Up to $1,200 more per child for 1.6 million families across Canada

OTTAWA, ON, May 12, 2021 /CNW/ - In the first four years since its implementation, the Canada Child Benefit (CCB) has helped lift nearly 435,000 children out of poverty. Families entitled to the CCB with children under the age of six can expect to receive a bit more money in the bank this year.

The Honourable Diane Lebouthillier, Minister of National Revenue and the Honourable Ahmed Hussen, Minister of Families, Children and Social Development announced today that the CCB young child supplement (CCBYCS) will take effect later this month.

The Government of Canada recognizes that young families in particular have been impacted by the unpredictable expenses of the COVID-19 pandemic. This money will help pay for things such as short-term child care arrangements, healthy food, clothes, and activities they can do at home as a family.

Families could receive up to $1,200 in support per child under the age of six in 2021. This will benefit about 1.6 million Canadian families and about 2.1 million children under the age of six.

In 2021, families that are entitled to receive the CCB with a net income of $120,000 or less, will receive $300 per payment for each child under the age of six.

The first payments will be issued on May 28, 2021, which will include both the January and April payments for those entitled to them. The final two payments will be issued on July 30 and October 29, 2021.

Families that already receive the CCB will not need to take any action to receive the payments. However, families do need to file their 2019 and 2020 tax returns to access them. The payments that will be made in May for each of the first two quarters – January and April - are based on the family net income for 2019. The July and October payments will be based on the family net income for 2020. This may mean that payment amounts differ for some families mid-way through the year.

Families that have not yet filed for either year could still qualify for CCB and for the CCBYCS by doing their taxes as soon as possible.

To learn more about the CCBYCS, go to canada.ca/CCB-young-child-supplement and to learn more about CCB, please go to Canada.ca/canada-child-benefit.

See backgrounder for additional breakdown regarding payments.

Quotes

"The Government of Canada is committed to supporting all hard-working families and individuals across the country. Having raised my children as a working mother, I know the challenges that parents face when balancing the well-being of their children with economic necessity. This supplement will offer families with young children a significant reprieve from the pressures of the pandemic and offer them further opportunity for recovery and a return to a new normal for themselves and for their children."

-The Honourable Diane Lebouthillier, Minister of National Revenue

"Every child across Canada deserves the best possible start in life. Many families with young children have been struggling to make ends meet, especially during the ongoing pandemic. With additional expenses such as diapers, at-home learning and even temporary alternatives to regular child care arrangements, our government stepped up to provide crucial support through the Canada Child Benefit, which has helped lift nearly 435,000 children out of poverty. The new CCB young child supplement announced today will help support families who need it the most by putting more money directly in their pockets."

-The Honourable Ahmed Hussen, Minister of Families, Children and Social Development

Quick Facts

• The Canada Child Benefit (CCB) is a tax-free monthly payment based on income, and provides increased support for low- to middle-income families, to help with the cost of raising children under 18 years of age.
• To help families with children cope with the added pressures of COVID-19, the federal government delivered, in May 2020, almost $2 billion in additional support through a special one-time $300 top-up of the CCB per child. Approximately 3.7 million families benefitted from this measure.
• Families that are entitled to the CCB with a net income of more than $120,000 will receive $150 per payment for each child under the age of six.

Backgrounder: CCB young child supplement, 2021

In the November 2020 Fall Economic Statement, the Government of Canada proposed an additional supplement be offered to families entitled to the Canada child benefit (CCB) with children under the age of six for the year 2021 to provide relief during Canada's recovery from COVID-19. The CCB young child supplement (CCBYCS) is part of Canada's Building Back Better plan to support Canadians during this period of recovery.  

This proposal received Royal Assent on May 6, 2021. Minister of National Revenue Diane Lebouthillier and Minister of Families, Children and Social Development Ahmed Hussen announced the supplement payments will be issued to Canadian families who receive the CCB for children under the age of six, beginning May 28, 2021.

This CCBYCS is available to families who are entitled to receive the CCB in January, April, July or October 2021. The first two payments of the year will be issued at the same time on May 28, 2021 and are based on the family net income from 2019 as reported on their tax return. The July and October payments are based on the family net income for 2020 as reported on their tax return.

Those families with a net income of $120,000 or less, will receive $300 per payment for each child under the age of six. Families with a net income of more than $120,000 will receive $150 per payment for each child under the age of six.

Individuals and their spouse or common-law partner, if applicable, must file their 2019 and 2020 tax returns to receive all the payments they are entitled to.

Please use the breakdown below for more information:

If a family is entitled to receive the CCB in January 2021 for a child under the age of six, they can expect to receive:

• $300 per child if the net family income for 2019 is $120,000 or less
• $150 per child if the net family income for 2019 is more than $120,000

If a family is entitled to receive the CCB in April 2021 for a child under the age of six, they can expect to receive:

• $300 per child if the net family income for 2019 is $120,000 or less
• $150 per child if the net family income for 2019 is more than $120,000

If a family is entitled to receive the CCB in July 2021 for a child under the age of six, they can expect to receive:

• $300 per child if the net family income for 2020 is $120,000 or less
• $150 per child if the net family income for 2020 is more than $120,000

If a family is entitled to receive the CCB in October 2021 for a child under the age of six, they can expect to receive:

• $300 per child if the net family income for 2020 is $120,000 or less
• $150 per child if the net family income for 2020 is more than $120,000.

Learn more canada.ca/CCB-young-child-supplement

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SOURCE Canada Revenue Agency