Canada Revenue Agency (CRA) manages a benefit designed for families who have under 18 years old children with disabilities. Read this Child Disability Benefit review to see how it works in Canada.

Also, it is important to address what a disability is. So, a disability is a mental or physical condition of the body that makes people interact with the world in a different way. 

Since, in reality, the world is designed to support people without disabilities, institutional actions must be taken in order to provide inclusion and guarantee benefits and rights to support people with disabilities and their families. 

Therefore, Canada provides tax-free monthly payments for those families. Now, keep reading to learn how it works, what the eligibility requirements are, and how much to expect to receive.

The Child Disability Benefit (CDB) is managed by Canada Revenue Agency (CRA) and designed for families who have a child under 18 years old with disabilities.

A disability is a mental or physical condition of the body that makes a person interact differently with the world. 

In this case, the benefit is only applied for severe and prolonged impairment disabilities, which include mental or physical functions of the body.

Also, CDB can only be requested if the family is already eligible for the Canada Child Benefit (CCB). 

The CCB is a benefit also administered by the CRA and related to other provincial programs.

You must be a resident of Canada and primarily responsible for under 18 years old children. 

Furthermore, to receive the Child Disability Benefit you need to be eligible for the Disability Tax Credit (DTC).

The DTC is a tax credit that helps people to reduce the amount of income tax required to be paid. In addition, it is non-refundable and designed for those with impairments or those who support a family member with disabilities.

After being eligible for the CCB and DTC, you can be eligible for the CDB. Actually, you don’t even need to apply since the payments will be automatically done. 

The Child Disability Benefit is paid in monthly payments, and they are tax-free.

Furthermore, the payments are calculated based on marital status, the number of eligible children, and adjusted family net income or AFNI.

Therefore, as your AFNI increases, the payments reduce. The payments are also adjusted if any of those items above changes.

Moreover, it is important to always do your taxes on time every year, the same way it is essential to maintain your information updated with the CRA. These will guarantee that you continue receiving the benefit.

The Child Disability Benefit (CDB) provides tax-free monthly payments for families who take care of under 18 years old child with a prolonged or severe impairment that could be a physical or mental condition.

Also, you need to be eligible for both Canada child benefit (CCB) and Disability Tax Credit (DTC) to automatically receive the payments.

Let’s review the key features of the Child Disability Benefit offered by the Government of Canada. 

As mentioned above, the payments are calculated based on your marital status, the number of eligible children, and adjusted family net income (AFNI).

Also, the payments are adjusted every July.

And as your data changes like AFNI increases, the payments will be reduced from 3.2% to 5.7% of the amount of adjusted family net income greater than $71,060.

Now, learn how to get the Child Disability Benefit by reading our next post!