Child Tax Benefits After Separation in Ontario: What Parents Need to Know

What Is the Canada Child Benefit?

The Canada Child Benefit (CCB) is a tax-free monthly payment from the federal government to help families with the cost of raising children under 18 years of age. The amount is determined by the number of eligible children, their ages, and the family’s net income as reported on their annual tax returns.

Who Receives the CCB After Separation?

The CCB is paid to the parent who is primarily responsible for the care and upbringing of the child. This is generally the parent with whom the child primarily resides. Where parenting time is shared equally (each parent has the child at least 40% of the time), the CRA may split the benefit, paying each parent for alternating months.

Notifying the CRA of Your Separation

After separation, both parents should notify the Canada Revenue Agency (CRA) of their new marital status and living arrangements. Failing to update the CRA can result in overpayments that must be repaid, or underpayments that leave money on the table. This can be done through My Account on the CRA website.

How the CCB Interacts With Child Support

The CCB is a separate government benefit and does not substitute for child support. Child support under the Guidelines is based on the paying parent’s income and the number of children — it does not reduce because the other parent receives CCB. However, the CCB may affect the recipient parent’s ability to demonstrate financial need if spousal support is also at issue.

Other Child-Related Benefits

• Ontario Child Benefit: a provincial supplement for lower-income families with children.
• GST/HST Credit: payments for lower-income individuals and families, which may be available to a single parent.
• Disability Tax Credit and Child Disability Benefit: available where a child has a significant physical or mental disability.
• Eligible Dependant Credit: a tax credit available to a single parent who supports an eligible child.

Tax Implications of Separation for Parents

Separation has broader tax implications beyond child benefits. Child support payments are neither deductible for the payor nor taxable for the recipient under current Canadian tax law. Spousal support, however, is generally deductible for the payor and taxable for the recipient if paid pursuant to a written agreement or court order. Consulting a tax professional after separation is advisable.