Canada Disability Benefit

The Canada Disability Benefit – June, 2025Canada Disability Benefit

Big News! New Support for Canadians with Disabilities!

Canada is rolling out the Canada Disability Benefit (CDB) – think of it as a helping hand with direct financial support if you’re a person with a disability.

Here’s the Lowdown:

  • Who’s it for? People with disabilities aged 18 to 64.
  • When’s it happening? You can start qualifying in June 2025, with actual payments expected to begin in July 2025.
  • Who’s running the show? Service Canada.
  • How to apply? Details on applying are coming soon, so keep an eye on the official government page!

Could YOU Get It? Here’s What You’ll Likely Need:

  1. Age: Be between 18 and 64.
  2. Disability Tax Credit (DTC): You must already be approved for this. This is a big one!
  3. Taxes Done: You (and your spouse/partner, if you have one) need to have filed your 2024 federal income tax return.
  4. Canadian Resident: For tax purposes, and be a:
    • Canadian citizen
    • Permanent resident
    • Registered or entitled to be registered under the Indian Act
    • Protected person
    • Temporary resident who’s lived in Canada for the past 18 months.

How Much Are We Talking?

  • Maximum Benefit: You could get up to $200 per month (that’s $2,400 a year!).
  • Inflation Proof: This amount will be adjusted for inflation each year.
  • Back Payments? Possibly! You could get payments for up to 24 months before your application, but not for any time before July 2025.

Important: Your Income Matters!

This benefit is “income-tested,” meaning the amount you get depends on your family’s income (from your 2024 tax return for the first year).

  • Good News for Workers! (Working Income Exemption):
    • If you’re single, the first $10,000 you earn from work (employment, self-employment, some scholarships) won’t reduce your benefit.
    • If you have a spouse/partner, the first $14,000 of your combined working income is exempt.
  • How it Shrinks (The Basics):
    • If you’re single: If your income (after that 10k work exemption) is $23,000 or less, you get the full $200. For every dollar over $23,000, your benefit reduces by 20 cents.
    • If you have a partner: If your combined family income (after the 14k work exemption) is $32,500 or less, the eligible person(s) get the full benefit.
      • If only one of you is eligible for CDB: For every dollar over $32,500, their benefit reduces by 20 cents.
      • If both of you are eligible for CDB: For every dollar over $32,500, each of your benefits reduces by 10 cents.

Think of it like this: The government wants to give you a boost, especially if your income is lower. If you’re working, you can earn a certain amount before it starts to affect your benefit.

Source: https://www.canada.ca/en/services/benefits/disability/canada-disability-benefit.html