Canada Fed Deposit: Down to the Basics

As a Canadian citizen, you’ve probably seen a deposit titled “Canadian Fed” in your bank account. After the initial excitement, you might mistake it for a stimulus check, but you’d be wrong. So, in this article, we’ll discuss everything you need to know about the Canada Fed deposit, which programs constitute it, eligibility requirements, payment dates, and alternatives.

Interested in learning more? Let’s break it down! 

What Is the Canada Fed Payment?

Before we get into the meat and potatoes, let’s be clear about the Canadian Fed Payment

This sum is a government-issued deposit given to eligible Canadian citizens. By its name, we can determine that as a federal payment in Canada, this deposit is handled separately from provincial incentives, allowing every Canadian from every province a chance to apply.

Accordingly, this direct deposit comes from the Canada Revenue Agency (CRA), which handles all tax returns. Furthermore, it’s composed of three different types of benefits: the Canada Child Benefit, the GST/HST Tax credit payment, and the Canada Workers Benefit

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Government Programs Under the Canada Fed Deposit

Even though three government programs comprise this deposit, it doesn’t mean that every taxpayer receives benefits from all of them. Some might, of course, but they would need to fulfill the eligibility requirements for each program separately. Moreover, it’s important to note that the CCB and the GST/HST Tax credit are not considered taxable income, while the CWB is.  

Let’s go over them below.

Canada Child Benefits (CCB)

The Canada Child Benefit (CCB) is a government program that aids medium-low-income households with children. It’s a monthly tax-free payment to help families cover the costs of raising kids.

For this federal benefit payment, Canada usually bases the amount on the number of eligible children in the family and your adjusted net income for the previous tax year. To avoid confusion, eligible children are those under 18 when you file your tax returns.

For children under the age of 6, the maximum CCB per child is $6.833 per year or $569.41 per month. However, for children aged 6 to 17, the maximum is $5,765 per year or $480.41 per month. And, if you have a disabled child under 18, you may qualify for the Child Disability Benefit, with maximum benefits of $2,915 per year or $242.91 per month. 

Eligibility requirements

To qualify for the Canada Child Benefit, you need to meet the following conditions:

  • Be a Canadian resident
  • Live with a child under the age of 18
  • Be the child’s primary guardian or caregiver 
  • Meet the income threshold

Moreover, to qualify for the Child Disability Benefit, you must also be eligible for the CCB, while your child must be eligible for the disability tax credit.

Payment Dates in 2022

We’ve put together a list of the CCB payment dates to ensure you remember when your payments are due, as they are separate from the general tax season. The government pay dates for 2022 are as follows:

  • January 20, 2022
  • February 18, 2022
  • March 19, 2022
  • April 20, 2022
  • May 20, 2022
  • June 20, 2022
  • July 20, 2022
  • August 19, 2022
  • September 20, 2022
  • October 20, 2022
  • November 18, 2022
  • December 13, 2022

GST/HST Tax Credit Payments

Next, let’s talk about the Goods and Services Tax (GST)/Harmonized Sales Tax (HST). This credit is a quarterly payment from the government made to individuals or families with lower incomes. Like the CCB, it is a tax-free payment that aims to offset some sales taxes you’ve paid over the year.

This Canada Fed deposit is processed for the previous year’s net income. The government calculates your amount according to your earnings for the year prior, whether you’re married or in a common-law relationship, and whether you have children. 

Therefore, the maximum benefit amount is $456 per year for singles, $598 for married individuals, and an additional $157 for every child under the age of 19.     

Eligibility requirements

Now let’s see who’s eligible for the GST/HST tax credit. To qualify for this benefit, except being a Canadian resident, you’ll need to meet at least one of the following criteria:

  • Be at least 19 years of age
  • Have/had a spouse or common-law partner (for increased benefits)
  • Have/had a biological child for whom you are the primary caregiver (for increased benefits)

Payment Dates in 2022

This Canada Fed payment occurs four times this year, on the following dates:

  • January 5, 2022
  • April 5, 2022
  • July 5, 2022
  • October 5, 2022

Canada Workers Benefit (CWB)

Finally, we’ll do a brief overview of the Canada Workers Benefit. This federal benefit payment is Canada’s attempt to help working individuals and families with lower incomes. Therefore, this is a refundable tax credit that you can claim when filing your tax returns. Unlike the other two benefits, it’s essential to remember that this payment is considered taxable income.

