If you’re a single parent or are going to be getting a divorce, something you need to know about is the Canada Child Benefit. The benefit has recently changed, and it could mean that you’re going to receive more support for your child’s care.
According to a March 31 report, the existing form of the CCB was complicated and was given regardless of income. However, that system wasn’t adequate and didn’t sufficiently provide for the people who needed it most. Starting in July 2016, the CCB will change. The new CCB can provide up to $6,400 per child under the age of six, while children between the ages of six to 17 could receive up to $5,400. It’s estimated that the changes made to the system will boost the credit for families by around $2,300 a year.
Here are a few examples of how the CCB could affect you. If you’re a low-income parent, then you could receive a credit of up to $12,800 per year instead of $11,170, which is what you would have received in the past. For single parents earning a higher amount, that will be reduced. For instance, if you earn $70,000 and have a child between the ages of six and 17, you can expect a total benefit of $2,790.
It’s important to realize that even if you earn more, you can still benefit from the new plan. The benefits used to be taxed, but now they aren’t. That means that if you received $5,000 before, you’d pay back some of that money to the government, but now it’s tax free, giving you more money to work with in your accounts.