Child Disability Benefit

Do You Qualify For The Child Disability Benefit?

Former CRA Tax Expert Barry Ho specializes in helping Canadian families qualify for and claim their Disability Tax Credit and then claim the Child Disability Benefit. The Child Disability Benefit is designed to financially help families care for a child or children with disabilities who are under the age of 18.

Contact Barry online or call 1-855-546-9199 to see if you qualify for the Disability Tax Credit and Child Disability Benefit. All calls are private, confidential and do not cost you anything.

Real Child Disability Benefit Recipients

Mary B. from Vancouver BC

child disability tax credit and RDSP

As a caregiver for my grandson with ADD, Barry helped me get $18,000 for his condition. I am also getting CDB (Child Disability Benefits) Monthly.

Refund Received: $18,000 + Monthly CDB

 

(The following information exerpted from the Government of Canada, Service Canada, Child Disability Benefit internet site, January 2013.)

1. What is the Child Disability Benefit?

The Child Disability Benefit (CDB) is a tax-free benefit of up to $2,575 per year ($214.58 per month) for families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.

2. When is the Child Disability Benefit payment issued?

The CDB is paid monthly to individuals who are eligible for the Canada Child Tax Benefit (CCTB) and also as a supplement to the Children’s Special
Allowances (CSA).

3. Who can receive the Child Disability Benefit?

Families who are eligible for the CCTB for a child will receive the CDB only if the child is also eligible for the disability amount, also known as the Disability Tax Credit.

4. My child has a disability. Is my child eligible?

Not all children with disabilities are eligible for the disability amount. To be eligible a 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 qualified practitioner must certify on Form T2201, Disability Tax Credit Certificate, that the child’s impairment meets certain conditions. Once we receive a completed Form T2201, we will advise you if the child is eligible for the disability amount and the CDB supplement.

For more information about the disability amount, and other amounts you may be able to claim, see Guide RC4064, Medical and Disability-Related
Information – Includes Form T2201.

5. How do I apply for the Child Disability Benefit?

If you are eligible for the CCTB but you have not filed Form T2201, Disability Tax Credit Certificate, for a child who may be eligible for the CDB supplement, you must complete Part A and have Part B completed and signed by a qualified practitioner. Send the completed signed form to your tax centre. The Canada Revenue Agency (CRA) will determine whether or not you are eligible to receive the disability amount and the CDB supplement.

You can send the form to us at any time during the year.  By sending us your form before you file your tax return, you may prevent a delay in your assessment. We will review the application before we assess the return. Keep a copy of the completed form for your records.

If you have already applied for the Canada Child Tax Benefit (CCTB) for a child who is eligible for the disability amount, the CDB will be calculated automatically for the current and the two previous CCTB benefit years. Beyond these benefit years, a written request to the appropriate tax centre or tax services office will have to be submitted.

If you have not applied for the CCTB for your child, but have already filed Form T2201, complete and mail Form RC66, Canada Child Benefits Application to your tax centre. The CRA will determine whether or not you are eligible for the CCTB and the CDB supplement.

Fees

Any fees that a qualified practitioner may charge to complete and certify Form T2201 or to provide the CRA with additional information are your responsibility. These fees are not covered by the CRA or by provincial medicare plans, but you may be able to claim them as an eligible medical expense. See your tax package for details.

6. How is the Child Disability Benefit calculated?

For the period of July 2012 to June 2013, the CDB provides up to $2,575 per year ($214.58 per month) for each child who is eligible for the disability amount.

The CDB amount is calculated using a base amount, which is associated with the number of children for whom you receive the CCTB. You will receive the full CDB amount if your adjusted family net income is less than the base amount for your family size, as indicated in the chart below.

Number of children for whom you receive the CCTB

Number of children for whom you receive the CCTB Base amount
1 $42,707
2 $42,702
3 $42,686
4 $48,187
5 $53,689
6 $59,190
7 $64,692
8 $70,193
9 or more Contact the CRA

If your adjusted family net income is more than the base amount, your CDB will be reduced as follows:

  • If you have one child who is eligible for the CDB, the amount of CDB is reduced by 2% of your adjusted family net income that is more than the base amount for one child (see the above chart).
  • If you have two or more children who are eligible for the CDB, the amount of CDB is reduced by 4% of your adjusted family net income that is more than the base amount for the number of children for which you receive the CDB (see the above chart).

Example: Michelle and Steven are married with four children. Michelle receives the CCTB for all four children. Two of the children are eligible for the disability amount. Michelle and Steven have an adjusted family net income of $48,000.

The CDB will be calculated as follows:

Number of qualified dependants (2 × $2,575)  $5,150.00
Adjusted family net income $48,000
Subtract base amount - $46,871
Adjusted family net income that is more than the base amount $1,129
Subtract 4% of adjusted family net income that is more than the base amount (2,047 × 4%) - $45.16
Net annual Child Disability Benefit $5,104.84

7. How much income can I earn and still be entitled to the Child Disability Benefit?

You can determine the amount of income you can earn and still be entitled to the Child Disability Benefit by referring to our Child Disability Benefit Guideline Table.

