Canada Fed Deposit (Aug 2022): Payment Dates & Eligibility

August 14, 2022
Blog
Canada Fed Deposit

You may have noticed a direct deposit named “Canada Fed” made to your bank account, but you’re not sure what it is or why it’s been deposited. If you’re doing budget or tax planning, though, it’s important to figure out where that deposit comes from and why it’s being paid to you.

“Canada Fed” is one of a handful of direct deposits that come from the Canadian government. In this post, we’ll dig into why the deposit is made, what it’s for, and when you can expect to receive it again.  

What is the Canada Fed Deposit?

The Canada Fed deposit is a payment made by the Canada Revenue Agency (CRA) into the bank accounts of eligible individuals on behalf of the Canadian federal government. The Canada Fed deposit is treated as separate from other provincial or territorial benefits, making it available to all Canadian citizens regardless of which province or territory they live in.

If you receive a Canada Fed deposit, you might also be eligible to receive any of the following government benefits:

  • Canada Child Benefit (CCB) 
  • Canada Workers Benefit (CWB) 
  • GST/HST Credit

The Canada Fed deposit is issued to low-income and middle-income Canadians to improve their quality of life and help them provide for themselves and their families. It’s achieved by issuing rebates, tax credits, and other government benefits through the Canada Revenue Agency (CRA) to these specific individuals. 

All the Canada Fed deposit payments are non-taxable, except for the Canada Workers Benefit (CWB). The payments may be made for one or a combination of the benefits for which the individual is eligible, which is why your Canada Fed deposit may arrive in a different amount than it does for other people.

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Constituent Programs of the Canada Fed Deposit

Individuals who receive Canada Fed deposits are eligible beneficiaries of one or a combination of several of the benefit programs paid by the Canada Fed. These programs include: 

Canada Child Benefit (CCB)

The Canada Child Benefit (CCB) is a non-taxable, monthly government benefit paid to eligible low-income and middle-income families to assist with the costs of raising children. The benefit is issued by the CRA to Canadian families who have eligible children under the age of 18. 

Eligible families may also be beneficiaries of related provincial and territorial benefit programs, depending on the province or territory they live in. The amount you’re eligible to receive is based on the number of eligible children in your care, as well as your Adjusted Family Net Income (AFNI). 

Canada Workers Benefit (CWB)

The Canada Workers Benefit (CWB) is a government-sponsored refundable monthly payment made to low-income and middle-income working Canadians. 

The program aims to offer tax relief to working Canadians and reduce poverty levels in low-income earning Canadians as well as encourage other Canadians to join the workforce.

The CWB was introduced in 2019 as a replacement for the Working Income Tax Benefit (WITB).

The Canada Workers Benefit (CWB) has two parts: the basic amount and the disability supplement.

If you are eligible for the Canada Workers Benefit (CWB), you can receive about 50% of the CWB payment you are entitled to as advance payments instead of waiting for the tax season.

The remaining payment can be claimed when you file your annual income tax returns. 

GST/HST Credit 

The Goods and Services Tax/Harmonized Sales Tax (GST/HST) is a tax-exempt quarterly credit payment from the federal government to eligible Canadian individuals and families with low or middle income. The tax credit is aimed at offsetting some of the sales taxes Canadians pay in GST and HST throughout the year. 

The amount of GST/HST credit you’re entitled to receive is majorly dependent on your residential province or territory and a slew of other factors. 

Eligibility Requirements for Canada Fed Deposit

The Canada Fed deposit is paid depending on your eligibility for any, some, or all of its component programs. 

Each program under the Canada Fed has its criteria for eligibility. However, there are some requirements common to each of these programs which must be met for eligibility purposes. These requirements include:

  • You must be a Canadian resident
  • You must file your income tax returns every year. 
  • You must own a Canadian bank account
  • You must be at the age of majority accepted in your province or territory. 

Nevertheless, each of these programs has its criteria which may differ for each program. 

Eligibility Requirements for Canada Child Benefit (CCB)

To be eligible to receive the CCB, you must meet the following requirements: 

  • You must be a Canadian citizen for tax purposes. 
  • You must have a child or children below the age of 18 living with you. 
  • You must be primarily responsible for the child’s or children’s upbringing. 

You, your spouse or common-law partner must: 

  • be a Canadian citizen or permanent resident in Canada. 
  • be a protected person.
  • be an indigenous person.
  • be a temporary resident who has lived in Canada for the past 18 months and has a valid permit obtained in the 19th month.

