What is the “Canada Fed” deposit in your bank account? If you have received a credit amount on your bank statement with the tag Canada Fed, you may be wondering what the payment is for.
Not to worry. It could be one or a combination of benefit payments made by the Government of Canada.
We cover the four main Canada Fed payments below.
What is Canada Fed?
Canada FED deposits are tax-free payments by the Canada Revenue Agency (CRA) that include:
- Canada Child Benefit (CCB)
- Goods and Services Tax/Harmonized Sales Tax (GST/HST)
- Canada Workers Benefit (CWB)
- Child Disability Benefit (CDB)
Canada FED also sometimes refers to energy rebates from the Government of Canada.
1. Canada Child Benefit
This tax-free benefit is provided to help families offset some of the costs of raising children who are under 18. You can apply for the CCB as soon as your child is born when registering their birth, through your CRA My Account, or by mail.
The current benefit period runs from July 2021 to June 2022 and you get the maximum amount per child if your income is below $32,028.
CCB payments are reassessed each year based on your family net income and are indexed to inflation.
2. Canada Child Disability Benefit
Families with children under age 18 years of age who are eligible for the CCB and Disability Tax Credit (DTC) may qualify for additional monthly Canada Fed payments.
The maximum CDB is paid per child when your adjusted family net income is $69,395 or less.
3. Canada Workers Benefit
Canada Workers Benefit is a refundable tax credit paid to low-income individuals and families.
To qualify, you must be working, reside in Canada, and be at least 19 years of age.
CWB is made up of two components: a basic amount and a disability supplement.
You can get up to half of your CWB in advance which may be the Canada Fed payment in your bank account. The remainder can be claimed when you file your tax return.
To apply for the advance payments, complete the application online through My Account or fill out Form RC201 and mail it to Sudbury Tax Centre, P O Box 2000, Stn A, Sudbury ON P3A 5C1.
4. GST/HST Credit
The GST/HST credit is a tax-free benefit provided to low- and modest-income individuals and families to help them offset the sales taxes they pay.
Learn more about GST and HST payments.
How much is Canada FED in 2021?
How much Canada FED payments can you expect to receive in 2021? It depends on how many of the associated benefit programs you qualify for.
Canada Child Benefit Amount
The maximum CCB per child under 6 is $6,833 per year or $569.41 per month.
For children between ages 6 and 17, the maximum CCB is $5,765 per year or $480.41 per month.
These amounts start decreasing when your adjusted family net income (AFNI) exceeds $32,028.
Child Disability Benefit Amount
The maximum CDB is up to $2,915 per child per year or $242.91 per month.
This amount starts to decrease when your AFNI exceeds $69,395.
Canada Workers Benefit Amount
The maximum CWB basic amount is $1,381 for single individuals. It is reduced when your income exceeds $13,064 and is $0 when your net income exceeds $24,573.
The maximum CWB basic amount for families is $2,379. It is reduced when your net income is more than $17,348 and becomes $0 when you have earned more than $37,173.
The maximum CWB disability supplement for single individuals is $713 (reduces at $24,569; $0 at $30,511.01).
While the maximum CWB disability supplement for families is also $713, it starts to decrease when income exceeds $37,176 and becomes $0 when your net income exceeds $49,060.
For the current benefit period (July 2021 – June 2022), the maximum GST/HST credit is up to:
- $456 for single individuals
- $598 if you are married or in a common-law relationship
- $157 per child under age 19
What are Canada Fed Deposit Payment Dates?
Canada Fed deposit dates vary depending on the benefit you qualify for:
|Canada Child Benefit||Canada Workers Benefit||GST/HST Credit|
|January 20, 2021||April 5, 2021||January 5, 2021|
|February 19, 2021||July 5, 2021||April 1, 2021|
|March 19, 2021||October 5, 2021||July 5, 2021|
|April 20, 2021||January 5, 2022||October 5, 2021|
|May 20, 2021||January 5, 2021|
|June 18, 2021|
|July 20, 2021|
|August 20, 2021|
|September 20, 2021|
|October 20, 2021|
|November 19, 2021|
|December 13, 2021|
The Child Disability Benefit is paid alongside the CCB.
If the total amount for your CCB is less than $240, a lump sum payment is sent in July.
Is Canada Fed Taxable?
Canada Fed deposits are not taxable and you don’t need to include benefits like CCB or GST in your taxable income.
At tax time, you can claim any outstanding Canada Workers Benefit you are being owed.
Canada Fed FAQs
This is likely because you qualify for one or a combination of the Canada Child Benefit (CCB), Canada Workers Benefit (CWB), or GST/HST credit.
It varies. If you qualify for the maximum CCB paid as Canada Fed in 2021, you get up to $6,833 per child. For GST/HST credit, the maximum amount per single individual is $456.
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