Latest news with #ServiceCanada
Time of India
2 days ago
- Business
- Time of India
Canada's new $200/month disability benefit goes live; Apply by June 30 to get paid in July
Canada's new disability benefit program begins accepting applications on June 20, 2025, offering up to $2,400 annually to eligible Canadians with disabilities who have the Disability Tax Credit. Backed by significant federal funding, the program aims to enhance financial security, with first payments scheduled for July 2025 for approved early applicants. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Canada's new disability benefit program is now accepting applications, with the first payments scheduled for July 2025. Canadians aged 18 to 64 who have already qualified for the Disability Tax Credit ( DTC ) and who filed their 2024 tax return, along with any spouse or partner, can open on Friday, June 20, 2025. Those submitted and approved by June 30 will receive their first payments in approved later will still receive their full entitlements, including back payments to June, but no program offers up to $200 per month, or $2,400 per year, with annual inflation adjustments. This amount will be reduced for higher-income and territories (except Alberta) have committed not to claw back existing disability of the federal Disability Inclusion Action Plan , the benefit aims to boost financial security for over 600,000 low-income Canadians with disabilities. It is backed by $6.1 billion over six years, with ongoing $1.4 billion annually, starting in individuals approved for the DTC will receive a letter in June with a unique code and application instructions. However, even without a letter, applicants can still apply by providing their Social Insurance Number and 2024 net incomeApplications are available online, by phone, or in person at Service Canada locations. An estimate tool is also available to help applicants calculate their expected monthly federal government is partnering with community organizations to assist applicants in navigating both the DTC and the Disability Benefit. Direct deposit is encouraged for faster Minister Patty Hajdu acknowledged that the benefit was not designed to fully sustain recipients. She said it provides increased financial autonomy and can be used flexibly alongside other income.
Economic Times
2 days ago
- Business
- Economic Times
Canada's new $200/month disability benefit goes live; Apply by June 30 to get paid in July
Canada's new disability benefit program begins accepting applications on June 20, 2025, offering up to $2,400 annually to eligible Canadians with disabilities who have the Disability Tax Credit. Backed by significant federal funding, the program aims to enhance financial security, with first payments scheduled for July 2025 for approved early applicants. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Canada's new disability benefit program is now accepting applications, with the first payments scheduled for July 2025. Canadians aged 18 to 64 who have already qualified for the Disability Tax Credit ( DTC ) and who filed their 2024 tax return, along with any spouse or partner, can open on Friday, June 20, 2025. Those submitted and approved by June 30 will receive their first payments in approved later will still receive their full entitlements, including back payments to June, but no program offers up to $200 per month, or $2,400 per year, with annual inflation adjustments. This amount will be reduced for higher-income and territories (except Alberta) have committed not to claw back existing disability of the federal Disability Inclusion Action Plan , the benefit aims to boost financial security for over 600,000 low-income Canadians with disabilities. It is backed by $6.1 billion over six years, with ongoing $1.4 billion annually, starting in individuals approved for the DTC will receive a letter in June with a unique code and application instructions. However, even without a letter, applicants can still apply by providing their Social Insurance Number and 2024 net incomeApplications are available online, by phone, or in person at Service Canada locations. An estimate tool is also available to help applicants calculate their expected monthly federal government is partnering with community organizations to assist applicants in navigating both the DTC and the Disability Benefit. Direct deposit is encouraged for faster Minister Patty Hajdu acknowledged that the benefit was not designed to fully sustain recipients. She said it provides increased financial autonomy and can be used flexibly alongside other income.
