conditions are met at the beginning of the payment month:
- you're a resident of Canada in the month before the payment
- you're a resident of an applicable CCR province on the first day of the payment month
- you're 19 years old in the month before the CRA makes a payment or under 19 but have a child, spouse or common-law partner
If your child is registered for the CCB, GST/HST credit or CCR, a credit for each eligible child will be included in your CCR payment.
If your child isn't registered or eligible for the CCB or GST/HST credit, you need to register them for the CCR using the RC66 Canada Child Benefits Application form.
The CCR payment amount you get depends on your family situation and which province you live in.
Unlike other federal benefits, it won't be reduced based on adjusted family net income.
The quarterly payment in Alberta is:
- $56.25 per child under 19
- $112.50 for the first child in a single-parent family
- $47 per child under 19
- $94 for the first child in a single-parent family
- $37.50 per child under 19
- $75 for the first child in a single-parent family
- $35 per child under 19
- $70 for the first child in a single-parent family
- $23.75 per child under 19
- $47.50 for the first child in a single-parent family
- $25.75 per child under 19
- $51.50 for the first child in a single-parent family
- $27.50 per child under 19
- $55 for the first child in a single-parent family
- $37.25 per child under 19
- $74.50 for the first child in a single-parent family
Canada Learning Bond
The Canada Learning Bond (CLB) is an incentive of up to $2,000 offered by the federal government to help low-income families start saving for their children's post-secondary education.
Money will be deposited directly into the child's registered education savings plan (RESP).
It's available for eligible children from low-income families born in 2004 or later.
There is an initial payment of $500 for the first year the child is eligible and an additional $100 for each additional year of eligibility until the child turns 15, up to a maximum of $2,000.
Personal contributions are not required to receive the CLB which means you don't have to put any money into an RESP, you just have to set up the account.
To help cover the cost of opening an RESP, the feds will also pay $25 into the RESP in recognition of a one-time expense that's associated with opening the account.
If your child doesn't pursue post-secondary education, the CLB has to be returned to the government.
Canada Education Savings Grant
The Canada Education Savings Grant (CESG) is an incentive for families to save for a child's post-secondary education.
It pays an amount that's based on how much money is contributed to a registered education savings plan (RESP).
Money from this federal grant gets deposited directly into the child's RESP.
Regardless of family income, the basic CESG amount is 20% of annual personal contributions you make to all eligible RESPs for an eligible child up to a maximum of $500 each (or $1,000 if there is unused grant room from a previous year) to a lifetime limit of $7,200.
There is also an additional CESG amount for each eligible child. It's based on the adjusted family net income and can change over time.
You must start saving in an RESP for your child before the end of the calendar year in which your child turns 15. That ensures your child is eligible to receive the CESG.
If your child doesn't pursue post-secondary education, the CESG needs to be returned to the government.
This article's cover image was used for illustrative purposes only.
