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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

As Alberta debates coal mining, industry already affecting once-protected Rockies

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Coal mining is already having an impact in Alberta’s Rocky Mountains even as debate intensifies over the industry’s presence in one of the province’s most beloved landscapes.

“They’ve been very active up there,” said Kevin Van Tighem, who lives near one of the areas now heavily leased for coal exploration. 

The United Conservative government’s decision to revoke a policy that had protected the eastern slopes of the Rockies from open-pit coal mining since 1976 has convulsed the province. 

Petitions opposing the move have gathered more than 100,000 signatures. Popular Alberta entertainment figures have come out against it and area ranchers and First Nations are trying to force a judicial review of the decision. 

Documents from the Alberta Energy Regulator show that permission has already been granted for hundreds of drill sites and kilometres of roads threading through critical wildlife habitat and land previously untouched by mining. 

“The day after the coal policy was rescinded we started seeing applications for exploration,” said Katie Morrison of the Canadian Parks and Wilderness Society.

“Before we’ve done any real assessments of the impacts, we’re seeing these companies have some potential pretty big impacts on that land.”

Documents filed with the regulator give some sense of what’s already been permitted.

Cabin Ridge Coal, operating 50 kilometres north of Coleman, Alta., is putting in 197 drill sites on land once protected by the coal policy. 

It plans 15 new access roads and 19 “reactivated” roads — abandoned for decades and now being refurbished. The exploration plans require nine new stream crossings.

Elan Coal, north of Blairmore, Alta., has been permitted for 456 drill sites that include 66 kilometres of new roads and 29 kilometres of reactivated roads. 

Montem Resources, active south of Coleman, has the OK for 71 drill sites with an unspecified length of “new and existing access.”

Almost all of the drill sites are on grizzly bear range. Mountain goat and sheep habitat will be affected. 

Company plans detail how environmental impacts are to be reduced by careful construction and timing work for when it will cause the least disruption. They suggest the amount of land directly disturbed will be small — less than 100 hectares for Cabin Ridge.

That’s not the whole story, said Van Tighem, a former chief superintendent of Banff National Park.

Wildlife steer clear of active roads and drill sites by up to 500 metres, he said. Roads cut into hillsides — no matter how well built — are “erosion traps” and roads that run uphill are “sluiceways” for run-off that would normally feed streams, he said. 

Mitigation measures aren’t all they’re cracked up to be, he added.

“They’re not ever as good as (companies) promise and not as consistently applied as the government would lead us to believe.”

Morrison points out that at least twice since the coal policy was revoked, companies have asked for exemptions to rules that prevented them from operating during sensitive times for wildlife. 

“Both exemptions were applied for, granted and work started within a day or two,” she said. “That doesn’t scream rigour to me as far as decreasing impact.”

Peter Brodsky, spokesman for Energy Minister Sonya Savage, said the government takes public concern seriously. This week, it paused all lease sales on formerly protected land and cancelled a small number of them, refunding $80,000.

“The department will be working with Alberta Environment to determine next steps to best address the concerns that have been raised,” he said in an email.

“We will not choose between protecting the land for future generations and providing economic opportunities. We need to — and will — do both, in a measured and environmentally responsible way.”

Area rancher Gordon Cartwright looks up into the hills on his neighbour’s land and recalls what a geologist told him last summer about what his neck of the foothills looks like.

“He said, with the intensity of the operations and the drilling, it looked more like mining preparation than exploration,” Cartwright said.

“That activity’s pretty damaging. A lot of these soils are highly susceptible to erosion and are hard to revegetate.

“You would have thought consultation would have happened before you start opening up the country and creating that kind of disturbance.” 

This report by The Canadian Press was first published Jan. 21, 2021.

— Follow @row1960 on Twitter

Bob Weber, The Canadian Press

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Alberta

WestJet to reintroduce Boeing 737 Max today in flight from Calgary to Vancouver

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CALGARY — WestJet Airlines will operate the first commercial Boeing 737 Max flight in Canada today since the aircraft was grounded in 2019 following two deadly crashes.

Transport Canada lifted its grounding order for the Max on Wednesday after approving design changes to the plane and requiring pilots to undergo additional training.

WestJet executives will hold a press conference after the morning flight between Calgary and Vancouver.

The event is part of a campaign to reintroduce the Max to service while assuring the public that the plane’s safety issues have been addressed.

Air Canada is expected to follow suit on Feb. 1.

Air Canada has already said it will offer passengers booked on a Max the option of changing their flight at no extra charge.

This report by The Canadian Press was first published Jan. 21, 2021.

Companies in this story: (TSX:AC)

The Canadian Press

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