Tax and Planning Help for Families

A new baby, a teenager's first paycheque, a separation. Most family changes show up somewhere on a tax return, and often in your benefit payments the following July.

When a baby arrives

Apply for the Canada child benefit (CCB) as soon as your child is born. BC is one of the provinces where you can register the birth online, and you can apply for the CCB inside the birth registration form by consenting to the province sharing your information with the CRA. Apply that way and you don't need to send proof of birth. If you missed it, you can apply later through your CRA account. The same application covers related provincial programs.

Benefits run on family net income

The CCB is a tax-free monthly payment for children under 18. The amount depends on how many children you have, their ages and your adjusted family net income from the previous year's returns, and it's recalculated every July. The Canada Groceries and Essentials Benefit, which replaced the GST/HST credit in July 2026, is also based on adjusted family net income.

So both spouses have to file every year, even with no income. File by April 30 to keep the payments coming without a gap. If your marital status changes, you have to tell the CRA.

Child care costs

Payments to a babysitter, a daycare or a day camp so you can work or go to school can be deducted on line 21400, using Form T778. In a two-parent home, the person with the lower net income generally makes the claim. Under the Income Tax Act, the yearly limit is $8,000 for a child under 7, $5,000 for an older eligible child and $11,000 for a child who qualifies for the disability tax credit. The total also can't be more than two-thirds of the claimant's earned income. Our answer on how childcare deductions work has more.

Saving for school

When you contribute to a registered education savings plan (RESP), the federal Canada Education Savings Grant adds 20% of the contribution, within yearly limits, and lower-income families can get an additional amount. The grant tops out at $7,200 per child over their lifetime.

Teens, students and your spouse

For a teenager's first job, see my teenager started working, and our post on student tax returns once they're in post-secondary. If you supported a spouse or common-law partner whose net income was below your basic personal amount, you may be able to claim the spouse or common-law partner amount. Only one of you can claim it in a year.

When the family changes shape

A separation changes who claims what and how your benefits are worked out. In the year you separate, for example, the spouse amount is reduced by your spouse's net income from before the separation, and if you paid support you claim either the support or the spouse amount, whichever is better for you. Our post on separation and divorce planning goes through the rest.

How we help

We prepare personal returns for individuals and couples and explain what we did in plain English. Child care receipts are on the list of things to bring. For the bigger questions, like what happens to the numbers if the family changes shape, family planning and marriage separation planning are part of our consulting work.