Canada Dental Benefit: Now Open and Accepting Applications

Did you know that in Canada, a third of people do not have dental insurance to get the dental care they need?  Starting on December 1, eligible Canadians were allowed to apply for the Canada Dental Benefit. This is the first-ever federal dental-care program, but it comes with fine print and potential auditing if incorrectly applied for.  Here’s what you need to know to tap into the program, which allows for dental expenditures to be claimed back to October 1, 2022. 

The Canada Dental Benefit will give eligible families up-front, direct payments of up to $650 a year per eligible child under 12 for two years (up to $1,300) to support the costs of dental care services, according to the Government’s Press Release.  This will be processed by CRA according to claim periods:

• Period 1 is for dental care received between October 1 to June 30, 2023
• Period 2 is for  dental care received between July 1, 2023 and June 30, 2024

It is possible to qualify for an additional payment starting July 1, 2023 if costs are over $650 in one of the benefit periods.  It is possible to receive the additional payment if you are not apply for both benefit periods.  In this case the same benefit is the same as the period applied for.  

Applications will be submitted through the CRA’s website, where the applicant’s identity will be verified, along with confirmation that their 2021 tax return has been filed.

In order to access the benefit, applicants must meet all of the following criteria:

• Have a child or children under 12 as of December 1, 2022 and are currently receiving the Canada Child Benefit (CCB) for that child;
• Gave an adjusted family net income of less than $90,000;
• Their child does not have access to private dental insurance;
• Filed their 2021 tax return; and
• Have had or will have out of pocket expenses for their child’s dental care services incurred between October 1, 2022 and June 30, 2023, for which the costs are not fully covered or reimbursed by another dental program provided by any level of government.

For more on how to apply visit here. 

How Much is the Canada Dental Benefit Payment?

More information: Depending on the family’s net income, a tax-free payment of $260, $390, or $650 is available for each eligible child. This interim dental benefit is only available for 2 periods. You can get a maximum of 2 payments for each eligible child.

Potential Audit Traps

Note that the child is considered to have dental coverage, and therefore will not qualify for the Canada Dental Benefit in the following cases; pay particular attention to point #3:

• Some or all of the child's dental costs are covered by a private dental insurance plan of any kind
• Either parents’ or caregiver’s employer provides a dental insurance plan for the child
• The parents or someone else declined an employer provided dental insurance plan that would have covered the dental care for the child

Also it’s important to book an appointment for dental care within the Period 1 or 2 before applying and be parents/caregivers must be prepared to provide details about the dental provider, appointment dates and costs.  The Canada Dental Benefit will need to be repaid if the dental care is not received within the period.

What services can be booked?  Payments to the following professionals for services will qualify:

• a dentist
• a denturist
• a dental hygienist

Bottom Line: Advisors need to share this information with clients that qualify, and Canadians should share this article with family or friends that potentially qualify, especially newcomers to Canada. Also, this is another example of why it’s ESSENTIAL to file tax returns on time. To access this benefit – the first thing the government checks is if the person filed their 2021 tax return.

If this return was missed, do file it immediately to access valuable tax free benefits like the Canada Dental Benefit and refundable tax credits like the Canada Child Benefit and GST/HST Credit.

Additional Educational Resources:  Enrol in the Advanced Personal Tax Update for Professionals on January 18 (Virtual) or February 7 (live in person at the Pearson Convention Centre).  Or subscribe to Evergreen Explanatory Notes – Knowledge Bureau’s Online Tax Library which connects you to all the CRA forms, folios, interpretations, Income Tax Act and more, and explains issues and answers to save you time and money.  

Evelyn Jacks is Founder and President of Knowledge Bureau, holds the RWM™, MFA ™, MFA-P™ and DFA-Tax Services Specialist designations and is the best-selling author of 55 books on tax filing, planning and family wealth management.  Follow her on twitter @evelynjacks.

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