Eligibility Requirements for GST/HST Credit 

To qualify to receive the quarterly GST/HST credit, you need to meet the following criteria: 

  • You must be at least 19 years old.
  • You have (or had) a spouse or common-law partner. 
  • You are (or were) a parent and live (or lived) with your child or children. 

Eligibility Requirements for Canada Workers Benefit (CWB)

You are eligible to receive the Canada Workers Benefit (CWB) payments if you meet the following conditions: 

  • You must be employed or work to earn an income. 
  • You must be a Canadian resident for a whole year. 
  • You must be, as of December 31, at least 19 years old or within the time frame, living with your spouse, child, or your common-law partner. 

You are not eligible to receive the Canada Workers Benefit (CWB) payment if you: 

  • are a full-time student at any educational institution for more than 13 weeks in the year except you have an eligible dependent by December 31. 
  • were confined to a prison or correctional facility for at least 90 days during the year. 
  • are not a tax-paying Canadian citizen because you are an official or servant of another country like an ambassador, or you are a family member or employee of that person. 

For spouses or common-law partners, you must:

  • live together as of December 31. 
  • be a Canadian resident throughout the year. 

An eligible dependent is: 

  • your or your spouse’s or your common-law partner’s child. 
  • less than 19 years old and lives with you as of December 31. 
  • is not eligible for the Canada Workers Benefit (CWB).

To be eligible for the Disability Supplement you must:

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Canada Fed Deposit Payment Dates

Canada Fed deposits are paid to eligible individuals depending on the payment dates of the constituent programs for which the individual is qualified. Thus, if you are eligible for more than one benefit program under Canada Fed, you can expect to receive your payments on different dates. 

The Canada Child Benefit (CCB) is paid monthly while the GST/HST credit and Canada Workers Benefit (CWB) are paid quarterly.

Canada Child Benefit (CCB) Payment Dates

If you’re eligible for the Canada Child Benefit (CCB) payment you will receive your payment on the following dates:

  • August 19, 2022 
  • September 20, 2022 
  • October 20, 2022 
  • November 18, 2022 
  • December 13, 2022

GST/HST Payment Dates

If you’re eligible to receive the GST/HST credit, you can expect your payments on the following dates:

  • January 5, 2022 
  • April 5, 2022 
  • July 5, 2022 
  • October 5, 2022

Canada Workers Benefit Payment Dates 

Eligible beneficiaries of the Canada Workers Benefit (CWB) can expect to receive their payments on the following dates:

  • January 5, 2022 
  • April 5, 2022
  • July 5, 2022 
  • October 5, 2022

Canada Fed Deposit: How Much Will You Receive?

The amount of money you are entitled to receive in Canada Fed Deposit is dependent on the Canada Fed programs you are eligible for. 

Each of these programs has a maximum or minimum amount that can be paid to eligible persons, as well as thresholds, beyond which you may not receive any payments. 

Canada Child Benefit (CCB) Payment Amount

The amount you’re entitled to receive in CCB every month is based on several factors such as: 

  • The number of children living with you.
  • Whether or not you have a spouse or common-law partner.
  • The age of the child or children. 
  • The adjusted family net income you reported in the previous year’s tax return. 

The maximum Canada Child Benefit (CCB) amount you are eligible to receive is: 

  • $583.08 per month, amounting to $6,997 per year for each child under 6 years of age. 
  • $491.91 per month, amounting to $5,903 per year for each child aged 6 to 17 years. 

GST/HST Credit Payment Amount

The GST/HST credit quarterly amount payable to you is dependent on the following factors:

  • Your family net income 
  • If you are unmarried or single, the amount you will receive is the amount from line 23600 of your income tax return or the amount that it would be when you complete it. 
  • If you are married or have a common-law partner, your net incomes are combined to get your family’s net income.
  • The number of children who are 19 years old living with you that you have registered for and are qualified to receive the Canada Child Benefit (CCB) and the GST/HST credit. 

The maximum GST/HST credit amount that you may be eligible to receive for the 2021 base year from July 2022 to June 2023 is: 

  • $467 If you are single or unmarried. 
  • $612 if you have a spouse or common-law partner. 
  • An additional $161 for each child under the age of 19 living with you.

Canada Workers Benefit (CWB) Payment Amount

The amount you may be entitled to receive in Canada Workers Benefit (CWB) is dependent on the following factors: 

  • Your marital status.
  • Your earned working income.
  • Your residential province or territory.
  • Your adjusted family net income. 
  • Your eligibility for the disability tax credit DTC.
  • The number of eligible dependents you have. 

