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Alberta

The Child Benefit You Got was Not an Error

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The Child Benefit You Got was Not an Error

So a lot of people are wondering why money showed up for the Canada Child Benefit (CCB) yesterday (May 20) when they normally don’t qualify.

The CCB “one-time payment” for COVID-19 relief is actually formula driven but it is created by adding $3,600 for each additional child (not $300)… you’ll see in a minute why this is.

Step 1 – Add up the number of children that were under 6 years old in 2018 and multiply by $6,639.00

Step 2 – Add up the number of children that were between 6 and 17 years of age in 2018 and multiply by $5,602.00

This is your normal ANNUAL Canada Child Benefit entitlement before reductions.

However, for your May 2020 payment only, the formula adds $3,600 per child to bring the numbers to $10,239 and $9,202 per child based on age respectively.

If you have less than $31,120 of adjusted household income, you will get the full $300 extra, congrats, no more math for you.

For the rest of you it gets interesting or complicated, depending how you view math.

Any amount of adjusted household income between $31,120 and $67,426 causes your ANNUAL entitled CCB to be reduced by the following:

  • 7% of the amount of household income if you have 1 child
  • 13.5% of the amount of household income if you have 2 children
  • 19% of the amount of household income if you have 3 children
  • 23% of the amount of household income if you have 4 children or more

This is called the “first reduction”.  The maximum amount of household income subject to the first reduction formula is $36,306 more than the base $31,120 (meaning an income of $65,976)

Those of you over this number, you are not done yet.

Any amount of adjusted household income over $67,426 causes your ANNUAL entitled CCB to be reduced by the following:

  • 3.2% of the amount of household income if you have 1 child
  • 5.7% of the amount of household income if you have 2 children
  • 8% of the amount of household income if you have 3 children
  • 9.5% of the amount of household income if you have 4 children or more

This is called the “second reduction”.  There is no maximum amount of household income subject to the second reduction formula.  You keep calculating until you hit zero.

For example.   If you have one school-aged child in 2018, and your adjusted household income is $100,000 the formula would be this:

NORMAL MONTHLY BENEFIT:

  • First reduction: 67,426-31,120 = $36,306 x 7% = $2,541.42
  • Second reduction: 100,000-67,426 = $32,574 x 3.2% = $1,042.37
  • 1 child: $5,602
  • $5,602.00 minus $2,541.42 = $3,060.58 minus $1,042.37 = $2,018.21
  • $2,978.21 divided by 12 = $168.18/month CCB as a Normal Benefit

COVID19 MAY 2020 BENEFIT:

  • The first two reduction steps are the same but that 1 child is $3,600 more
  • 1 child: $9,202
  • $9,202.00 minus $2,541.42 = $6,660.58 minus $1,042.37 = $5,618.21
  • $5,618.21 divided by 12 = $468.18/month CCB as a one-time Benefit  (an extra $300 like promised)

So yes… an extra $300 per child for those already getting the benefit already… but for those that were not getting it before, but filed in 2018… and had an eligible child… the formula is recalculated with the $3,600 ($300 per month) change, and so many more households in Canada will be seeing some sort of amount.

For example, the lowest amount possible to collect would be with one school-aged child ($9,202 formula).

  • Households that make up to $163,069 will receive the full $300 for this child.
  • Households between $163,069 and $275,569 will receive less than $300 on a sliding scale from the Second reduction.
  • Households over $275,569 in this scenario would receive zero.

So almost every household with eligible children in Canada will see something coming their way for the May benefit to help with the extra costs with no schools or dayhomes open.

Sincerely,
Your Friendly Neighbourhood Tax Nerds

CGL Strategic Business & Tax Advisors

 

 

 

 

 

CV of Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr can be found here.

 

CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: “People don’t pay me for my looks. My modeling career ended at birth.” More info: https://CGLtax.ca/Litzenberger-Cory.html

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Alberta

Danielle Smith warns arsonists who start wildfires in Alberta that they will be held accountable

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From LifeSiteNews

By Anthony Murdoch

The Alberta government has created an ad campaign highlighting the fact that most fires are caused by humans and not ‘climate change,’ as many left-leaning politicians claim.

In preparation for the so-called wildfire “season,” Alberta Premier Danielle Smith sternly warned anyone caught starting blazes in her province, including arsonists, that they will face charges and be held fully “liable” for all costs associated with the fires.

“As we approach the wildfire season, it is important to understand that 67% of wildfires in Alberta are started by people,” Smith posted Monday on X.

“If you start a wildfire, you can be charged, fined, and held liable for all costs associated with fighting the wildfire.”

Smith made the comments after last year revealing that most of the wildfires in her province (500 of the 650) were caused by humans and not “climate change,” as has been pushed by the legacy media and opposition politicians.

“All I know is in my province we have 650 fires and 500 of them were human caused,” she said, “so we have to make sure that when people know that when it’s dry out there and we get into forest fire season that they’re being a lot more careful because anytime you end up with an ignition that happens it can have devastating consequences.”

To go along with Smith’s Monday message, the Alberta government has also created an ad campaign highlighting the fact that most fires are caused by humans and not “climate change,” as many left-leaning politicians claim.

As reported by LifeSiteNews last year, Smith ordered arson investigators to look into why some of the wildfires that raged across the vast expanse of the province had “no known cause” shortly after they spread.