One to four eligible dependants

Family net income ($) One eligible dependant ($/month) Two eligible dependants ($/month) Three eligible dependants ($/month) Four eligible dependants ($/month)
Under 41,544** 208.66 417.30 625.91 834.66
42,000 207.90 415.78 624.39 834.66
43,000 206.24 412.45 621.06 834.66
44,000 204.57 409.11 617.73 834.66
45,000 202.90 405.78 614.39 834.66
46,000 201.24 402.45 611.06 834.66
47,000 199.57 399.11 607.73 834.23
48,000 197.90 395.78 604.39 830.90
49,000 196.24 392.45 601.06 827.57
50,000 194.57 389.11 597.73 824.23
55,000 186.24 372.45 581.06 807.57
60,000 177.90 355.78 564.39 790.90
65,000 169.57 339.11 547.73 774.23
70,000 161.24 322.45 531.06 757.57
75,000 152.90 305.78 514.39 740.90
80,000 144.57 289.11 497.73 724.23
85,000 136.24 272.45 481.06 707.57
90,000 127.90 255.78 464.39 690.90
95,000 119.57 239.11 447.73 674.23
100,000 111.24 222.45 431.06 657.57
110,000 94.57 189.11 397.73 624.23
120,000 77.90 155.78 364.39 590.90
130,000 61.24 122.45 331.06 557.57
140,000 44.57 89.11 297.73 524.23
150,000 27.90 55.78 264.39 490.90
160,000 11.24 22.45 231.06 457.57
170,000 0.00 0.00 197.73 424.23
180,000 0.00 0.00 164.39 390.90
190,000 0.00 0.00 131.06 357.57
200,000 0.00 0.00 97.73 324.23
210,000 0.00 0.00 64.39 290.90
220,000 0.00 0.00 31.06 257.57
230,000 0.00 0.00 0.00 224.23
240,000 0.00 0.00 0.00 190.90
250,000 0.00 0.00 0.00 157.57
260,000 0.00 0.00 0.00 124.23
270,000 0.00 0.00 0.00 90.90
280,000 0.00 0.00 0.00 57.57
290,000 0.00 0.00 0.00 24.23
300,000 0.00 0.00 0.00 0.00

Five to eight eligible dependants

Family net income ($) Five eligible dependants ($/month) Six eligible dependants ($/month) Seven eligible dependants ($/month) Eight eligible dependants ($/month)
Under 41,544** 1,043.33 1,252.00 1,460.66 1,669.33
42,000 1,043.33 1,252.00 1,460.66 1,669.33
43,000 1,043.33 1,252.00 1,460.66 1,669.33
44,000 1,043.33 1,252.00 1,460.66 1,669.33
45,000 1,043.33 1,252.00 1,460.66 1,669.33
46,000 1,043.33 1,252.00 1,460.66 1,669.33
47,000 1,043.33 1,252.00 1,460.66 1,669.33
48,000 1,043.33 1,252.00 1,460.66 1,669.33
49,000 1,043.33 1,252.00 1,460.66 1,669.33
50,000 1,043.33 1,252.00 1,460.66 1,669.33
55,000 1,034.07 1,252.00 1,460.66 1,669.33
60,000 1,017.40 1,243.91 1,460.66 1,669.33
65,000 1,000.74 1,227.24 1,453.75 1,669.33
70,000 984.07 1,211.57 1,437.08 1,663.58
75,000 967.40 1,193.91 1,420.41 1,646.92
80,000 950.74 1,177.24 1,403.75 1,630.25
85,000 934.07 1,160.57 1,387.08 1,613.58
90,000 917.40 1,143.91 1,370.41 1,596.92
95,000 900.74 1,127.24 1,353.75 1,580.25
100,000 884.07 1,110.57 1,337.08 1,563.58
110,000 850.74 1,077.24 1,303.75 1,530.25
120,000 817.40 1,043.91 1,270.41 1,496.92
130,000 784.07 1,010.57 1,237.08 1,463.58
140,000 750.74 977.24 1,203.75 1,430.25
150,000 717.40 943.91 1,170.41 1,396.92
160,000 684.07 910.57 1,137.08 1,363.58
170,000 650.74 877.24 1,103.75 1,330.25
180,000 617.40 843.91 1,070.41 1,296.92
190,000 584.07 810.57 1,037.08 1,263.58
200,000 550.74 777.24 1,003.75 1,230.25
210,000 517.40 743.91 970.41 1,196.92
220,000 484.07 710.57 937.08 1,163.58
230,000 450.74 677.24 903.75 1,130.25
240,000 417.40 643.91 870.41 1,096.92
250,000 384.07 610.57 837.08 1,063.58
260,000 350.41 577.24 803.75 1,030.25
270,000 317.40 543.91 770.41 996.92
280,000 284.07 510.57 737.08 963.58
290,000 250.74 477.24 703.75 930.25
300,000 217.40 443.91 670.41 896.92
310,000 184.07 410.57 637.08 863.58
320,000 150.74 377.24 603.75 830.25
330,000 117.40 343.91 570.41 796.92
340,000 84.07 310.57 537.08 763.08
350,000 50.74 277.24 503.75 730.25
360,000 17.40 243.91 470.41 696.92
370,000 0.00 210.57 437.08 663.58
380,000 0.00 177.24 403.75 630.25
390,000 0.00 143.91 370.41 596.92
400,000 0.00 110.57 337.08 563.58
425,000 0.00 27.24 253.75 480.25
450,000 0.00 0.00 170.41 396.92
475,000 0.00 0.00 87.08 313.58
500,000 0.00 0.00 3.75 230.25
525,000 0.00 0.00 0.00 146.92
550,000 0.00 0.00 0.00 63.58
575,000 0.00 0.00 0.00 0.00

** The CDB base threshold is determined by the total number of children eligible for the CCTB as follows:

Number of children Base threshold
1 $41,544
2 $41,536
3 $41,520
4 $46,871
5 $52,222
6 $57,574
7 $62,925
8 $68,276

The CDB base amount is calculated using the formula:

F/H + $24,183 where:

  • F is the annual entitlement of the NCBS amounts for each child.
  • H equals the NCBS annual reduction rate for the total number of children.