What does the Canada Fed deposit on your bank statement mean?
If you have recently received a payment in your bank account tagged as “Canada Fed”, don’t worry. It is more than likely from the Government of Canada.
What is Canada Fed?
Canada Fed is a direct deposit payment made by the Canada Revenue Agency (CRA).
It often signifies that you qualify for one or a combination of benefits including:
- Canada Child Benefit (CCB)
- Child Disability Benefit (CDB)
- Goods and Services Tax (GST/HST)
- Canada Workers Benefit
Canada Fed Payment Dates in 2021
Depending on the program you are eligible for, Canada Fed payments in 2021 occur as follows:
1. Canada Child Benefit
The Canada Child Benefit is a monthly tax-free payment made to eligible families to help them with the costs of raising kids.
For the rest of 2021, CCB is paid on:
- September 20, 2021
- October 20, 2021
- November 19, 2021
- December 13, 2021
How much CCB will you get?
The maximum CCB per child under age 6 is $6,833 per year or $569.41 per month.
For kids aged between 6 and 17 years, the maximum amount is $5,765 per year or $480.41 per month.
How much you receive is dependent on how many eligible kids you have and your adjusted family net income for the last tax year.
The federal government recently introduced additional child benefits and supports for eligible families via the Canada Child Benefit Young Children supplement (CCBYCS).
The maximum amount payable is $1,200 per child under age 6 and the final CCBYCS payment for 2021 is on October 29, 2021.
2. Canada Child Disability Benefit
Families with children under 18 who have a qualifying disability may be eligible for the child disability benefit.
How much CDB will you get? The maximum benefit per child is $2,915 per year or $242.91 per month.
CDB is paid monthly on the same date as the CCB.
3. GST/HST Credit
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) is a quarterly tax-free benefit paid to low- and modest-income individuals and families.
This benefit helps them to offset the sales taxes they pay during the year.
GST/HST credit payments for 2021 occur on these dates:
- January 5, 2021
- April 1, 2021
- July 5, 2021
- October 5, 2021
How much will you get?
The GST/HST credit in 2021 is up to $456 if you are single, $598 if you are married or have a common-law partner and $157 per child under age 19.
4. Canada Workers Benefit
The Canada Workers Benefit (CWB) is a refundable tax credit to help individuals and families who earn a low income while working.
CWB payments in 2021 occur on the same dates as the GST/HST credit:
- January 5, 2021
- April 5, 2021
- July 5, 2021
- October 5, 2021
The maximum basic CWB for single individuals is $1,381 per year and it is $2,379 for families.
How much will you get?
How much you receive is dependent on your adjusted net income and where you reside. A CWB disability supplement of up to $713 is also paid to eligible recipients.
Who is Eligible For Canada Fed Payments?
You can receive Canada Fed payments if you meet the conditions for each applicable program.
To qualify for CCB, you must:
- Be a legal resident of Canada for tax purposes
- Live with a child who is under 18
- Be primarily responsible for raising your child
- Meet the income thresholds
For the child disability benefit, you must qualify for the CCB and your child has to be eligible for the disability tax credit.
To qualify for the GST/HST credit, you must be:
- A Canadian resident for income tax purposes, and
- Be 19 years or older, or
- Have (or have had) a spouse or common-law partner, or
- Are a parent (or were) and live (or lived) with your child
To qualify for the Canada workers Benefit, you should be 19 years of age or older, earn employment income, and be considered a Canadian resident for income tax purposes.
Is Canada FED Taxable?
Canada Fed payments are non-taxable.
To receive the benefit, file your tax return annually even if you haven’t earned taxable income.
Up to 50% of Fed CWB payments can be paid out to recipients in advance. The remainder is claimed on your income tax return.
How To Put Your Canada Fed Deposit to Use
Maximize the child benefit payments by contributing all or a portion of it to your child’s RESP account.
RESP contributions are matched by the Canadian government up to $500 per year, and you could get up to $7,200 in total grant money.
If you don’t have an emergency fund, you can deposit your Canada Fed payments into a high-interest savings account.
One of the best savings accounts in Canada is the EQ Bank Savings Plus Account.
It offers unlimited free debits and Interac e-Transfers and has no monthly fees. It also pays a 1.25% interest rate.
Lastly, you can invest your Fed windfall in a registered or non-registered investment account.
Here’s an in-depth guide on Canadian investment accounts.
Canada Fed FAQs
Check your CRA My Account to see which of the benefits you qualify for. You can also contact the CRA by phone at 1-800-387-1193.
The direct deposit payment from the Government of Canada is either related to the Canada Child Benefit, GST/HST credit, or Canada Workers Benefit.
Related:
- What is Canada FPT Deposit?
- What are Canada PRO Deposits?
- What is the Home Energy Retrofit Program?
- Best Cash Back Websites
Have you received a Canada Fed payment that is unrelated to any of the programs on this list? Let us know in the comments.