During the campaign of Alberta’s 2023 election, Smith, whose United Conservative Party won a majority government, had to pause to deal with many wildfires that suddenly, out of nowhere, ravaged the province. The fires came on suddenly and uncharacteristically considering the heavy snowfall in the province in early March and rain in April.

LifeSiteNews reported that despite the arrest of multiple arsonists, Canada’s mainstream media and the federal government have been pushing a narrative attributing the recent wildfires to “climate change.”

However, statistics from Canada’s National Fire Database show that wildfires have gone down in recent years and peaked in 1989.

As for Canadian Prime Minister Justin Trudeau, he has repeatedly used “climate change” and forest fires as a catalyst for propping up his government’s much-maligned carbon tax, which Smith opposes. He has blamed the fires on “climate change.”

A June 2017 peer-reviewed study by two scientists and a veteran statistician confirmed that most of the recent global warming data have been “fabricated by climate scientists to make it look more frightening.”

Trudeau has been calling for increased bans on Canada’s natural resources, of which Alberta has in abundance.

Smith has vowed to fight Trudeau on his attacks against Alberta’s oil and gas industry.

The reduction and eventual elimination of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF), the globalist group behind the socialist “Great Reset” agenda in which Trudeau and some of his cabinet are involved.

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Alberta

Free Alberta Strategy backing Smith’s Provincial Priorities Act

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News release from Free Alberta Strategy

Premier Danielle Smith had a message for Ottawa last week.

Keep out.

On Wednesday, the Premier rolled out her latest weapon in the fight against federal intrusions into provincial jurisdiction.

If passed, Bill 18 – the Provincial Priorities Act – aims to align federal funding with provincial priorities, ensuring that said funding reflects Alberta’s interests.

The legislation stipulates that any agreements between the federal government and any provincial entities – including municipalities – must receive provincial approval to be considered valid.

Smith has already given it a nickname: “the stay-out-of-my-backyard bill.”

It’s an apt description of the legislation, especially considering that’s what the federal government has been doing for years – encroaching into Alberta’s jurisdiction.

The legislation shouldn’t come as a surprise to anyone.

We all know that most deals the Alberta government enters into with the federal government don’t work out for Albertans.

We end up paying more in federal taxes than gets spent in federal spending on the programs.

The programs come laden with restrictive conditions that undermine our autonomy, and are often detrimental to our ability to provide the services.

This is especially true with regard to the recent agreement between Ottawa and the provinces that allows the federal government to nationalize childcare.

The childcare agreement has come under heavy criticism due to funding shortfalls in the deal.

It also applies to housing, where despite Alberta accounting for 12% of the national population and experiencing the most rapid population growth, it received a mere 2.5% of the total $1.5 billion in federal housing funding last summer.

Jason Nixon, Minister of Seniors, Community and Social Services, is in charge of housing in Alberta – which is provincial jurisdiction.

On the latest rollout of conditional federal housing handouts, Nixon isn’t buying.

“We will not be bribed, with our own money, to increase the time it takes to get homes built with green energy that makes homes more expensive.”

The theory also applies to the federal government’s latest gambit – doing an end-around provincial negotiations and going directly to municipalities, who seem more interested in taking the money than the conditions attached.

Municipalities are provincial jurisdiction.

Bill 18 mandates that entities within Alberta’s jurisdiction, such as municipalities, universities, school boards, housing agencies, and health authorities, must seek the province’s approval before engaging in, modifying, extending, or renewing agreements with Ottawa.

Agreements between the federal government and provincial entities lacking Alberta’s endorsement will be deemed illegal under this legislation.

That’s Premier Smith’s message.

She’s had enough of it.

“It is not unreasonable for Alberta to demand fairness from Ottawa. They have shown time and again that they will put ideology before practicality, which hurts Alberta families and our economy. We are not going to apologize for continuing to stand up for Albertans so we get the best deal possible.

“Since Ottawa refuses to acknowledge the negative impacts of its overreach, even after losing battles at the Federal and Supreme Courts, we are putting in additional measures to protect our provincial jurisdiction to ensure our province receives our fair share of federal tax dollars and that those dollars are spent on the priorities of Albertans.”

Municipal Affairs Minister Ric McIver had additional thoughts:

“For years, the federal government has been imposing its agenda on Alberta taxpayers through direct funding agreements with cities and other provincial organizations. Not only does Alberta not receive its per capita share of federal taxpayer dollars, the money we do receive is often directed towards initiatives that don’t align with Albertan’s priorities.

“Albertans from all corners of the province expect our federal share of taxes for roads, infrastructure, housing and other priorities – not federal government political pet projects and programs in select communities.”

The Provincial Priorities Act is based on existing provincial legislation in Quebec – called “An Act Respecting the Ministère du Conseil executif” – which prohibits any municipal body from entering into or negotiating an agreement with the federal government or its agencies without express authorization from the Quebec government.

That’s right – the Quebec government has the same rule!

So, this boils down to the same argument we’ve been making for years – if Ottawa wants to step into our backyard, it must first seek Alberta’s approval.

Enough is enough – we won’t stand idly by as our interests are trampled upon.

It’s time for Ottawa to recognize Alberta’s autonomy and respect our right to determine our own future.

At the Free Alberta Strategy, we know that constant vigilance is necessary – for every fence we put up, the federal government tries to find a way around it.

We’ll continue to bring you information about what’s happening in Alberta’s backyard and fighting to keep Ottawa out.

The Free Alberta Strategy Team

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