Business & Investment

CRA Relief: Did you get a child under the age of 18?You can get almost $ 7,000 in 2021

The Canada Child Tax Benefit (CCB) is one of the government programs that received special mention in the Fall 2020 Economic Statement released by Canada’s Deputy Minister and Finance Minister Chrystia Freeland. The latest federal economic package was better news for Canadians with young families.

Starting July 2021, the CCB basic benefit is $ 6,833 per child under the age of six. For children ages 6-17, the basic CCB benefit per child is $ 5,765. Remember that this particular benefit increase will take effect every July, the beginning of the payment program year. Because CCB is an income-tested benefits program Actual benefit amount Indefinite.

Income threshold

The Canada Revenue Agency (CRA) calculates CCB benefits based on adjusted family net income (AFNI). In 2021, the phased abolition of AFNI will begin at $ 32,028, up from $ 31,711 last year. Keep in mind that CCB benefits decrease as AFNI crosses the income class.

If AFNI does not exceed the $ 32,028 income standard, the family will receive the maximum benefit. However, if AFNI is above $ 32,028 to $ 69,395, the second phase abolition will reduce CCB’s annual benefits by 7%. The reduction rate increases with AFNI and the number of children covered.

The CRA will allocate a fixed percentage after the second phase abolition, in addition to the base amount per eligible child. In terms of child disability allowances, the maximum amount in 2021 is $ 2,915 and the phasing out AFNI is $ 69,935. For eligible CCB recipients, the government will also offer a temporary benefit of $ 1,200 per child under the age of six this year.

Increase household income

Canadian families can further increase their household income through dividend investment. Among the beneficial options are renewable energy companies. Algonquin Power & Utilities (TSX: AQN)(NYSE: AQN) Is a $ 12.5 billion utility company operating primarily in the United States.

This utility stock too TSXA stable performer in 2020. Algonquin rewarded investors with a decent 3.8% dividend plus a total return of 19%. Due to the regulation of renewable energy assets, the company generates stable cash flow and consistently reports on long-term revenue growth.

Moreover, given that utilities are an essential service every day, Algonquin’s business is resilient, if not low-risk. I wrote that after the US presidential election in November 2020, Algonquin will play an important role when the Biden administration begins its fight against climate change.

The United States will rejoin the Paris Agreement as Country 46 on Joe Biden’s first official day.th Officially elected president.When he Clean energy revolution Beginning, Algonquin is ready to face the challenge. The company has allocated $ 9.2 billion to its five-year capital program.

Algonquin invests more in regulated service groups while allocating spending budgets to renewable energy groups. This utility should be the next buy-and-hold stock for income investors.

Reasons to claim CCB

CCB has four salient features.

  1. The program is simple because you pay once a month.
  2. CCB is tax exempt, so the recipient does not pay tax on any payments received.
  3. The low- and middle-income groups, the groups most in need of CCB, can get higher profits.
  4. On average, the family CCB payment of about $ 6,800 per year.

So if you have children under the age of 18, don’t miss this benefit.

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Stupid contributor Christopher Liu There are no positions in any of the listed stocks.

CRA Relief: Did you get a child under the age of 18?You can get almost $ 7,000 in 2021

https://www.fool.ca/2021/01/06/cra-relief-got-a-child-under-18-you-can-get-almost-7000-in-2021/ CRA Relief: Did you get a child under the age of 18?You can get almost $ 7,000 in 2021

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