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Apply for the Canada Child Benefit once the birth is registered, and file your return every year, because the payment depends on it. EI maternity and parental benefits are taxable income.
After a baby arrives in Canada, apply for the Canada Child Benefit once the birth is registered. It is tax-free, and it is recalculated from your family income. Employment Insurance leave payments are taxable, daycare costs can often be deducted by the lower-income parent, and both parents need to file a return for the benefit to keep flowing.
How do I get the Canada Child Benefit?
Apply for the Canada Child Benefit as soon as the birth is registered. It’s a monthly payment, and how much you get depends on your family income and the number and ages of your children. The good part: it’s tax-free, so it doesn’t add to your income. The CRA’s Canada child benefit overview explains who qualifies. You can estimate yours with the child benefit calculator, and the article on child benefits and credits by age shows how the picture shifts as your child grows.
Is maternity and parental leave pay taxable?
Yes. Maternity and parental payments from Employment Insurance are taxable income, and some tax may be taken off at the source. Your slip arrives the following February. Expect a smaller paycheque than you had at work, and set a few bucks aside in case you owe a bit at tax time. The maternity and parental leave calculator shows what you might receive, and the EI calculator covers the rest. Choosing between the two parental options? Read standard versus extended parental benefits first.
Can I deduct childcare costs?
Often, yes. Keep the receipts from the daycare or caregiver. The CRA’s page on who can claim the deduction says it is generally the spouse or common-law partner with the lower net income, even if that income is zero, with a few exceptions. The child care expense deduction calculator shows the tax saved. Other credits also change once you have a child, and the tax credits calculator covers the common ones.
Why does filing on time matter so much?
The benefit is recalculated from your return, so a late or missing return, yours or your partner’s, can hold up your payments. Is one of you earning nothing? That return still needs filing. See benefits and credits for more.
What should I keep close in the first year?
Put the document checklist where you will see it, mark the tax calendar for slip season in February and for filing day, and skim the filing guide before you start. Rules differ by province in places, and the province index is the quickest way to find yours.
We share general information here, not advice for your own return, and we don’t prepare returns or act for the CRA. Your own slips, province and family can change the answer. Where this page and a CRA letter disagree, go with the letter, and ask the CRA or a qualified preparer if you’re stuck.
Frequently asked questions
Do I need to file a tax return to get the Canada Child Benefit?
Yes. You and your spouse or common-law partner both need to file, even with no income.
Is maternity or parental leave pay taxable?
Employment Insurance maternity and parental benefits are taxable income, and you report them on your return.
Who claims childcare expenses, me or my partner?
Generally the spouse or common-law partner with the lower net income, even if it is zero, with a few exceptions. You need the receipts, and the expenses must have been paid so someone could work, run a business or study.
Does the benefit depend on my income?
Yes. It's based on your family net income and the number and age of your children, and it's recalculated each year after you file.
When should I apply for the Canada Child Benefit?
As soon as the birth is registered. The benefit is a monthly payment, it is tax-free, and the CRA works out the amount from your family income and the number and ages of your children.