# Will we have to return child care and other benefits next year?



## happy_guy (Mar 26, 2016)

Dear All,

My wife and I have some concerns about the child care and other benefits we have been receiving for our daughter who is 4.5 years old.

We, 3 of us, came to Ontario, Canada, as new immigrants in October of last year (2015). Then we started receiving child care and other benefits and it was a good amount every month since none of us were employed. 

In February of 2016, we filed our taxes for the previous year (basically, for October-December of 2015). In June/July of 2016, when the benefits were re-calculated by the Government based on our tax files, the newly calculated benefits were still good in amount apparently due to the fact that our financial data in the files were only up to December-2015.

The problem is that I got a well-paying job in April of 2016 (salary around $80K) and that we will keep receiving the same benefits until June/July of 2017 (the time when benefits will be re-calculated again).

Therefore, I wonder whether the Government will ask us to return some of the benefits.

Kindly answer, anyone with similar experience. 

Thanks.


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## mordko (Jan 23, 2016)

Yes. You will fill in your tax return and the government will reassess that you owe them.


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## carverman (Nov 8, 2010)

happy_guy said:


> Dear All,
> 
> We, 3 of us, came to Ontario, Canada, as new immigrants in October of last year (2015). Then we started receiving child care and other benefits and it was a *good amount every month since none of us were employed.
> *
> ...


There probably will be a recalculation from the point in time you started working and earning a salary some adjustment required to the child benefits...a letter of explanation and some proof to CRA when you were hired and started working may need to be submitted as well with your next return., so the phase out would start only in the months you started working and drawing a salary. (I would think). 

Whether you have to return some of it depends on CRA, and how they calculate what you owe them, as there is a formula for reducing the Child tax benefits based on your NET family income. (not gross income)
in other words, your taxable income. 

excerpt from the CRA online publication: 



> The maximum annual benefit for a *child under the age of six is $6,400* and $5,400 per child aged 6 through 17.
> 
> This benefit will start to be reduced (*phased out) if your adjusted family net income is more than $30,000.* The phase-out rate will be determined by the number of eligible children in your family and your *adjusted family net income (AFNI*) as outlined in the table below.
> 
> ...



www.cra-arc.gc.ca/gncy/bdgt/2016/qa01-eng.html



> The problem is that I got a well-paying job in April of 2016 (salary around $80K) and that we will keep receiving the same benefits until June/July of 2017 (the time when benefits will be re-calculated again).
> 
> Therefore, I wonder whether the Government will ask us to return some of the benefits.


Yes there will be a phase out of some of the child benefits IF your NET FAMILY INCOME is $30,000 or over, once you started working and if you are STILL RECEIVING the *same amount of child benefits as before*, when you were NOT working.


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## happy_guy (Mar 26, 2016)

Wow, informative! Thanks.... We can now prepare ourselves for what's up ahead.


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## marina628 (Dec 14, 2010)

Congrats on getting a great job so quickly


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## happy_guy (Mar 26, 2016)

lol


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## nortel'd (Mar 20, 2012)

Congratulation on securing employment. 

I do not think the Government will ask you to repay any CCB benefits. 

Why? 

The Canada Revenue Agency uses information from your income tax and benefit return to calculate how much your CCB payments will be. To get the CCB, you have to file your return every year, even if you did not have income in the year. If you have a spouse or common-law partner, they also have to file a return every year.

The CCB payments you are receiving today are based on “you and your wife’s 2015 adjusted family net income”. Benefits are paid over a 12-month period from July of one year to June of the next year. Your benefit payments will be recalculated every July based on information from your income tax and benefit return from the previous year.

Just make sure you and your wife file your T1 General 2016 Income Tax and Benefit Returns on or before midnight May 01, 2017. The government (CRA) will reassess a new CCB payment that will begin on July 20, 2017.

Based on your possible 2016 income from employment of $60,000 ($80,000/12 x 9), your July 2017 to June 2017 CCB payments will decrease on July 20, 2017. Since your little girl is under 6 during 2016, your CCB will drop from $533/m to $195/m. :sorrow: The only saving grace ... CCB payments are tax free. :joyous:


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## nortel'd (Mar 20, 2012)

OOPS .... I tried to but it seems the edit function will not allow me to edit the last two inches of my post and damn it ... I have a typo in the area ... Based on your possible 2016 income from employment of $60,000 ($80,000/12 x 9), your July 2017 to June 2018 CCB payments will decrease ......


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## lonewolf :) (Sep 13, 2016)

Happy guy, happy you got a job not happy with the government handing out benefits to those entering the country.
Europe is a mess with all the Muslim immigrants moving there for the free benefits.

Years ago most people when they came into hard times & had to go on welfare would pay back the welfare as they did not like being supported. When the Europeans crossed the pond years ago they never got handouts & free benefits. 

Now days the government brings people in to the country gives them benefits & they don't give the benefits as a loan. It is the right of everyone to have someone else pay the bill.


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## Davis (Nov 11, 2014)

Happy guy, Nortel's is right - the benefits you get for July 2016-June 2017 are based on the income reported on your 2015. CRA would not ask for the money back unless they found out that you had more income in 2015, or didn't actually have a child.

And ignore lonewolf. Welcome to Canada, congratulations on your new job, and best of luck to you and your family.


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## happy_guy (Mar 26, 2016)

Wonderful. Thanks, nortel'd and Davis.


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