DandNHill

Quick question for those "in the know"

Hubby is currently unemployed so I thought I would see whether we were eligible for child benefit on our current income...

If I put in our annual income based on what we are getting now we would get quite a bit but they ask for last years tax return which would make us ineligible...
Anyone have any idea whether they take in to account a change of circumstances or even if your income has dropped dramatically will they still base it on last years tax return?

thanks

gemmab1979

Hi there

I don't know the answer but could I trouble you to ask for the web address of the calculator? I know in uk if there has been a drop in earnings since previous year then they take an estimate for current year into account, hope it's the same for you here

DandNHill

I hope so...

Here's the link: http://www.cra-arc.gc.ca/ebci/icbc/s...e?taxYear=2012

Siouxie

According to Service Canada:
No mention of reduction in income though.

It may be worth giving them a call.


The link to the calculator is here:
http://www.cra-arc.gc.ca/bnfts/clclt...lcltr-eng.html

DandNHill

Thanks. I only thought about it this evening as we have never claimed but right now every little helps!

Siouxie

Absolutely - you should claim it even if you were earning in excess. There is also the NS child benefit - http://novascotia.ca/coms/families/ChildBenefit.html - and the NS affordable living tax credit - http://www.cra-arc.gc.ca/E/pub/tg/50...e.html#ns_altc and GST/HST tax credit - http://www.cra-arc.gc.ca/E/pub/tg/rc....html#P82_4262

Aviator

It is based on your previous years income. It cannot be based on current years income as that can be variable during the year. If it was and they paid you too much, you would have to give some back at the end of the year, which would cause a problem for many.

DandNHill

Really? So if one year you earn $150,000 and the next year $20,000 you wouldn't be eligible? Wow, that's harsh... It's not quite so extreme as that but it would be nice that they could help whilst we are down rather than waiting until we're back up again
So in theory, if we had been earning $150,00 until Dec 31st and then only $20,000 all through 2014 we would be eligible based on $20,000 in 2015 even if our income had risen dramatically? Hmm, doesn't seem very logical really... I understand the need to administer it but...

Shirtback

As far as I know, Federal child tax benefits can't be recalculated because of an income change until the next tax return BUT, I would definitely call CRA to confirm this. I know they can & do adjust mid-year for other reasons.

However, I do know that my province (Qc) does & will adjust benefits, if there is a significant (IIRC, they were willing to recalculate on proof of 10% drop in income) change in income mid year (between tax returns). Maybe NS might do too? Call them.

Good luck, crossing my fingers for you.

SB

Novocastrian

I see the stupidity, but in a nutshell, yes. You can claim for 2014 on your 2015 return .

DandNHill

Thank you chaps!

Aviator

However if the following year you earn back up to $150k, you are getting CTB for the year you earned $20k, a lot more than the $150k earner would get.
Many people, if overpaid in one year, would suffer more hardship if they had to repay the following year or would not repay.

You can claim for this year when you file you 2014 taxes. This is why social assistance is in place, for those that have sudden unexpected hardship.

Oakvillian

Exactly this. I was in a somewhat similar situation a couple of years ago. Exceedingly low overall annual income, not much in the way of tax credits etc, having to really watch every last penny. Following year, was back in employment but the bank account was topped up regularly with Federal payments that by then weren't nearly as critical as they would have been the previous year. Still, they helped to pay down the by-then-worryingly-large line of credit a bit...

BristolUK

What about this for logic.

My mother in law qualified for GIS and, thus, the Seniors Drug Program.

She cashed in some sort of fund that had been paying her an income and paid off a loan.

Canada Revenue classed that as income - not entirely unexpected, but then the GIS was withdrawn as the previous year's "income" was too high.

Because GIS was withdrawn, she no qualified for the Seniors Prescription Program.

So in the year she was missing the pension income AND the GIS and, therefore, living below GIS levels she lost her drug coverage.

DandNHill

ludicrous!!!!