Can Families Leaving Canada Still Receive the Child Tax Benefit?

This article explores the eligibility of Canadian families to continue receiving the Child Tax Benefit (CTB), now known as the Canada Child Benefit (CCB), when they leave the country.

Overview of the Canada Child Benefit (CCB)

The Canada Child Benefit (CCB) is a tax-free, monthly payment intended to assist eligible families with the cost of raising children. Introduced in 2016, it replaced the previous Child Tax Benefit. The CCB is designed to support Canadian families, but certain conditions apply for continued eligibility, particularly if a family decides to leave the country.

Factors Affecting Eligibility

Several factors determine whether a family can continue receiving the CCB after leaving Canada:

Residency Status

For a family to remain eligible for the CCB, they must continue to be considered residents of Canada for tax purposes. This generally means maintaining a significant residential tie to the country.

Duration of Absence

If the family is temporarily living abroad for work, study, or other legitimate reasons, they may still qualify for the benefit provided they maintain their residency ties.

Income Level

The CCB amount is based on family income. Significant changes in income following departure from Canada can affect the benefit amount.

Notification Requirements

Any changes in residency status or address must be reported to the Canada Revenue Agency (CRA). Failure to do so can result in overpayments that must be repaid.

What Happens Upon Departure?

If a family is no longer considered residents of Canada, their eligibility for the CCB will generally cease. As such, families and individuals are advised to consult the CRA or a tax professional for personalized guidance based on their specific circumstances.

Canadian Tax Law and Its Implications

It’s important to understand that Canadian taxpayers pay for the CCB to support children in the country. Foreign nationals cannot claim CCB benefits for children not residing in Canada. This is due to the Canadian tax laws which stipulate that benefits are only available to children living in Canada.

Eligibility Criteria for CCB

Canadian tax laws clearly state that to be eligible for the CCB:

You must live with the child and the child must be under 18 years of age. You must be the person primarily responsible for the care and upbringing of the child. If a child does not live with you all the time, see If you share custody of a child. You must be a resident of Canada for tax purposes.

Families residing temporarily abroad can continue to receive the CCB and related provincial or territorial benefits as long as they file a return each year to allow the CRA to calculate the benefit.

Understanding these criteria is crucial for families planning to leave Canada to ensure they can continue to receive the necessary financial support for their children.