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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, Canadian Tax Advisory CGL Strategic Business & Tax Advisors 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://www.CGLtax.ca/Litzenberger-Cory.html

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Alberta

Batherson’s shootout winner gives Senators 4-3 win over Flames

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CALGARY — Drake Batherson scored the game-winning goal in a four-round shootout to give the Ottawa Senators a 4-3 win over the Calgary Flames at the Scotiabank Saddledome in Calgary.

Connor Brown, Ryan Dzingel and Colin White each scored a goal for the Senators (9-17-1) in regulation. Tim Stutzle also scored a shootout goal.

Mark Giordano, Johnny Gaudreau, and Noah Hanifin scored for Calgary (11-12-3). Matthew Tkachuk added a shootout goal of his own in the loss.

Matt Murray made 30 saves for Ottawa. Jacob Markstrom made 18 saves for Calgary.

Brown scored the first goal of the game with 6:12 to play in the first. He fired the puck from behind the right face off circle. The puck redirected off a Flames defenceman before sliding through Markstrom’s legs.

Dzingel scored for the second consecutive game to give his team a 2-0 advantage before the intermission. He finished a two-on-one play, taking a pass from Chris Tierney before tapping the puck past Markstrom.

Ottawa Senators forward Austin Watson and Calgary Flames forward Zac Rinaldo fought each other within the opening three minutes of the second period, in the hopes of sparking their respective teams.

It worked, briefly, for the Flames. Giordano scored his third of year 88 seconds later, firing a shot that deflected off Senators’ forward Josh Norris before beating Murray.

But the Senators would restore their two-goal advantage thanks to Colin White’s seventh goal of the season less than four minutes later.

Gaudreau scored in the third period to bring the Flames, once again, within a goal. It was his 11th of the season. The Flames would finally even the scoreline thanks to a goal from Hanifin with over eight minutes to go in regulation. It was the second goal in two games for the Flames defenceman.

Calgary thought they had the game won later in the third as Brown tried to give the Senators the lead with his second of the night. With Markstrom out of position, the puck struck the right leg of Flames defenceman Juuso Valimaki and away from the goal.

The Flames and Senators hoped overtime would decide things, but to no avail. Batherson’s shootout winner would give the Senators two points and leave the Flames with just one.

NOTES: The Flames had eight power play opportunities Sunday night, but only scored once with the man advantage….

This report by The Canadian Press was first published March 7, 2021.

The Canadian Press

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Alberta

Former world champion Kevin Koe earns third straight win at Tim Hortons Brier event

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CALGARY —
Kevin Koe remains unbeaten at the Tim Hortons Brier.

Koe’s Wild Card 2 rink defeated Eddie MacKenzie of Prince Edward Island 12-5 on Sunday to improve to 3-0 at the Canadian men’s curling championship.

MacKenzie’s squad dropped to 0-2.

Koe, a four-tine Canadian champion and twice a world gold medallist from Calgary,  took control of the match early, scoring three in the second for a 4-0 lead.

Koe’s rink added four more in the fourth end to go up 8-1 before adding three in the sixth for an 11-3 advantage.

Koe rounded out the scoring with one in the eighth, after which the two teams shook hands.

Koe’s takes on Team Canada’s Brad Gushue (2-0) in the evening draw.

In other early action, Saskatchewan’s Matt Dunstone (2-1) downed Newfoundland & Labrador’s Greg Smith (0-3) 6-3; Quebec’s Michael Fournier (2-1) defeated Nunavut’s Peter Mackey (0-2) 15-1; and Ontario’s John Epping (2-1) got past Nova Scotia’s Scott McDonald (1-2) 12-7.

This report by The Canadian Press was first published March 7, 2021.

The Canadian Press

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