The Child Disability Benefit (CDB)

The Child Disability Benefit (CDB) is a tax-free benefit in Canada designed to provide additional financial assistance to families caring for a child who has a medical condition that qualifies for the disability tax credit. This benefit is administered by the Canada Revenue Agency (CRA) and is intended to help offset some of the extra costs associated with caring for a child with a disability / medical condition.

Key features of the Child Disability Benefit include:

1. Eligibility Criteria:
   • The child must be under the age of 18.
   • The child must be eligible for the Canada Child Benefit (CCB).
   • The child must be eligible for the Disability Tax Credit (DTC). The DTC is a prerequisite for the CDB, and it involves demonstrating that the child has a severe and prolonged impairment in physical or mental functions.
2. Tax-Free Benefit:
   • The CDB is a tax-free monthly payment. It does not affect other benefits, such as the Canada Child Benefit (CCB) or provincial/territorial assistance programs. The maximum amount you may be eligible to receive for the period of July 2023 to June 2024 is $3,173 for each child that qualifies.  The amount you receive is calculated in July of every year based on your previous income tax return filed. The amount you receive will be reduced if your family net income exceeds $75,537.
3. Application Process:
   • To apply for the Child Disability Benefit, your child must first qualify for the Disability Tax Credit. To qualify for the disability tax credit, you will need to complete the form, T2201 Disability Tax Credit Certificate. If would like a free eligibility assessment or assistance with the process, you can request a free review here and we’ll get back to you right away.
4. Retroactive Payments:
   • The CDB can be retroactive for up to 10 years, depending on when the child became eligible for the Disability Tax Credit. This can result in a significant retroactive payment, especially when combined with the base Disability Tax Credit refund amount of over $45,000.
5. Amount of Benefit:
   • For the period of July 2023 to June 2024, the full amount is $3,173. That amount is adjusted if you have two or more children who qualify and if your family net income is above $75,537.
6. Other Benefits:
   • If your child qualifies for the Disability Tax Credit and Child Disability Benefit, you will want to look into and set up a Registered Disability Savings Plan (RDSP). It’s a long-term savings program where the government matches contributions made. It is worth looking into and setting up to assist with establishing the financial security of your child in the future. You can read more about the RDSP here, ‘What is the Registered Disability Savings Program?‘

The Child Disability Benefit is a valuable support for families with children facing significant challenges due to a medical condition.

Request a free review and we will advise you if you or your child qualify for the disability tax credit, child disability benefit, and other related programs.

Commonly Asked Questions about the Child Disability Benefit

• Who is Eligible for the Child Disability Benefit (CDB)?
  
  • Any child (under 18) who qualifies for the Canada Child Benefit and then qualifies for the Disability Tax Credit qualifies for the CDB. Any medical condition can qualify for the disability tax credit so long as the condition affects the child’s ability to perform one or more of the basic activities of daily living (these can include: concentrating, attention, judgment, adaptive functions, verbal and non-verbal learning, memory, walking, getting dressed, elimination (bowel and bladder function), among many others. To find out if your child qualifies, request a review.
    

• Is the Child Disability payment monthly?
  • Yes, it is.  The maximum monthly amount for the period of July 2023 to June 2024 is $264.41 per child who qualifies. The amount received is calculated each year in June, based on your previous year’s family net income, and the number of children you have who qualify.

• How much is the Canada Child Disability Benefit (CDB)?
  • For the period of July 2023 to June 2024, the maximum amount is $3,173 per child who qualifies, broken down and distributed into monthly payments. The amount received will change based on your family net income and amount of children you have who qualify.

• Does the Child Disability Benefit back pay?
  • Yes, it does. You can claim the Child Disability Benefit retroactively / back to when your child first qualified for the Disability Tax Credit, up to a maximum of ten calendar years (for example: back to 2014 in the year 2024, if your child qualified for the DTC dating back to that time.) This can result in a substantial return, so should not be overlooked.  This is one of the reasons why it’s important to make sure that when you apply for the Disability Tax Credit for your child the application is done correctly, otherwise you may miss out on substantial benefits you should be eligible to receive.  The disability tax credit refund, combined with the child disability benefit can result in a substantial amount totaling over $45,000.

• What Benefits Can I Claim for My Child with a Medical Condition in Canada?
  • In addition to the Disability Tax Credit (DTC) and the Child Disability Benefit discussed above, you may also be eligible for additional benefits including the Canada Caregiver Credit, being able to claim tuition as a medical expense, the Registered Disability Savings Plan (RDSP) which provides the Disability Grant and Disability Bond program, among many other benefits and programs. Getting approved for the disability tax credit is the gatekeeper in a way, to many other benefits.

• Can I claim if my child has ADHD / or another medical condition/disability? 
  • Yes, many medical conditions qualify for the Child Disability Benefit and Disability Tax Credit.  Including, ADHD, anxiety, depression, autism and Asperger’s syndrome, diabetes, and many more. It’s not so much the diagnosis that qualifies someone for the benefit, it’s primarily the symptoms they experience and their impact on the basic activities of daily living. These include but are not limited to concentrating, attention, judgment, adaptive functions, verbal and non-verbal learning, memory, walking, getting dressed, and elimination (bowel and bladder function). You can read a list of Medical Conditions that may qualify here.  Keep in mind that everyone’s situation and symptoms are unique. To find out if you, your child, or a loved one qualifies for the DTC, CDB, or related benefits, request a free review.