With a new government comes a new budget and part of that means changes to the Canada Child Tax Benefit. The changes, which will come into effect in July 2016, will benefit low to middle income families the most.
The first thing that parents want to know is, “How much will I get?” That is determined by how much your family earns, how many children you have, and the ages of your children.
Families that earn less than $30,000 a year will earn the maximum. If you earn more than that, the amount of your benefit will decrease proportionate to your earnings.
Global News says, ““Child benefit payments get fattened meaningfully in the low-to-middle income range at the expense of those in the middle-to-upper income ranges,” BMO economists Doug Porter and Robert Kavcic said.”
The maximum for amount to be received by a family for a child under the age of 6 is $6,400 per year. A child between the ages of 6 and 17 will result in $5,400 per year.
According to MacLean’s magazine, “Nine out of 10 families will, according to government calculations, get bigger monthly cheques than a suite of child benefits delivered to families during Stephen Harper’s time in office.”
If you want to find out exactly how much your family will receive in the Canada Child Tax Benefit, starting in July, you can fill out the CCTB calculator.
Another question that may be on your mind is, “What will this cost tax payers?” Well, it will cost more than the previous plans that have been implemented by the past government. Tax payers will pay $22.4 billion overall for this new benefit plan.
Why is the Liberal government calling this a “better” way to do things? One of the benefits is that it is not taxable. Under the previous system, parents had to pay taxes on a portion of the amount that the received each month.
Also, under the previous set up, everyone got money, no matter how much they earned. Now, the families that earn the least will benefit the most. So, if you make a lot of money, you might not like this new Canada Child Tax Benefit so much.
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