CCTB: Calculation and payment information

1. When are Canada Child Tax Benefit (CCTB) payments made?
2. I did not receive my CCTB payment this month.  What should I do?
3. How do I tell the CRA about my change of address?
4. Can I start getting my CCTB payments by direct deposit?
5. How do I change my banking information if I receive my payments by direct deposit?
6. What happens to CCTB payments if the recipient dies?
7. When do we recalculate your CCTB?
8. What happens if you owe money for CCTB?
9. How are the Canada Child Tax Benefit and the National Child Benefit Supplement calculated?
10. What determines the maximum payment for the National Child Benefit Supplement (NCBS)?
11. Do the Child Care Expenses that I claim on my 2005 income tax return affect my CCTB?

1. When are Canada Child Tax Benefit payments made?
Benefits are paid over a 12-month period from July of one year to June of the next year. Generally, payments are made on the 20th of each month or, if your annual entitlement is less than $120, we will send it all in one payment on July 20th.

2. I did not receive my Canada Child Tax Benefit payment this month. What should I do?
We generally pay your benefit on the 20th of each month. If your payment does not arrive on that day, please wait five working days before calling us at 1-800-387-1193.

3. How do I tell the CRA about my change of address?
See How to change your address.

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4. Can I start getting my Canada Child Tax Benefit (CCTB) payments by direct deposit?
You can have your CCTB payments deposited directly into your account at a financial institution. To start direct deposit, complete the "Direct deposit" section on Form RC66, Canada Child Tax Benefit Application, or send us a completed Form T1-DD(1), Direct Deposit Request - Individuals. If you get your payments by direct deposit and your banking information changes, send us a completed Form T1-DD(1), Direct Deposit Request - Individuals. You cannot change your banking information by calling us unless you have other CRA products deposited into that same account.

If for any reason we cannot deposit a payment into your account, we will mail a cheque to you at the address we have on file.

5. How do I change my banking information if I receive my payments by direct deposit?
If you get your payments by direct deposit and your banking information changes, send us a completed Form T1-DD(1), Direct Deposit Request - Individuals. You cannot change your banking information by calling us unless you have other CRA products deposited into that same account.

6. What happens to Canada Child Tax Benefit (CCTB) payments if the recipient dies?
If an individual dies who was receiving CCTB payments for a child, the child's new caregiver should contact us and give us the date of the recipient's death.

We may still send out a payment after the date of death because we are not aware of the death. If this happens, please return the payment to us with a brief letter of explanation. See our listing of CRA offices for the one nearest you.

If you are the surviving spouse or common-law partner of the deceased individual and you lived with that person at the time of his or her death, in most cases you won't have to complete a new CCTB application. If certain requirements have been met, the children will be automatically transferred to your account.

If you are any other caregiver (such as grandparent or guardian), you will have to complete Form RC66, Canada Child Tax Benefit Application, and send it to us.

Note
If you are the new caregiver and the deceased individual was receiving payments under provincial or territorial child benefit programs that we administer, you do not have to apply separately to qualify for these payments. We will use the information from Form RC66 to determine if you are eligible for these programs.

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7. When do we recalculate your CCTB?
We will recalculate your benefit and send you a Canada Child Tax Benefit Notice showing our revised calculation:

• every July based on the returns that you and your spouse or common-law partner filed for the previous year;
• after each reassessment of either your or your spouse or common-law partner's return that affects the calculation of your benefit;
• after a child for whom you receive the CCTB turns 18 (the last payment you will receive will be for the month of his or her birthday); and
• after you tell us about changes to your situation that could affect your benefit (see When to contact us about your CCTB).

8. What happens if you owe money for CCTB?
If a recalculation shows that you were overpaid CCTB, we will send you a notice to advise you of the balance owing. We may keep all or a portion of future CCTB payments, income tax refunds, or goods and services/harmonized tax credit (GST/HST) credits until the balance is repaid.

9. How are the Canada Child Tax Benefit and the National Child Benefit Supplement calculated?
You can use our new online service to get an estimate of your benefits.

Your CCTB payments for the 12 - month period of July 2006 to June 2007 are calculated using the following information:

• The number of children you have;
• Your province or territory of residence;
• Your 2005 family net income;
• Your or your spouse or common-law partner's claim for child care expenses for 2005; and
• Your child's eligibility for the Child Disability Benefit.

Basic benefit:

• The basic benefit is $1,255 ($104.58 a month) for each child under age 18 (the basic benefit is different for residents of Alberta, see the note below).
• There is a supplement of $88 ($7.33 a month) for your third and each additional child.
• There is a supplement of $249 ($20.75 a month) for each child who is six years of age. This supplement is reduced by 25% of any amount you or your spouse or common-law partner claimed for child care expenses on your income tax return. Eligible families with children under six years of age will receive the new Universal Child Care Benefit.
• We subtract a benefit reduction from this amount if your family net income is more than $36,378. For a one-child family, the reduction is 2% of the amount of your family net income that is more than $36,378. For families with two or more children, the reduction is 4%.

Note
The Alberta provincial government has chosen to vary the amount of the basic benefit that its residents receive. The basic benefit is:

• $1,147 ($95.58 a month) for children under 7;
• $1,225 ($102.08 a month) for children 7 to 11;
• $1,373 ($114.41 a month) for children 12 to 15; and
• $1,452 ($121.00 a month) for children 16 or 17.

National Child Benefit Supplement (NCBS):

• One-child family: $1,945 a year ($162.08 a month). This amount is reduced by 12.2% of the amount of family net income that is more than $20,435.
• Two-child family: $1,720 a year ($143.33 a month). This amount is reduced by 22.9% of the amount of family net income that is more than $20,435.
• Three-or-more-child family: $1,637 a year ($136.41 a month). The total will be reduced by 33.2% of the amount of family net income that is more than $20,435.

Note
If you are on social assistance, the NCBS may affect the amount of your social assistance payments. Many provinces and territories will consider the NCBS you get as income and will adjust your basic social assistance by this amount.

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10. What determines the maximum payment for the National Child Benefit Supplement?
The National Child Benefit Supplement (NCBS) is intended for low-income families with children. Therefore, the maximum is paid only if family net income is less than $20,435. It is reduced by a percentage amount (which depends on the number of children) when family net income is more than $20,435. Families with three or less children and family net income between $20,435 and $36,378 will receive partial NCBS. Families with four or more children will still receive some NCBS if their family net income is just above $40,500.

11. Do the Child Care Expenses that I claim on my 2005 income tax return affect my CCTB?
The CCTB basic benefit includes a supplement for each child who is six years of age of $249.00 per year. This amount is reduced by 25% of the Child Care Expenses claimed by you or your spouse or common-law partner in 2005.

You or your spouse or common-law partner can claim less than the maximum child care expenses allowable if it is to your benefit. If you do not need your full child care expenses to reduce your 2005 federal tax to zero, it may be better to only claim what you need, since this may increase your supplement for children who are six years of age.

Please refer to the General Income Tax and Benefit Package for 2005 for more information about claiming child care expenses.