The federal government is replacing the family tax cut and universal child care benefit which was an opportunity for parents of kids under 18 to claim expenses for raising their children. The new plan is called the Canada child benefit and may save some money for most lower to middle income Canadian families.
Here is an article by Evelyn Jacks and Walter Harder that explains the changes in detail:
Here’s what to expect in the new credit calculations. First, your cheque will now depend on family income from your 2015 tax return. June cheques were based on 2014 income. For couples, both spouses must have filed their 2015 returns in order to qualify. If you filed late, you may not receive your July cheque unless your return(s) were assessed before early July.
Most low to middle income families will receive more benefits under the Canada Child Benefit program than under the old Child Tax Benefit and UCCB (Universal Child Care Benefit) programs. And, as an additional benefit, none of the new amounts will be taxable (like the UCCB was).
The base amount for children under 6 is $6,400 or $533 per month. For children between 6 and 17 the base amount is $5,400 or $450 per month. Families whose 2015 net income (exclusive of UCCB) was below $30,000 will receive the full amount. As family net income increases, the CCB decreases. The rate of decrease depends both on family net income and the number of children.
It’s important to note that the clawback of the new benefits increases marginal tax rates more significantly in some tax brackets; in others, the marginal tax rates have been reduced. For example, a family with net income over $26,021 in 2014 and three kids had a clawback rate of 33.3%. That’s higher than the rates under the new revised regime at that level..
For a more detailed determination of your cheque amount (including provincial and disability benefits) check out CRA’s calculator.
You can read the original article here http://www.knowledgebureau.com/index.php/news/article/new-canada-child-benefits-arrive-july-20-what-to-expect