Last month the Canada Child Benefit Young Child supplement (CCBYCS) took effect.
Families entitled to the CCB with children under the age of six should keep an eye out as they can expect to see a little more money in the bank this year.
According to a press release, the federal government delivered almost $2 billion in additional support in May 2020 through a special one-time $300 top-up of the CCB per child to help families with children cope with the added pressures of COVID-19.
The press released noted the Canadian Government realizes that the unpredictable expenses of the COVID-19 pandemic, in particular, have impacted young families.
“Many families with young children have been struggling to make ends meet, especially during the ongoing pandemic. With additional expenses such as diapers, at-home learning and even temporary alternatives to regular child care arrangements, our government stepped up to provide crucial support through the Canada Child Benefit, which has helped lift nearly 435,000 children out of poverty. The new CCB young child supplement announced today will help support families who need it the most by putting more money directly in their pockets,” expressed Ahmed Hussen, minister of families, children and social development.
Families who collect CCB and have a net income of $120,000 or less can expect $1,200 in support per child under the age of six. Families earning over $120,000 can expect to receive $600. The funds will be distributed in four payments.
Diane Lebouthillier, minister of national revenue, commented, “Having raised my children as a working mother, I know the challenges that parents face when balancing the well-being of their children with economic necessity. This supplement will offer families with young children a significant reprieve from the pressures of the pandemic and offer them further opportunity for recovery and a return to a new normal for themselves and for their children.”
The press release further informed, “The first payments will be issued on May 28, 2021, which will include both the January and April payments for those entitled to them. The final two payments will be issued on July 30 and October 29, 2021.”
Anyone who already receives the CCB does not need to do anything to receive the payments. However, to access the payments, the press release said families need to file their 2019 and 2020 tax returns.
The payments made in May for each of the first two quarters (January and April) are based on a family’s net income for 2019. The July and October payments will be based on a family’s net income for 2020. This may mean that payment amounts differ for some families mid-way through the year. Families that have not yet filed for either year could still qualify for CCB and for the CCBYCS by doing their taxes as soon as possible.
Approximately 1.6 million Canadian families and about 2.1 million children under the age of six will benefit from this. The Canada Child Benefit (CCB) is a tax-free monthly payment based on income, and it helps support low to middle-income families with the cost of raising children under 18.