Getting married can affect your Child Tax Benefit
For people receiving the Child Tax Benefit, changing your marital status from single to married or common-law will now mean the benefits will be recalculated before the end of the year.
As of July 2011, the rules for the Child Tax Benefit (CTB) changed. Under the old rules, if you were receiving the CTB and got married or became common-law, you continued to receive the same amount until the end of the benefit period. The CTB is paid from July to June. Now the benefit will be recalculated the month after a change in marital status based on your combined household income which means it could affect the amount you receive.
For tax purposes, you are considered common-law if you have lived together for 12 continuous months or if you move in with the parent of your child, you are considered common-law immediately. If you get married or become common-law during the tax year, you should notify the Canada Revenue Agency (CRA) by completing a RC-65 Form.
CTB recipients are required to notify the CRA of a change in marital status by the end of the month after their status actually changed. So if you got married in July, you would need to let the CRA know in August. Your CTB payments would also be recalculated based on household income starting in August.
If you become separated, the CRA has always recalculated the CTB payment based on the single parent’s net income starting the month after the separation. The separation needs to last for 90 days before the CRA considered you separated. This will not change under the new rules.
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