Canada Child Benefit (CCB) – How Your Tax Return Affects It

Canada Child Benefit (CCB) – How Your Tax Return Affects It

The Canada Child Benefit (CCB) is one of the most important financial supports for families in Canada. But many parents don’t realize that the amount they receive — or whether they receive it at all — depends heavily on their tax returns.

If you file late, report income incorrectly, or miss key details, your CCB can be reduced, delayed, or even stopped. Here’s a clear breakdown of how your tax return affects your monthly benefit.

What Is the Canada Child Benefit (CCB)?

The CCB is a tax-free monthly payment for parents raising children under 18. The CRA calculates your payments based on your family net income and the number of children you have.

This means:
Both you and your spouse must file taxes every year, even if you had zero income.

Why Your Tax Return Matters for CCB

The CRA uses information from your tax return to determine:

• Your eligibility

• Your monthly payment amount

• Whether you owe back payments or will receive retroactive payments

If you don’t file, the CRA has no way to confirm your income or family status — and your payments can stop.

How CCB Is Calculated

CCB amounts depend on family net income, which comes directly from your tax returns (line 23600 on both partners’ returns).

Lower net income = higher CCB.
Higher net income = reduced CCB.

The CRA recalculates your payments every July using the previous year's tax returns.

Example:

• 2024 taxes filed → determine CCB for July 2025 to June 2026

• 2025 taxes filed → determine CCB for July 2026 to June 2027

Your refund, credits, and CCB all connect through accurate filing.

Key Ways Your Tax Return Affects CCB

1. Filing Late Can Stop Your Payments

If either spouse files late, CCB may be:

• Delayed

• Reduced

• Temporarily suspended

The CRA releases payments only after both tax returns are assessed.

2. Changes in Income Adjust Your Monthly CCB

A small increase in family income can reduce CCB.
A decrease can increase it.

Examples:

• A spouse loses their job → next year’s CCB may increase

• A big raise → next year’s CCB may decrease

This is why updating and filing correctly is crucial.

3. Your Marital Status Affects Your CCB

If you:

• Move in together,

• Get married,

• Separate,

• Divorce,

• Become widowed,

You must inform CRA within 1 month.

Incorrect marital status = incorrect CCB.

4. Shared Custody Means Each Parent Gets 50%

If you share custody, CRA splits payments 50/50.
Both parents must file taxes every year to receive their portion.

5. Additional Child Disability Benefit (CDB)

If your child qualifies for the Disability Tax Credit (DTC), your CCB increases.

But you only receive it if:

• You file taxes, and

• Your child’s DTC is approved

6. Newcomers Must Report Worldwide Income

For newcomers to Canada, CCB is calculated using:

• Canadian income, AND

• Foreign income

If you don’t report worldwide income, CRA may stop or reassess CCB.

Common Reasons CCB Gets Delayed or Reduced

❌ Parent files taxes late
❌ Partner forgets to file
❌ Household income is reported incorrectly
❌ Marital status not updated with CRA
❌ Custody information missing or incorrect
❌ CRA requests proof and you don’t respond
❌ Newcomers forget to file RC66 or foreign income forms

These issues can cause months of missing payments.

How to Make Sure You Get the Maximum CCB

Here’s what families should do each year:

✔ File taxes early — both partners

File before April 30 to avoid benefit interruptions.

✔ Report all income accurately

Even if you had zero income, you must file.

✔ Keep marital status updated

This prevents CRA miscalculations.

✔ Keep childcare and custody documentation

CRA may request proof if something doesn’t match.

✔ Check your CRA MyAccount

You can view your benefit estimates, payment dates, and eligibility status.