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Posted by Tax Consultants

2015 BC Early Childhood Tax Benefit

To receive the new benefit in 2015, parents need to file their annual income tax returns, starting with the 2013 tax year, and apply for the Canada Child Tax Benefit.

In 2015, the BC government is introducing the new BC Early Childhood Tax Benefit. The BC Early Childhood Tax Benefit, is a tax-free monthly payment of up to a maximum of $55 per month – or $660 dollars per year – for each child under the age of six.

Benefits are based on the number of children in the family and the family’s net income. The maximum benefit will be available to eligible families with family net incomes under $100,000. The benefit will start to phase out at $100,000 and will be fully phased out at $150,000.

Single Parent with One Child Under the Age of 6
Family Net Income $25,000 $50,000 $80,000 $125,000 $150,000
BC Early Childhood Tax Benefit 660 660 660 330 0
Canada Child Tax Benefit 1,433 1,304 704 0 0
Federal Universal Child Care Benefit 1,200 1,200 1,200 1,200 1,200
Federal National Child Benefit Supplement 2,221 0 0 0 0
Total Annual Benefit 5,514 3,164 2,564 1,530 1,200

 

Couple with Two Children Under the Age of 6
Family Net Income $25,000 $50,000 $80,000 $125,000 $150,000
BC Early Childhood Tax Benefit 1,320 1,320 1,320 660 0
Canada Child Tax Benefit 2,866 2,208 1,008 0 0
Federal Universal Child Care Benefit 2,400 2,400 2,400 2,400 2,400
Federal National Child Benefit Supplement 3,117 0 0 0 0
Total Annual Benefit 9,703 5,928 4,728 3,060 2,400

 

Benefits from this program will be combined with the federal Canada Child Tax Benefit (CCTB) and the BC family bonus program into a single monthly payment. The Canada Revenue Agency (CRA) will administer the BC Early Childhood Tax Benefit program for the province, with payments starting in April 2015. To be eligible to receive the benefit, parents must file their 2013 personal income tax returns even if they have no income to report.

You don’t need to apply separately for the BC Early Childhood Tax Benefit. When you apply for the CCTB , the CRA will use the information from your CCTB application to determine your eligibility. If you’re eligible, the amount of any payments will be calculated automatically based on information from the tax returns you (and your spouse or common-law partner) have filed