The Tax-Free Child Disability Benefit

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The Child Disability Benefit (CDB) is a tax-free benefit for families who care for a child under age 18 who is eligible for the Disability Tax Credit  (DTC).

Not all children with a disability qualifies for the CDB.  To be eligible for the Child Disability Benefit, the child must have a severe and prolonged impairment in physical or mental functions. An impairment is prolonged if it has lasted, or is expected to last, for a continuous period of at least 12 months. A medical practitioner has to complete and certify that the child has a severe and prolonged impairment and must describe its effects on the Disability Tax Credit Certificate.  Once the Canada Revenue Agency (CRA) receives a completed Certificate, the CRA will advise you if the child is eligible for the Disability Tax Credit and the CDB supplement.

The CDB is paid monthly to individuals who are eligible for the Canada Child Benefit (CCB) and also as a supplement to the Children’s Special Allowances (CSA).  CDB qualified families receive up to $2,730 per year ($227.50 per month) per eligible child.  However, it is important to note that the CDB starts being reduced when the adjusted family net income (AFNI) is more than $65,000.  The reduction is 3.2{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of the amount of AFNI over 65,000 for families with one eligible child and 5.7{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} for families with two or more eligible children.

There are many programs available to help families who are supporting children with disabilities.  If you want to learn more about the Child Disability Benefit, or other credits and deductions that can help you and your family, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.


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