Got a Child? See if You Qualify for this $6,867.50 Child Benefit

Parents shouldn’t miss out on the child benefits if they’re qualified. The monthly payments are tax-free. Those with money to spare can invest in the Summit Industrial stock to boost family income.

| More on:
stock data

Image source: Getty Images

Canadian parents do not lack financial support during the pandemic. The Canada Child Benefit (CCB) is a vital part of the federal government’s policy to help middle-class families cope with increasing living and child-rearing costs. This year is extremely stressful for parents because of school closures and stay-at-home directives.

The Canada Revenue Agency (CRA) administers the program and pays out tax-free monthly payments to eligible families. The CCB may include the child disability benefit and any provincial and territorial programs. Because of the pandemic, the CRA paid out an extra or one-time $300 per child on top of the regular CCB benefit in May 2020. If you have a child, you should receive a total of $79,110, at least, in 2020.

CCB benefit amount

A CCB benefit year is from July of the current year to June of the next year. The CRA calculates the benefit amount based on the information contained in a tax return. Payment dates are every 20th of the month.

In the 2019-20 benefit year, families could get as much as $6,496 per child under six and up to $5,481 per child between six and 17. On May 4, 2020, Canada’s Employment Minister, Jean-Yves Duclos, announced the benefit amounts for the benefit year 2020-21.

Under the new CCB boost, parents will receive $6,639 per child under age six and $5,602 per child between six and 17. Thus, the CCB benefits breakdown is as follows:

  • January to June 2020: $6,496/12 = $541.33 x 6 = $3,248.00
  • May 2020 top-up: $300 x 1 = $300.00
  • July to December 2020:  $6,639/12 = $553.25 x 6 = $3,319.50

The changes are significant because parents with kids under the age of six will have an extra $71.50 for the rest of 2020. Families with children can add $60.50 more to their pockets.

Increase your family income

Parents who have been saving their CCB benefits for a rainy day can further grow their cash hoard. A $2.22 billion real estate investment trust (REIT) is an excellent source of passive income. The Summit Industrial (TSX:SMU.UN) trades at $13.25 per share and pays a decent 4.08% dividend.

A $50,000 investment, for example, will generate an extra $2,040 to add to your household purse. The REIT is among the reliable dividend payers because light industrial properties are in high demand today. Summit owns and leases out 160 income-producing assets.

High-value generic-use space properties are highly marketable, especially during the pandemic. Online retailers need warehouses, storage facilities, and distribution centers. Tenants can also set up light assembly and shipping plants or call centers. Summit spends little on capital expenditures, maintenance costs, leasehold improvement.

More important, there’s long-term strength and stability in the industrial sector. Since market rent volatility is low, Summit generates stable cash flows and delivers income returns in the real estate industry’s top range. In the nine months ended September 30, 2020, net rental income increased by 40.8% versus the same period last year.

Reinstate your CCB benefits

Parents who didn’t file their 2019 tax returns but eligible to receive benefits for the 2020-21 benefit year will not receive payments starting October 2020. File your tax returns soonest so the CRA can assess the benefit amount and reinstate the payments. Don’t miss out on the CCB benefits because the monthly payments are tax-free.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends SUMMIT INDUSTRIAL INCOME REIT.

More on Dividend Stocks

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »