What Is the Canada Child Tax Benefit?


Quick Answer

The Canada Child Tax Benefit consists of monthly payments that are nontaxable and paid to families with children under 18 who are eligible for financial assistance, explains the Canada Revenue Agency. The two types of assistance include the child disability benefit and the national child benefit supplement.

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Full Answer

The child disability benefit is monthly financial assistance for families or caregivers of children with severe and prolonged physical or mental disabilities, according to the Canada Revenue Agency. The national child benefit supplement is reserved for low-income families who have children under 18 in the home. The national child benefit was created to reduce duplication of government services and programs and reduce the intensity of child poverty. The program is designed to provide assistance to children when parents are working.

Eligibility requirements for the Canada Child Tax Benefit stipulate that adult recipients must live with a child under 18 and reside in Canada, explains the Canada Revenue Agency. Recipients must be the primary caretaker of the child or children, and they or their common-law partner or spouse caring for the child or children must be a protected person, Canadian citizen, permanent resident or temporary resident with 18 months of residency before benefits are released to the family.

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