If you see the “Canada Fed” title show up on your bank statement, you are likely receiving a direct deposit payment from the Canada Revenue Agency (CRA) for one or more of the following programs:
- Canada Workers Benefit
- Canada Child Benefit
- Child Disability Benefit
- Goods and Service Tax Credit
- Climate Action Incentive Payment
You will only receive a deposit in your bank account if you have signed up for direct deposit through the CRA. If you receive multiple benefits from the federal government, you may get a lump sum amount with the “Canada Fed” title. When and how often you receive payments will depend on the benefits you receive.
Canada Fed: Benefit Programs
Listed below are the benefits programs included in the Canada Fed payment.
1. Canada Workers Benefit (CWB)
The Canada Workers Benefit is a refundable tax credit designed to help low-income working families and individuals. This benefit is made up of two parts:
- Basic amount
- Disability supplement
As of July 2023, those eligible for CWB can receive advance payments equal to 50% of the CWB across three payments under the Advance Canada workers benefit (ACWB).
The purpose of the advanced payment is to help Canadians deal with the rising cost of living. If you receive CWB in 2023, you will receive the advanced payment automatically. You don’t need to apply.
Basic CWB payments
The maximum basic amount for CWB is:
- $1,428 for single individuals
- $2,261 for families
The amounts are gradually reduced as your income goes up over a certain amount.
For individuals, payments are reduced if your net income is more than $23,495. You won’t receive a payment if your adjusted net income is more than $33,015.
For families, payments will gradually reduce if you make more than $26,805, and you won’t receive a payment if the adjusted family net income is above $43,212.
Note that the maximum basic CWB amount varies for residents in Quebec, Nunavut, and Alberta.
Disability Supplement payments
The maximum amount for the disability supplement is:
- $737 for single individuals
- $737 for families
The individual supplement is gradually reduced if your adjusted net income is above $33,018. You won’t receive a payment if it’s above $37,932.
For families, payments start to reduce gradually if your adjusted net family income is above $43,210. There is no payment made if:
- One spouse is eligible for the disability tax credit, and your adjusted net family income is more than $48,124 OR
- Both spouses are eligible for the disability tax credit if adjusted family net income is more than $53,037.
Note the maximum amount for the disability supplement varies for residents of Quebec and Nunavut.
Advanced payment dates
- January 12, 2024
- July 12, 2024
- October 11, 2024
2. Canada Child Benefit (CCB)
The Canada Child Benefit is a tax-free monthly payment created by the Canadian federal government to help eligible families cover the costs of raising children under 18 years.
CCB Payments
How much you can receive through CCB depends on:
- How many children are in your care
- Age of your children
- Marital status
- Adjusted family net income (AFNI) for 2022
- Child’s eligibility for the disability tax credit
To estimate your child benefits, you can use the government’s child and family benefits calculator.
Maximum child benefits are:
- $7,437 per year ($619.75 per month) for each eligible child under the age of six
- $6,275 per year ($522.91 per month) for each eligible child aged 6 to 17
If your AFNI is over $34,863, the amount you receive will start to reduce.
CCB Payment dates
- January 19, 2024
- February 20, 2024
- March 20, 2024
- April 19, 2024
- May 17, 2024
- June 20, 2024
- July 19, 2024
- August 20, 2024
- September 20, 2024
- October 18, 2024
- November 20, 2024
- December 13, 2024
3. Child Disability Benefit (CDB)
The child disability benefit is another tax-free payment for families who care for a child under 18 with a physical or mental impairment.
CDB Payments
The CDB provides up to $3,173 per year ($261.41 per month) for each eligible child. The benefit starts to gradually reduce when your AFNI is greater than $75,537.
Your benefits are recalculated every July based on your AFNI from the previous year.
CDB Payment dates
The child disability benefit is paid out with the Canada child benefit each month around the 20th.
4. Goods and Service Tax/Harmonized Sales Tax Credit (GST/HST)
The GST/HST credit is a tax-free benefit that is paid quarterly to low and modest-income families and individuals.
The purpose is to help Canadians offset the GST or HST costs they pay. You might also receive payments from provincial or territorial programs. You don’t have to sign up for the GST/HST tax credit. You are automatically considered for it when you file your income tax return.
GST/HST Payments
GST/HST payments are based on the following:
- Adjusted family net income
- Number of children under 19 years old that are registered for the CCB and the GST/HST credit
For the July 2023 to June 2024 payment period, you can get up to:
- $496 if you are single
- $650 if you are married or common-law
- $171 for each child under the age of 19
GST/HST Payment dates
- January 15, 2024
- April 15, 2024
- July 15, 2024
- October 15, 2024
5. Climate Action Incentive Payment (CAIP)
The climate action incentive payment is a tax-free payment available to residents in Alberta, Saskatchewan, Manitoba, and Ontario. The purpose of the benefit is to help offset the cost of federal pollution pricing. The benefit consists of two parts:
- Basic amount
- Supplement for residents in small/rural communities
As of July 2023, residents in Newfoundland, Nova Scotia, and Prince Edward Island are eligible for a federal fuel charge. This benefit is paid out in three quarterly payments and four in the years after.
The federal government is also providing a backstop fuel charge to eligible residents in New Brunswick starting in July 2023. Residents can expect a double payment in October 2023 to cover the July/October 2023 payments and another payment in January 2024.
CAIP Payments
How much you receive depends on:
- Family situation (individual, spouse, common-law, children)
- Province of residence
You can visit the Government of Canada website to see how much you can expect to receive.
