What is the 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.
How much CDB can you get?
For the period of July 2023 to June 2024, CDB may provide monthly benefits up to $3,173 ($264.41 per month) for each child who is eligible for the DTC.
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.
The benefit starts being reduced when the adjusted family net income is greater than $75,537. The reduction is calculated as follows:
- For families with one child eligible for the benefit, the reduction is 3.2% of the amount of adjusted family net income greater than $75,537.
- For families with two or more children eligible for the benefit, the reduction is 5.7% of the amount of adjusted family net income greater than $75,537.
Still confused about how much CDB you could be entitled to? No problem, here’s the Child and Family Benefits Calculator. I also tried it myself. It will prompt you to input some figures such as the number of children, their date of birth, your family income, etc., then it will show you an estimate of the different government benefits you’re entitled to (including the Canada Disability Benefits.)
Who is Eligible?
To be eligible for CDB, the child must be under 18 years old, and 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. Here’s another post with more details about applying for the disability tax credit.
Once you are approved with the Disability Tax Credit and 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. Here’s the link to download the form.
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. You are also welcome to contact me at Samuel@SamuelConsultant.com if you have any questions.
On a side note, if your child is entitled to the Child Disability Benefits, chances are they would be eligible to set up the Registered Disability Savings Plan (RDSP). This is a plan that can truly enhance their long-term savings. Here’s a guide that covers most of the common questions about the RDSP.
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