The more tax credits you can take advantage of, the lower your taxable income will be.
There are some refundable tax credits you can use even if you don’t owe any taxes. Keep reading to discover an important tax tip if you’re self-employed and have children.
What Is the Canada Child Benefit?
The Canada Child Benefit (CCB) is a tax-free monthly payment that eligible families receive to help them with the cost of raising children under 18 years of age.
There are also provincial and territorial child benefits available.
Tax credits paid through the CCB are based on how much you make, not how you make it, so self-employed individuals can still qualify for the CCB.
This benefit is paid to the primary caregiver of the child as long as you or your spouse or common-law partner is a Canadian citizen or a permanent resident, protected person or temporary resident who has lived in Canada for the last 18 months.
How do I get the Canada Child Benefit?
To get the CCB you need to file a tax return every year, even if you did not make any money in that year. If you have a spouse or common-law partner, they need to file a tax return every year as well.
The Canada Revenue Agency uses the information from your income tax returns to determine how much your monthly CCB payments will be. The CCB tax credits are paid out over a 12-month period from July of one year to June of the next. Every July your CCB tax benefits are recalculated based on the income tax information sent in from the previous year.
To find out how much your payments will be and when you'll receive them, check My Account.
FBC – Helping Canadian Business Owners Optimize Tax Returns
To find out which tax credits you qualify for, contact the tax professionals at FBC.
Why FBC? Since 1952, we've worked exclusively with Canadian small business owners, farm operators and independent contractors to optimize their tax returns.
To learn more about how we can help keep more money in your pocket, call us today at 1-800-265-1002 or submit an online form to request an appointment.