What is the Child Disability Benefit?

The Child Disability Benefit (CDB) is a tax-free monthly payment received by families who are supporting a child with physical or mental disabilities. (https://www.canada.ca/en/revenue-agency/services/child-family-benefits/child-disability-benefit.html)

Eligibility:

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First and foremost your child must be under the age of 18 and have a (or more) longterm and demanding physical or mental disability causing impairment in functioning.

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The disability tax credit, step by step for applying:

  1. To receive the CDB the guardian(s) or parent(s) must first qualify for the Canadian Child Benefit (CCB). (Canadian Childcare Benefit (CCB)
  2. The parent/guardian(s) must then apply for the disability tax credit on behalf of the child, which helps reduce income taxes.
  3. A child will be eligible for the DTC with the DTC certificate - Form T2201. The parent must fill it out online and then have the physical/mental impairment certified by a doctor. The CRA must them approve this form. ( https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2201.html)
  4. If both of these are applicable to the child then the CBD will be provided to the parents based on their family income and the number of children meeting the eligibility criterion.

Finance:

An estimate of $276.83 per month is possible for each child according to the Disability Tax Credit. Payments are calculated in July of each year based on the adjusted family net income.

The benefit will be reduced when the adjusted family net income is over $79,087 but there are additional factors such as: