What Is Child Disability Benefits (CDB)?
The purpose of the Child Disability Benefit is to provide tax-free benefits to families who have a child with prolonged disability.
What Benefit Is Available?
CDB may provide monthly benefits of up to $220.83 per month or $2650 per year. The amount of benefits is based on:
- the number of children that are receiving Canada Child Tax Benefit (CCTB)
- your adjusted family income
You will receive the full amount of benefits if your adjusted family income is less than the base amount. Base amount is the figure that will be adjusted according to the number of children you have that are receiving the “Canada Child Tax Benefit.” To give you a clearer idea, below are the figures obtained from the CRA.
Number of children receiving CCTB is 1, then the base amount is $43,953
Number of children receiving CCTB is 5, then the base amount is $55,257
Number of children receiving CCTB is 8, then the base amount is $72,248
If your adjusted family income is over the base amount, the Child Disability Benefit will be reduced. Below is a quote from the CRA,
- “If you have one child who is eligible for the CDB, the amount of CDB is reduced by 2% of your adjusted family net income that is more than the base amount for one child for which you receive the CCTB (see the above chart).
- If you have two or more children who are eligible for the CDB, the amount of CDB is reduced by 4% of your adjusted family net income that is more than the base amount for the number of children for which you receive the CCTB (see the above chart).”
Who Is Eligible?
To be eligible for CDB, the child must be under 18 years old, and approved with the “Disability Tax Credit”.
How To Apply?
Since the child needs to be approved with the “Disability Tax Credit”, in order to do so, the form T2201 Disability Tax Credit Certificate will have to be filled out by you and a qualified practitioner. For more details about applying for the disability tax credit, please visit: http://samuelconsultant.com/disabilitytaxcreditcanada/
Once you are approved with the Disability Tax Credit, if you are already receiving the Canada Child Tax Benefit (CCTB), then the CRA will automatically retroactive your the Child Disability Benefits (CDB) for the current and the two previous benefit years. Anything beyond that would require your written request to the tax center. Depending on your location, you may find your tax center through this link: http://www.cra-arc.gc.ca/bnfts/ddrss-eng.html
If you are approved with the disability tax credit, but have not applied for the Canada Child Tax Benefit (CCTB), you need to complete the “Canada Child Tax Benefits Application Form RC66″ and mail that to your tax center. The form could be download at (http://www.cra-arc.gc.ca/E/pbg/tf/rc66/README.html)
Where Could I Obtain More Details About The Child Disability Benefits?
You may find out more details at http://www.cra-arc.gc.ca/cdb.
- Details are obtained from the following sources as of Aug 15, 2014.
- Information may be subjected to change without notice and cannot be guaranteed to be error-free. It is used for general understanding only and do not intend to provide any advice. Please consult the benefit program provider and a professional for exact details.
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