Child Tax Changes
Ottawa is revamping tax benefits for families with young children by putting more money in the wallets of low- and middle-income families starting in July.
However, the changes announced Tuesday in the federal budget will see families earning more than $150,000 a year generally receive less under the new Canada Child Benefit program.
Finance Minister Bill Morneau said nine out of 10 families will receive more than they do under the existing programs.
“That is money in the pockets of Mom and Dad,” he said. “Money that can go directly to eating healthier food, paying the rent and buying new clothes for back to school.”
The new program will pay up to $6,400 per child under six and up to $5,400 per child for those aged six through 17. However, the benefits begin to phase out starting at $30,000 in net family income.
Under the current system, families with $30,000 in net income and one child under six would have received $4,852 in child benefits and $3,916 if the child is six through 17.
Personally, I found this calculator the most helpful to see what changes would affect our family:
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