Ontario families can look forward to much-needed financial support in January 2025 with the Ontario Child Benefit (OCB). This tax-free monthly payment of up to $140 per child aims to ease the financial pressures of raising children under 18. Whether you’re already familiar with the OCB or are learning about it for the first time, this guide will explain everything you need to know, from eligibility to how to apply, as well as how timely tax filing can ensure uninterrupted payments.
What Is the Ontario Child Benefit?
The Ontario Child Benefit (OCB) is a financial assistance program designed to support low- to moderate-income families with the costs associated with raising children. The benefit is intended to help cover everyday essentials, from education and food to extracurricular activities. By providing this financial support, the OCB ensures families have more resources to focus on their children’s well-being.
The OCB works in conjunction with the Canada Child Benefit (CCB). Families do not need to submit separate applications for each benefit. By applying for the CCB, families are automatically considered for the OCB, simplifying the process.
Eligibility Criteria for the Ontario Child Benefit
To qualify for the OCB, certain conditions must be met:
- Residency: You must live in Ontario to be eligible.
- Primary Caregiver: You need to be the primary caregiver of a child under 18. This means you are responsible for the child’s day-to-day care and decisions regarding their welfare.
- Canada Child Benefit (CCB) Eligibility: You must qualify for the CCB, which includes being a Canadian tax resident and having a valid Social Insurance Number (SIN).
- Income Thresholds: The amount you receive depends on your family’s net income:
- Full benefit for families with an income under $25,646.
- Reduced amounts for families with higher incomes, phasing out at higher income levels.
- Tax Filing Requirement: Both you and your spouse (if applicable) must file your tax returns annually. Even if you have no income, filing is crucial to receive the benefit.
How to Apply for the Ontario Child Benefit
- For New Parents: If you’ve recently had a child, you can apply through Ontario’s Newborn Registration Service, which combines birth registration with applications for the CCB and OCB. This ensures your child is registered for benefits from the start.
- For Existing Parents: Log into your CRA My Account and complete the CCB application form (RC66). Based on the information provided, the CRA will assess your eligibility for the OCB automatically. No separate application is required for the OCB.
Important Tip: Always file your taxes on time to ensure uninterrupted payments. Missing the deadline can cause delays in receiving your benefit.
When Will You Receive the Ontario Child Benefit?
OCB payments are issued monthly, typically on the 20th of each month. For January 2025, payments will be distributed on:
January 20, 2025
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You can opt for direct deposit, which sends the payments straight to your bank account, or receive a mailed cheque. To set up direct deposit, visit the CRA Direct Deposit page.
How Much Will You Receive?
The maximum OCB benefit for 2024-2025 is $140 per child, per month. The amount you receive is based on your adjusted family net income:
- Families earning $25,646 or less will receive the full benefit.
- Families with higher incomes will receive a reduced amount, which decreases as income rises.
For example, if your family earns $30,000, you will receive less than the full benefit. To estimate your benefit, use the CRA Child and Family Benefits Calculator.
The Importance of Filing Your Taxes
Filing your tax return on time is essential to receiving the OCB. The CRA uses your tax information to determine:
- Your eligibility
- The exact amount of your benefit
If you fail to file your taxes on time, your benefits could be delayed or interrupted. Set a reminder to file before the deadline, and update your information if there are any changes to your family or income.
FAQs about the Ontario $140 Monthly Child Benefit Payment
- Can I still receive the OCB if my income exceeds $50,000?
It’s unlikely. The OCB phases out as family income increases, so higher earners may not qualify for the benefit. - Is the OCB taxable?
No, the OCB is a tax-free payment, meaning you can use the full amount for your family’s needs. - What if my marital status changes?
Notify the CRA as soon as possible. A change in marital status can impact your eligibility and payment amount. - What if I missed filing my taxes last year?
You can still receive the benefit by filing your overdue tax return. Once your tax information is updated, payments will resume.
In conclusion, the Ontario Child Benefit is a valuable financial support program for families raising children in Ontario. By meeting the eligibility requirements, filing your taxes on time, and staying informed about the payment schedule, you can ensure your family receives the full benefits available to you.