Yahoo
3 days ago
- Business
- Yahoo
Jamie Golombek lays out everything you need to know about the new Canada Disability Benefit
Applications for the new, much anticipated Canada Disability Benefit (CDB) open on June 20. The tax-free monthly CDB payments are meant to provide financial support to qualifying people with disabilities. The program is administered by Service Canada and the first month of eligibility is June, with the first payments beginning in July for applications received and approved by June 30. To qualify for the CDB, you must be between 18 and 64 years old and be approved for the disability tax credit (DTC). The DTC is a non-refundable tax credit that's intended to recognize the impact of various non-itemizable, disability-related costs. For 2025, the value of the federal credit is 14.5 per cent of $10,138, or $1,470. But add the provincial or territorial tax savings and the combined annual value can be worth up to $3,200, depending on where you live. To qualify for the DTC, you must complete the Canada Revenue Agency's Form T2201, Disability Tax Credit Certificate, upon which a medical practitioner must certify that you have a 'severe and prolonged impairment in physical or mental function.' This form can be completed online or in paper format. Once the form is completed and sent in, the Canada Revenue Agency will either approve the DTC or deny it. If your application is denied, you can appeal the CRA's decision to the Tax Court. If you're still under 18, you can apply for the CDB as early as age 17 1/2, but your application won't be processed until your 18th birthday. This means that you won't get an eligibility decision or any payments until after you turn 18. Assuming you qualify, you'll begin receiving CDB payments the month after your application is received and approved. But don't panic if you don't get approved right away. If you only find out about the CDB well after July 2025, you can get back payments for past months that you were eligible for, but only for up to 24 months from when the government gets your application (and only for months from July 2025 onwards). Individuals who have been approved for the DTC and who meet most of the eligibility criteria will likely have already received a letter this month that includes a unique application code and instructions on how to apply. To complete the application, you'll need your social insurance number and your direct deposit information, as Service Canada is encouraging all applicants to sign up for direct deposit for the 'fastest and most reliable way to get your payments.' If you didn't receive a letter from the government with an application code but you still think you're eligible for the CDB, you can still apply, but you will also need to provide your mailing address and your net income from line 23600 of your recent 2024 notice of assessment. Applications for the CDB can be submitted on the web via the application portal, by phone and in person at a Service Canada Centre as of June 20. To apply for the CDB, you and your spouse or common-law partner (if applicable) must have filed your 2024 federal income tax return(s), and you must be a Canadian resident for income tax filing purposes, among other criteria. Benefit amounts for the July 2025 to June 2026 payment period are calculated using your adjusted family net income for the 2024 tax year. The maximum amount you could receive from July 2025 to June 2026 is $2,400 ($200 per month). This amount will be adjusted upwards for inflation each year to reflect changes in the cost of living. Because the CDB is an income-tested benefit, the benefit amount you will receive will start to decrease after your 'adjusted family net income' reaches a certain threshold. This is basically equal to your combined family net income as reported on line 23600 of both you and your spouse or partner's returns. If your adjusted family net income is considerably above that threshold, your benefit amount could be zero. How exactly your income affects your benefit amount is complicated and will depend on three factors: your marital status; whether you and/or your spouse or partner have income from employment or self-employment and whether you and your spouse or are both receiving the CDB. Note that a certain amount of income from employment or self-employment is excluded when calculating your benefit amount. This is called the 'working income exemption.' If you are single, up to $10,000 of working income will be exempt, and if you're married or living common-law, up to $14,000 of combined working income will be exempt. The government has provided an estimator to find out how much money you could get from the CDB. To get an accurate estimate, start with your and your spouse's or partner's 2024 notices of assessment to input the exact numbers from various lines on the assessments. Finally, keep in mind that the DTC not only entitles you to the new CDB, but it's also the gateway credit to opening up a registered disability savings plan (RDSP). These plans are designed to help build long-term savings for individuals with disabilities. Individuals may contribute up to $200,000 on behalf of a beneficiary who qualifies for the DTC. There is no tax on earnings or growth while in the plan. In addition to the power of tax-deferred compounding, Canada Disability Savings Grants (CDSGs), with a lifetime maximum of $70,000 per beneficiary, and Canada Disability Savings Bonds (CDSBs), with a lifetime maximum of $20,000 per beneficiary, may be received up until the end of the year in which the beneficiary turns 49, depending on family income. Jamie Golombek: July brings a greater opportunity for income splitting Lack of documentation can be fatal when claiming expenses on taxes Original contributions are not taxed when disability assistance payments are ultimately made to the beneficiary, but earnings, growth and government assistance are included in the beneficiary's income. If the beneficiary has zero or minimal other income, the basic personal amount combined with the DTC may allow most or all of the funds to come out of the RDSP tax-free. Jamie Golombek, FCPA, FCA, CFP, CLU, TEP, is the managing director, Tax & Estate Planning with CIBC Private Wealth in Toronto. If you liked this story, in the FP Investor newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
