CCB Young Child Supplement 2021

Diane Elliott

Canada Child Benefit (CCB) amounts increased again in 2021.  Technically, the base amount did not change until July, but a supplement was added for younger children for the full year.  This supplement has a big acronym attached to it:  the Canada Child Benefit Young Child Supplement (CCBYCS). 

In May of 2021, the government announced that families of children under the age of six were eligible for up to four tax-free CCBYCS payments in 2021.  The first payment was at the end of May.  This covered the January and April’s payments.  The CCBYCS benefit was paid automatically in July and October. 

So, who can (or did) get the CCBYCS?  Short answer: any family or agency who is eligible to receive the CCB or children’s special allowances (CSA) are eligible for CCBYCS or equivalent payments.

What are the additional requirements? 

1. A child under your care was under six prior to the month of the payment. That means if your dependent child was 3 years old in 2021, you are eligible for all four payments.Let’s say your oldest child turned six in April.You would receive only the January and April payments for that child.For a child born in April, there would be no CCB until May.Therefore, there is no CCBYCS for April.This would start in July.The only application necessary is the original CCB application when a child is born or newly under your care.
2. The CCBYCS is income based. If family income is less than $120,000 in 2019 and 2020, they are eligible for the full $1,200 per child.If a family’s net income is higher than $120,000, CCBYCS payments decrease by 50%.Therefore, CCBYCS would be $600 in the year.The January and April amounts were based on 2019 net family income.The July and October payments were based on 2020 net income.
3. Some may ask, my ex-spouse and I share parenting, what happens then?If the parenting arrangement is at least a 40/60 split, each supporting parent could receive one half of the CCBYCS.Both parent’s income is added together to determine eligibility.
4. Last, but certainly not least, tax filing needs to be up to date.If you (or your clients) have not yet filed 2019 and 2020 tax returns, the time to do this is now!Once these years’ returns have been assessed, CCB and the CCBYCS payments for 2021 will be paid.Luckily, you can receive CCBYCS retroactively.

Now we know that the CCBYCS is income based, paid separately from CCB, no application is required, is for children under 6 in your care and payments are tax-free.  The last question to be answered is how were these paid?  The CCBYCS was issued separately from the regular CCB payments and paid on, or near, the end of the applicable months. If direct deposit is set up for CCB payments, CCBYCS would be deposited into the same account.