The CAIP payment is universal. This means the benefit will not be reduced based on adjusted family net income.
CAIP Payment dates
- January 15, 2024
- April 15, 2024
- July 15, 2024
- October 15, 2024
Am I Eligible For Canada Fed Deposits?
Each federal benefit program has specific eligibility requirements that you must meet to qualify for a Canada Fed payment. Use the following details to see if you are eligible for the Canada Fed deposit.
Canada Workers Benefit (CWB)
You are eligible for the basic amount of CWB if you meet the following conditions:
- You are a resident of Canada throughout the year
- Employed and earning income
- After-tax income is below the level set by your province or territory.
- 19 years or older as of December 31st, or you live with your spouse, common-law partner, or child.
You are eligible for the disability supplement amount of CWB if you meet the following conditions:
- You are eligible for the disability tax credit
- You have an approved T2201, Disability Tax Credit Certificate on file with the CRA
- Net income is below the level set by your province or territory.
Canada Child Benefit (CCB)
You are eligible for the CCB if you meet all of the following criteria:
- You are a resident of Canada
- Live with a child under 18 years old
- You are primarily responsible for raising and caring for the child
- You, your spouse or common-law partner are: 1) Canadian citizen, 2) Permanent resident, 3) Protected person, 4) Temporary resident who has lived in Canada for the past 18 months and has a valid permit obtained in the 19th month or 5) Registered, or entitled to be registered under the Indian Act
Child Disability Benefit (CDB)
To qualify for the CDB:
- You are eligible for the CCB
- Your child must be eligible for the disability tax credit (DTC)
The DTC is a tax credit that assists people with impairments, or those who are supporting their family members to reduce the amount of income tax they have to pay.
If you already receive the CCB for your child who is eligible for DTC, you will get the CDB automatically. You don’t need to apply.
Goods and Service Tax Credit (GST/HST)
To receive the GST/HST credit, you must:
- Be a resident of Canada
- At least 19 years old or meet one of the following conditions: 1) Have (or had) a spouse or common-law partner or 2) You are (or were) a parent and lived (or lived) with your child
Climate Action Incentive Payment (CAIP)
You can qualify for the basic CAIP if you:
- Are a resident of Canada
- Are a resident of a participating province (Alberta, Saskatchewan, Manitoba, and Ontario)
- At least 19 years of age, or meet one of the following conditions: 1) Have (or had) a spouse or common-law partner or 2) You are (or were) a parent and lived (or lived) with your child
You might have a child eligible for CAIP if they meet all of the following conditions:
- Under 19 years of age
- The child lives with you
- You are the primary caregiver
- Your child is registered for CCB
To qualify for CAIP supplements, residents in small and rural communities must claim it on their income tax and benefit forms.
In PEI, the rural supplement is already included in the basic CAIP amount so residents don’t have to claim it on their annual tax return.
How to Receive My Canada Fed Deposit Payments?
To receive Canada fed deposit payments, it’s important you file your annual tax return on time every year, even if you didn’t make any income. Specific criteria for each benefit are listed below:
CWB
To claim this benefit you can:
- Electronically file your taxes
- File a paper return, fill out and submit Schedule 6, Canada workers benefit.
To claim the disability supplement:
- If you have an eligible spouse and one of you is eligible for the disability tax credit, that person should claim the basic amount and disability supplement
- If you have an eligible spouse and you’re both eligible for the disability tax credit, only one of you can claim the basic amount. Each of you must claim the disability supplement on a separate Schedule 6.
CCB and CDB
There are a few different ways to apply for CCB:
- Mothers of a newborn can use the Automated Benefits Application which is available in all provinces and territories except Nunavut
- You can apply by logging into “My Account” and selecting “Apply for child benefits”
- You can send Form RC66, Canada Child Benefits Application
To remain eligible for CCB and CDB, you need to do your taxes on time every year, even if you don’t have any income or all of your income is tax-exempt. If you have a spouse or common-law partner, they also have to file their taxes on time.
GST/HST
To claim the GST/HST tax credit, you need to file your annual tax return every year, even if you have no income.
If you are a new resident of Canada, you can receive the GST/HST credit before you file your taxes. You need to:
- Complete Form RC66, Canada Child Benefits Application to apply for all child and family benefits
- If you don’t have kids, fill out Form RC151, GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Became Residents of Canada.
- Mail your completed form to your tax centre.
CAIP
You don’t need to apply to receive CAIP. The CRA will determine your eligibility based on your income taxes and benefit return.
If you are married or have a common-law partner, only one of you is eligible for the credit for the family. Whoever files their taxes first, gets the payment and the amount is the same regardless of who receives it.
Canada Fed Deposit FAQs
Are Canada Fed payments taxable?
The Canada Fed payments are non-taxable except for the Canada Workers Benefit (CWB) which is considered taxable income.
What is a refundable tax credit?
A refundable tax credit is an amount you receive regardless of how much income tax you pay. With a refundable tax credit, it’s possible to receive a tax refund. For instance, the Canada Workers Benefit is a refundable tax credit.
What is a non-refundable tax credit?
A non-refundable tax credit can reduce your federal income tax but won’t create a tax refund. For instance, you can claim a federal and provincial basic personal amount on your income taxes. This amount increases each year and is meant to help low-income taxpayers.
What is the Canada PRO deposit?
The Canada PRO deposit is short for “Canada Provincial.” These are payments funded by the Ontario and Alberta provincial governments. For instance, the Ontario trillium benefit (OTB) is funded by the Ontario government. The Alberta child and family benefit (ACFB) is a tax-free payment funded by the Alberta government.
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