7 days ago
- Business
- Time of India
Canada's groundbreaking $2,400 disability benefit launches June 20; Who qualifies, how to apply, and what they're not telling you
Starting June 20, eligible Canadians with disabilities can apply for the Canada Disability Benefit, a federal program providing up to $200 monthly. Aimed at those with the Disability Tax Credit, the benefit seeks to alleviate poverty, with payments beginning July 2025. While praised as a crucial step, concerns remain about eligibility restrictions and potential provincial clawbacks. Tired of too many ads? Remove Ads Letters mailed Tired of too many ads? Remove Ads Eligible Canadians living with disabilities will be able to apply for the long-anticipated Canada Disability Benefit (CDB) starting June 20, a new federal financial support program aimed at lifting thousands out of deep as part of the federal government's Disability Inclusion Action Plan, the CDB will provide up to $200 per month or $2,400 annually, from July 2025 through June 2026. This landmark benefit targets working-age adults between 18 and 64 who qualify for the federal Disability Tax Credit (DTC) and have filed a 2024 tax return with the Canada Revenue Agency. If applicable, their spouse or common-law partner must also have filed their are being mailed to potentially eligible individuals throughout June. These include a unique code and instructions on how to apply. However, those who do not receive a letter may still apply by providing their Social Insurance Number, 2024 net income (line 23600 on the notice of assessment), and direct deposit can be made online, by phone, or in person at any Service Canada location. The government emphasizes direct deposit as the preferred method to ensure quicker and more reliable payments. Applications received and approved by June 30 will qualify for the first round of payments, expected to begin in the policy rollout are real lives waiting for relief. Laura Chen, 28, from Vancouver, lives with rheumatoid arthritis and describes her financial struggles as 'a constant balancing act.' She said the promise of the new benefit brought her to tears. '$200 might not seem like much, but to me, it's dignity. It means not having to borrow money for groceries or wait until payday to buy medication.'The federal government has committed $6.1 billion over six years to the CDB and an additional $1.4 billion in annual funding thereafter. But critics warn that while the benefit is an important first step, its impact may be groups say the strict eligibility requirements tied to the DTC exclude many people with real disabilities. They also caution that because the CDB is not exempt from means-testing, provinces like Alberta have already announced they will reduce provincial disability assistance dollar-for-dollar—what advocates call a 'clawback.'Other provinces, including Ontario, have yet to clarify whether they will follow many say the program symbolizes long-overdue recognition. Eligible recipients may also receive retroactive payments for up to 24 months, though not for any period before July rollout of the Canada Disability Benefit marks a historic moment in social policy. But its success will depend not only on how many Canadians receive it, but whether it truly brings the financial relief, autonomy, and dignity its architects envisioned.
CTV News
15-06-2025
- Business
- CTV News
Are you eligible for the new Canada Disability Benefit?
Bank of Canada notes are displayed at the Bank of Canada museum in Ottawa on Wednesday, July 12, 2023. (THE CANADIAN PRESS/Sean Kilpatrick) Eligible Canadians can begin applying for the Canada Disability Benefit (CDB) as of June 20. The new benefit, part of the federal government's Disability Inclusion Action Plan, aims to provide financial support to Canadians living with disabilities. Who is eligible? The benefit is available to persons with disabilities between the ages of 18 and 64 who meet several requirements. Some of these requirements include qualifying for the disability tax credit (DTC), filing a 2024 income tax return with the Canada Revenue Agency, or having a spouse or common-law partner who has also filed their 2024 income tax return, if applicable. The federal government will also send letters in June to eligible Canadians to apply. The letters will include a unique application code and instructions on how to apply. According to the program's website, Canadians who do not receive a letter but believe they are eligible can still apply. To do so, they must provide a mailing address and their net income (line 23600) from their 2024 notice of assessment. How to apply Eligible Canadians can apply starting June 20 online, by phone or in person at a Service Canada office. Applicants will need a social insurance number (SIN) and direct deposit information. According to the program's website, Service Canada uses direct deposit because it is more efficient and reliable. A number of community-based organizations across Canada will also provide support throughout the CDB application process, including assistance with applying for the DTC. Canadians whose applications are received and approved by June 30 can expect first payment in July. How much is the benefit? The benefit is calculated based on various factors, including adjusted family net income. The maximum amount is $2,400 annually ($200 per month), from July 2025 to June 2026. The benefit will be adjusted for inflation each year to reflect changes in the cost of living, but the benefit will not decrease if the cost of living goes down. Eligible Canadians may also receive retroactive payments for up to 24 months prior to the date their application is received—but not for any months before July 2025.
