Getting a tax credit for child birth and other child-related tax breaks

Becoming a parent is a magical time, but also an expensive one. Good thing there are some tax breaks you can benefit from when you have a child.

Having children is one of the most exciting times in people’s lives. But on top of all the excitement and the joy of having a baby, there is also the financial side of things. All parents will agree that kids are expensive.

• Because the government wants us to have children, they make things a little easier by offering tax credits for child birth and other tax breaks.

Here are some things to keep in mind if you are a new parent or about to be a parent.

Don’t forget to register your baby’s birth and apply for his or her Social Insurance Number (SIN) as soon as possible after he or she is born.

• When your child has a SIN, it means you can start saving for your child’s future education.
• You can do this by participating in programs such as the Registered Education Savings Plan, the Canada Education Savings Grant and the Canada Learning Bond. Tax benefits are associated with these programs.

You can usually register for this at the same time when you are registering your child’s birth.

• Getting the paperwork done early on the Canada Child Tax Benefit (CCTB) means you will benefit from it as soon as possible.
• What is it? A tax-free monthly payment to help you pay for the cost of bringing up children until they are 17 years of age.

Children with special needs require special care. Sometimes that means parents spending more time at home (and, therefore, less time at work), and sometimes it means the child having to go to a specialized school that is better equipped to give the child the care and education he or she needs.

• The Child Disability Benefit is a tax-free benefit for parents caring for children up to the age of 17 with sustained mental or physical impairments.

There are several tax breaks and credits available to you for child birth and raising children under 18 years of age.

• It can be complicated to figure out what you are entitled to receive.
• One way to help ensure you’re getting the money owed to you is to hire an accountant or see someone knowledgeable for your tax returns who can advise you on what money is owed to you.