Hello I am wondering if the disabled contributor’s child’s benefit through my cppd is ment to be given to the child and put into savings or something or if it’s to be used by the parent to help with the costs of raising the child. And if it’s ok to be used to help in costs with raising children what happens when they are old enough to work as they receive a t4a won’t it at that time need to go to them as they will have to claim it on their taxes. I would assume that when they move out and attend college or university it will have to go to them. Really confused. Thank you
No, it’s meant to put food in their mouth and a roof over their head. Once they’re 18 they still get it if they’re in school, and it will be paid directly to the kid once they submit the paperwork confirming attendance at a school.
Ok thank you. But what when they start working. My oldest is turning 14. She plans on working p/t the t4a comes in her name. Will it need to be included when she files her taxes as it’s only "tax free " if you earn under the alloted amount. thank you.
Yes but she won’t owe taxes on it unless she earns more than the basic exemption.
Thank you. It just seems confusing that my kids while not getting the money untill they turn 18 still have to claim the money as income when filing taxes and if they earn more than the alloted exemption amount have to pay taxes on it when 3000 of their “income” child benefit didn’t go into their hands.
You may be over thinking this. The money is paid to you on their behalf because they’re minors. They are definitely ‘getting the money’, they’re just not old enough to take care of their needs themselves.
Well your more than likely right, and my wife would certainly agree with you in that I am over thinking it,lol Thank you for your time and help I will try to stop worrying about something that does not exist.
Yes, if your child is working P/T, then when she declares her taxes, she also needs to declare the CPP-D child benefit. Likely, since P/T jobs that minors work don’t pay more than the basic exemption, even with the CPP-D benefit added in, it still means that the child won’t have to pay tax.
I do think that if someone has a situation that is an exception to the situation, it could be a sticking point. For example, if your child had a well-paying P/T job, then the CPP-D benefit could put them over the personal exemption mark and they would have to pay tax on the amount that is over the personal exemption.
As a separate point, since the CPP-D child benefit puts the T4A in their name, does anyone know if it should earn the child RRSP room? The T4A attributed to the adult from CPP-D seems to earn the adult RRSP room.