Parenthood is exciting, yet financially stressful. No doubt, providing for your child’s health, feeding, education and future can be back-breaking.

Luckily, the Canadian government is fully aware of this and offers many ways for families to meet financial responsibilities. This allows saving money through tax deductions and tax credits.

So, stick with me and find out the variety of tax relief and benefits you can enjoy as a family living in Canada.

1. Canada Child Benefit (CCB)

Filing your taxes annually as a parent makes you eligible for the Canada Child Benefit. This is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. The payment is offered to help them with the cost of raising children. 

If your adjusted family net income (AFNI) is under $32,797, you could get as much as $6,997 yearly ($583.08 per month) for each child under 6 years of age. For children between the ages of 6 to 17 years, a maximum of $5,903 per year ($491.91 monthly) can be claimed.

If you’re a single parent, the parent with custody is the one who receives the benefit.

2. GST/HST credit

The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free payment that helps families with low and modest incomes offset the GST or HST they pay.

You are automatically considered for the GST/HST credit when you file your taxes. If you qualify, you’ll receive quarterly payments in July, October, January, and April.

Amounts receivable are based on your family’s net income and the number of children you have registered.

3. Climate Action Incentive Payment (CAIP)

The CAIP is a tax-free amount paid to help individuals and families offset the cost of federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba and Ontario. It consists of a basic amount and a supplement for residents of small and rural communities. You don’t need to apply to receive the payment for the CAIP. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return and will send you payments if you’re entitled to them.

4. Childcare Expenses

One great way to reduce the amount of taxes you’ll owe the CRA or maximize your refund is to claim the amount you spent on childcare for children under the age of 16. Childcare expenses are amounts that you may pay to have someone look after your child such as payment for;

• Nannies and babysitters; 
• Day nursery schools and daycare centers; 
• Educational institutions that provide childcare services; 
• Day camps and day sports schools with a primary goal of childcare; 
• Boarding schools or camps where lodging is involved 

All these expenses can be claimed and used to reduce your tax liability. But you must provide the receipts of such payment and the Social Insurance Numbers (SIN) of the child caregivers.

5. Childcare with disability benefits

The Child Disability Benefit (CDB) is a tax-free monthly payment made to families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.

It is a tax-free monthly payment of up to $2,915 annually (July 2021 to June 2022) and $2,985 annually (July 2022 to June 2023) for each child who is eligible for the Disability Tax Credit. Payment amounts depend on the number of eligible children, adjusted family net income, and marital status.

If you are already getting the Canada Child Benefit for your child who is eligible for the Disability Tax Credit, you do not need to apply separately for the Child Disability Benefit; as your child will be automatically considered a beneficiary.

6. Canada Workers Benefit

If you are a low-income worker, then you can enjoy this benefit, which is a refundable tax credit you can claim when you file your taxes. The benefit offers up to $1,381 for single individuals and $2,379 for families. Once your individual net income is more than $24,573 or family net income is over $37,173, you no longer qualify for the CWB. Maximum amounts are also different for residents in Alberta, Nunavut, and Quebec.

7. Other Provincial and territorial programs

In addition to the general tax benefits granted by the Canadian government to families resident in Canada, each province provides support programs for its residents. For example, British Columbia’s family benefit scheme offers fixed payments to each child per month depending on the level of your adjusted family net income.

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