Raising a child with disabilities comes with unique challenges, and the financial burden can be significant. Fortunately, the Canadian government offers support through the Child Disability Benefit (CDB) program. If you’re caring for a child with a severe and prolonged impairment in physical or mental functions, here’s what you need to know about this valuable resource.
What is the Child Disability Benefit?
The Child Disability Benefit (CDB) is a tax-free monthly payment designed specifically for families caring for children under 18 with severe and prolonged impairments. This benefit supplements the Canada Child Benefit (CCB) and provides additional financial support to help offset the costs associated with raising a child with disabilities.
Eligibility Requirements
To qualify for the Child Disability Benefit, two key conditions must be met:
- You must be eligible for the Canada Child Benefit (CCB)
- This means you must be the primary caregiver for a child under 18 who lives with you
- Your child must be eligible for the Disability Tax Credit (DTC)
- A medical practitioner must certify on Form T2201 (Disability Tax Credit Certificate) that your child has a severe and prolonged impairment
- The Canada Revenue Agency (CRA) must approve this certification
The good news is that if you’re already receiving the CCB and your child qualifies for the DTC, you don’t need to submit a separate application for the CDB—it will be automatically added to your monthly payments.
Financial Support: How Much Can You Receive?
For the benefit year running from July 2024 to June 2025, families can receive up to $3,322 annually ($276.83 per month) for each child who qualifies for the Disability Tax Credit.
The exact amount depends on two factors:
- The number of eligible children in your family
- Your adjusted family net income (AFNI)
Benefits begin to decrease when your adjusted family net income exceeds $79,087. The reduction is calculated as follows:
- For families with one eligible child: 3.2% of income above $79,087
- For families with two or more eligible children: 5.7% of income above $79,087
To estimate your potential benefit amount, you can use the child and family benefits calculator provided by the CRA.