The Child Disability Benefit is a tax-free benefit of up to $227.50 per month ($2,730 per year) for families that care for a child under 18 who suffers from a severe and prolonged impairment in their physical and/or mental functions and who qualifies for the Disability Tax Credit. In other words, the Child Disability Benefit is a tax-free addition to your regular Canada Child Benefit amount. The current amount of $227.50/month is indexed annually for inflation. This amount starts being reduced when the adjusted family net income is more than $65,000. Visit the CRA website for more information on how the child disability benefit is calculated.
There is no need to actually apply for the CDB as the benefit will be automatically factored in to your monthly benefit payment once your child’s DTC is approved. In addition, you will receive the benefit retroactively for the past two tax years once your child’s DTC is approved. For anything beyond the past two tax years, you simply need to submit a written request to your Tax Centre for the benefits that you should have been receiving during those years.
This is just another example of why the DTC is so crucial for your child as it is the gateway to many other benefits and programs.
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Thanks for the information! Resources like this are very helpful for parents that are struggling to find out about what is available for them and their children. I will definitely be reading more of these articles in the future.