Child Benefit in Canada has been designed to help parents provide better to their children. The amount that you receive through this initiative is decided based on:
- Number of children
- Age of the children
- Your marital status
- Your adjusted family net income (AFNI)
There’s a maximum cap on Child Benefit which is decided based on the age of your children. For every child under the age of 6, you would get a maximum of $6,639 per year ($553.25 per month) and for every child above 6 years of age and under 17, you get a maximum of $5,602 per year (466.83 per month).
The maximum child benefit is reduced based on your adjusted net family income and of course, the number of children.
Adjusted Net Family Income (ANFI) and the number of children determine the Child Benefit in Canada
Your adjusted net family income (ANFI) is your net income minus any universal child care benefit or disability savings plan that you received. Any repaid UCCB and RDSB amount is also added to it.
If your AFNI is below $31,120, you get the maximum child benefit for every child i.e. $6,639 per year for children under 6 and $5,602 per year for children between 6 and 17.
If your AFNI is above $31,120 but below $67,427, for 1 child, your child benefit is reduced by 7% of your income above $31,120. For 2 children, it is reduced by 13.5%. There’s a 19% & 23% reduction for 3 children and 4(or more) respectively.
If your AFNI is above $67,426, your benefit is reduced by an amount of $2,541 + 3.2% of your income above $67,426 for 1 child. With 2 children, it is reduced by $4,901 + 5.7% of your income above $67,426. For 3 children, it is $6,898 + 8% and for 4(or more), it is $8,351 + 9.5%.
Marital Status of the parents also decides the child benefit admissible in Canada
The marital status of the parents is also an important factor for child benefit. For parents with shared custody, each parent would get 50% of the benefit that they would have got had they had full custody.
If your child lives with you part time, you need to find out if you are considered for shared custody and then apply accordingly.
Child Disability Benefit
If your child is disabled, you are eligible for an extra benefit. In the current year i.e. July 2019 – June 2020, you’d get an added benefit of $2,832 per year for every child with a disability.