Beginning in July, individuals and families may be eligible for increased federal child and family benefits and credits, the Canada Revenue Agency says.

As part of the fiscal stimulus package introduced in the 2009 budget, the federal government has raised the income levels at which the National Child Benefit supplement for low-income families and the base benefit under the Canada Child Tax Benefit are phased out. Specifically, families with children will be able to earn an additional $1,894 before their supplement is fully phased out, or before their base benefit under the CCTB begins to be phased out.

As a result, eligible low-income families with two children can receive an additional benefit of up to $436 per year starting in July 2009, according to Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture and Agri-Food).

“This will allow many families to receive increased federal child benefits because the income levels where the benefits start to be phased out increased,” said Blackburn. “More families will be eligible to receive benefit and credit payments, due to the government’s action.”

The Canada Child Tax Benefit is a tax-free monthly payment made to eligible families to help them with the cost of raising children under the age of 18. Last year, more than 3.1 million families benefited from these payments, totaling $9.5 billion, according to the CRA.

The National Child Benefit Supplement is an additional monthly payment that provides extra support to low-income families with children.

The government expects this year’s change to provide families with children with additional benefits estimated at $230 million in 2009-2010 and $310 million in 2010-2011. It will impact 2.4 million low- and middle-income Canadian families with children.

Since the Canada Revenue Agency recalculates the entitlement every July, Canadians wishing to start receiving child and family benefits are required to fill out an application. The agency can make retroactive payments for up to 11 months from the time the application is received.

IE