In Canada there are many federal tax benefits for families and individuals. Most of the tax benefits are for people with modest or low incomes. Here are some of these benefits:
- Canada Child Tax Benefit (CCTB)
- Universal Child Care Benefit (UCCB)
- National Child Benefit Supplement (NCBS)
- Child Disability Benefit (CDB)
- GST/HST Credit Program
- Working Income Tax Benefit (WITB)
Canada Child Tax Benefit (CCTB)
The Canada Child Tax Benefit (CCTB) is a non-taxable amount of money paid monthly to low or modest income families with children under 18 years of age. This money helps families with the costs of raising children.
Applying for CCTB
There are different ways to apply for the CCTB depending on whether your child was born outside of Canada, or here in PEI.
If your child was born outside of Canada, you need to fill in the following forms [See Related Resources]:
- Canada Child Tax Benefit Application
- Status in Canada / Statement of Income
- Canada Child Tax Benefit - Statement of Income
You need to provide proof of birth with your application. A photocopy of your child's Confirmation of Permanent Residence (IMM5452) or Permanent Resident Card issued by Citizenship and Immigration Canada is considered proof of birth.
You should mail all the completed forms along with a copy of your child's proof of birth to the Summerside Tax Centre. [See Related Resources]
If your child is born in PEI, you can apply for the CCTB using the Automated Benefits Application (ABA) service. All the information you need to use the ABA service is in the PEI birth registration package. This package is given to you in the hospital when your baby is born.
Universal Child Care Benefit (UCCB)
The Universal Child Care Benefit (UCCB) is for families with children under the age of six years. This benefit is open to all Canadian families, regardless of your income.
You receive $100 per month to help balance work and raising small children. This money is taxable.
Applying for UCCB
If you have applied for the CCTB and have children under the age of six, you are automatically added to the UCCB program. In other words, you do not have to apply for the UCCB separately.
If you have never applied for the CCTB, have children under the age of six, and wish to receive the UCCB, you should go through the CCTB application process.
National Child Benefit Supplement (NCBS)
National Child Benefit Supplement (NCBS) is a monthly amount of money paid to low-income families with children under 18 years of age.
Applying for NCBS
If you have applied for the CCTB, the Canada Revenue Agency automatically determines if you are eligible for the NCBS, and there is no need to apply for it separately.
Child Disability Benefit (CDB)
The Child Disability Benefit (CDB) is a tax-free monthly amount of money paid to families who care for a child under the age of 18 with severe physical or intellectual disabilities.
Applying for CDB
In order to receive the CDB, you must complete the Disability Tax Credit Certificate [See Related Resources]. You fill in Part A of the form and get Part B completed by a qualified practitioner. Then you send the completed form to the Summerside Tax Centre.
GST/HST Credit Program
The Goods and Services Tax (GST) or Harmonized Sales Tax (HST) is a tax you pay when you buy things in Canada. The GST/HST Credit Program is a tax-free quarterly payment which helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay.
Applying for GST/HST Credit
If you are a new resident of Canada and you want to apply for the GST/HST credit, complete the 'GST/HST Credit Application for Individuals Who Become Residents of Canada' form. [See Related Resources]
Fill in your application form and mail it into the Summerside Tax Centre.
Working Income Tax Benefit (WITB)
The Working Income Tax Benefit (WITB) is a refundable tax credit to give tax relief for eligible low income individuals and families who are in the workforce.
Applying for WITB
You can claim the WITB on your Income Tax and Benefit Return. However, eligible individuals and families may apply for advance payments.