Child Tax Benefit for Single Parents
4 min read
The Canada child tax benefit (CBT) replaced the previous Canada child tax benefit (TCBT), which had been in place since 1980. The new Canada child tax benefit is more generous than the older versions. With its introduction into the 2021 Federal Budget, this has been improved to offer greater benefits to middle and low-income families.
In provinces such as Ontario, the newly-included child tax benefit is four points higher than the existing standard child tax benefit. In the province of Saskatchewan, the child benefits are now tax-free for children who receive them while they are enrolled in post-secondary education. In British Columbia, the new child tax benefit provides tax relief on child care expenses and is also tax-free for children who receive regular medical care from a licensed medical health care provider. Quebec has long offered parents financial assistance with regard to health-care costs for their child or children. The new tax credit enables low-income working parents to get additional benefits.
The benefits were first introduced into the public sector in July of last year. As per the new law, no one will be able to claim for the child benefit until July of the following year. Thus if you are expecting a child and are not yet declared as an eligible father or mother, you are not entitled to receive the child tax benefit until July of the following year. This also means that you will have to wait for the child benefit to be fully availed of during the year.
If you are expecting a child and have already filed your tax return for the current year, you may claim for the benefit but the amount will be reduced by the total amount of taxable income you have. For individuals, claiming for a child tax benefit is easy. The advantage with this is that you only need to file your tax returns for the current year and you will receive the benefit automatically. However if you are expecting a child this fall, you will need to file your tax returns for the current year and then wait until July of next year to file for the child tax benefit.
One important point to note is that only certain specified classes of persons will be allowed to claim for the child tax-free benefit. Usually, only members of the primary hirers and wage earner class are eligible to claim for the tax-free benefit. The list of classes who are qualified to receive the tax-free benefit are: members of the employed family group who work more than contracted hours; unemployed; students; disabled persons; pensioners; and people receiving federal social security payments. Some tax relief programs also provide additional benefits to certain categories of people who have disabilities, such as visually impaired people with disabilities that make it difficult for them to understand or walk. In Ontario, residents who are legally blind are entitled to a tax-free benefit.
There are several benefits that you can get from the child tax benefit. One is the working income supplement. If you have a disability that prevents you from working, you can use the working income supplement to reduce the amount of money you need to earn in order to pay taxes. You can get this benefit by filing a tax return with the Ontario government and stating the effect of the disability on the amount of your income.
Another advantage is the disability pension supplement. If you are 65 years or over and have a physical or mental disability that prevents you from working, you can use this supplement to supplement your federal income level. With this benefit, you will be able to receive an additional income each month that is equal to the difference between your regular income and the supplement you have been provided with. With this additional income, you can buy things that you need and contribute to the economic well-being of your community. However, you cannot use this supplement if you are claiming any other federal benefits such as the social program cost or the provincial tax credits. This is mainly because these two programs are designed to assist people who cannot support themselves by getting them professional services.
The child tax benefit and the disability pension supplement are two of the most popular tax benefits that low income persons in Ontario receive each month. Before getting these benefits, however, you should find out all that you can about the rules and regulations regarding these two programs. While these two benefits may be of great assistance to some low income earners, there are people who abuse them by not really qualifying for them because of certain criteria that the Ontario government requires them to meet. It is therefore recommended that you consult a tax expert before getting started with these programs.