Similar to the previously discussed benefits, the amount you receive from the CWB depends on your adjusted net income and several other factors. Therefore, the maximum basic CWB is $1,381 per year for singles and $2,379 for families. However, eligible recipients can also receive a disability supplement of up to $713.

Eligibility requirements

Furthermore, the CWB differs from the other two in terms of eligibility criteria. Generally, to qualify for the primary benefits, you must:

  • Be a Canadian resident
  • Be employed 
  • Be the age of majority
  • Live in Canada for the whole tax year

To reap the benefits of spousal and common-law arrangements, you must:

  • Live together as of December 31
  • Both qualify for the Canada Workers Benefit 

If you also have dependents, they need to fulfill the following criteria:

  • Be lawful children of the spouses or common-law partners
  • Be under the age of 19
  • Not qualify for the CWB

Payment Dates in 2022

Finally, we’ll list the government pay dates for the Canada Workers Benefit, which are the same as the GST/HST credit:

  • January 5, 2022
  • April 5, 2022
  • July 5, 2022
  • October 5, 2022

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Alternatives

Apart from Canada Fed deposits, you can also receive additional benefits from other programs, such as the Canada RIT deposit and the Canada PRO deposit. Let’s take a look at what they are.

Canada RIT Deposit

The Canada Refund Income Tax (RIT) deposit is another payment you might see in your bank account. Therefore, the Canada Revenue Agency sends this direct deposit to eligible taxpayers who receive a tax return. It usually arrives between one to six weeks after filing your returns, but it might also come at a random time and surprise you. 

Again, the amount you receive depends on your taxable income, how much tax you have remitted to the CRA, and your tax liability. 

Canada PRO Deposit

The Canada PRO deposit is meant for residents of Alberta and Ontario. Namely, it is a deposit description for the Ontario Trillium Benefit (OTB) and the Alberta Child and Family Benefit (ACFB). 

The former is for low-medium income Ontarians, provided they qualify for:

  • Ontario Energy and Property Tax Credit
  • Ontario Sales Tax Credit
  • Northern Ontario Energy Credit

On the other hand, the ACFB aims to help Albertan taxpayers with one or more children under 18, provided they meet the income threshold. 

How to Use Your Canada Fed Deposit?

Now that you know all about the Canada Fed deposit and its alternatives, how can you use this money to your advantage? 

Well, there are a few different ways you can put your benefits to good use. Generally, you can save your money for a rainy day or invest in your future. But if you’re in debt, you can use the Canada Fed deposit to pay it off and help yourself get back on track financially.  

In the case of child benefits, you can contribute a portion of your received funds to your child’s RESP account. Since the government matches RESP contributions (by up to $500), you can get up to $7,200 in grant money and give your child a head start. 

On the other hand, if you’re looking to save, consider putting the money into a high-interest savings account to help you earn more on your funds. However, if you’re leaning towards investing your deposit, you can put it in a TFSA or an RRSP.

No matter how you choose to use your Canada Fed payment, make sure that it aligns with your financial goals. 

Conclusion

That’s all, folks! Everything you need to know about the elusive Canada Fed deposit

Sure, free money is great, but instead of recklessly spending your benefits, consider putting them to good use. After all, you never know when you might need a little extra! 

FAQ

What is the Canada Fed Deposit?

The Canada Fed deposit is a sum of money administered by the CRA as a tax refund on your tax returns, signifying that you qualify for one or a combination of the benefits from the Canada Child Benefit, GST/HST Tax credit payments, and the Canada Workers Benefit.

How can I confirm my Canada Fed payment?

Following payments to the CRA, you can confirm them through the CRA My Account, under “Accounts and payments”.

ABOUT AUTHOR

When Angela combined her deep-seated love for linguistics with her growing interest for finance and money management, she struck a gold mine. She’s scoured the internet far and wide for all things related to money and finances, including payments, budgeting and investing. Now she’s eager to share her knowledge and skills with the world, determined to make it a better place. In her free time, she loves to read a good book.

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