fbpx

Child Disability Benefits (CDB)

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.

You agree to receive regular financial updates via email from us. You have the option to unsubscribe at any time?(required)


Disclaimer:

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as investment, financial, legal, accounting or tax advice. Please obtain independent professional advice, in the context of your particular circumstances. This newsletter was written, designed and produced by Samuel Li for the benefit of Samuel who is Advisors at : SamuelConsultant.com is a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.

Mutual Funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated. Investia is not liable and/or responsible for any non mutual fund related business and/or services.

Samuel Li

Hi, I'm Samuel Li. I started my financial advisory practice in 2005, assisting Canadians in growing their long-term wealth while protecting their assets. One area I specialize in is servicing families with disabilities. If you'd like to explore how I can assist you, feel free to email me at Samuel@SamuelConsultant.com

Recent Posts