The Canada Workers Benefit (CWB) has two parts: the basic amount and the disability supplement. 

For the basic amount:

The maximum Canada Workers Benefit (CWB) amount payable is:

  • $1,395 if you’re single.

The amount gradually decreases when your net income exceeds $22,944. However, you will receive no payments if your net income is greater than $32,244. 

  • $2,403 if you’re married or have a family.

The amount is reduced gradually when your Adjusted Family Net Income (AFNI) becomes greater than $26,177. You will receive no payment if your AFNI exceeds $42,197.

For residents of Quebec, the maximum CWB amount received is different from the amount received by residents of other provinces and territories.

For the CWB Disability Supplement:

The maximum payable CWB disability supplements amount is:

  • $720 if you are single or unmarried. 

The amount is gradually reduced when your net income exceeds $32,244. You will also receive no payments if your net income is greater than $37,044. 

  • $720 if you are married or have a family.

The amount gradually reduces when your AFNI exceeds $42,197. However, if one spouse is eligible for the Disability Tax Credit (DTC) and your AFNI is greater than $51,797, you will not receive any payments. Also, if both you and your spouse are eligible for the DTC and your AFNI is greater than $51,797, you will not receive any payments. 

For residents of Quebec, the maximum CWB disability supplement amount varies. 

Is The Canada Fed Deposit Taxable?

The Canada Fed contains three benefits programs – the Canada Child Benefit (CCB), Canada Workers Benefit (CWB), and the GST/HST Credit. 

Out of these three programs, the CCB and GST/HST credit are non-taxable or tax-free income while the CWB is taxable or refundable income. That is, if you are eligible for the CWB, you will be required to pay taxes on the income you receive from the CRA.

Canada Fed: Direct Deposits 

Due to the high cost of mailing out checks to each eligible individual’s address, the federal government chooses to make these payments through direct deposits. 

Direct deposit is a fast, easy and secure way for the federal government to electronically transfer money directly into your bank account or the bank account you provided during your enrollment for any of the programs.

Most of these programs under the Canada Fed have the option of payments through direct deposit. So, enrolling for direct deposit on the CRA website will enable you to receive your payments as direct deposits. You can track your direct deposit payments via your CRA My Account.

How To Apply For Direct Deposit

You can sign up for direct deposit if you already receive payments from any of the Canada Fed programs. You can sign up in the following ways: 

  • Financial institution: 

You can sign up for direct deposit through any Canadian financial institution like banks, credit unions, and trust companies. 

  • On the CRA website: 

You can also sign up for a direct deposit to your CRA My Account on the CRA website. 

  • By phone: 

Sign up for direct deposit by calling the CRA at 1-800-959-8281. 

To sign up, you will need your: 

  • Social Insurance Number (SIN).
  • Full name.
  • Current address including postal code.
  • Date of birth.
  • Most recent income tax and benefit return as well as information on the most recent payments made to you by the CRA, if any. 
  • Banking information.
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Canada Fed: How To Confirm Your Payment

When you see a deposit payment filed under “Canada Fed”, the first thing you should do is to find out what the payment is meant for. There are situations where the federal government makes wrong deposits and even if it is not your fault, you may still get in trouble should you fail to inform them of the deposits. 

Your best and safest bet to confirm and ascertain the purpose of your Canada Fed payment is through your CRA My Account. The CRA My Account is an easy, secure, and convenient portal from the CRA that helps you quickly and easily manage your tax and benefits affairs online. 

Log in to your account to check for notifications or any mail correspondence from the CRA. You can go to the message section to check for any messages from the CRA concerning the Canada Fed deposits. 

However, if you have not gotten any messages, emails, or notifications regarding the deposits and you are not eligible to receive benefit payments from any of the Canada Fed programs, you should contact the CRA immediately. 

If the payment is from any of the benefit programs you are eligible for, you can spend the money in whatever way you want. 

Canada Fed Deposit: How To Put It To Use

After receiving your Canada Fed deposit, you can decide to spend the money however you see fit. One of the best ways to spend the money is to use it to fund a financial goal to acquire a certain level of financial security. 

One way to do so is to start saving up for your children’s college education using the RESP account. Amounts paid into the RESP account are increased up to a certain amount by the government. 

Another important way is to use the Canada Fed deposit payment to fund your emergency savings account. If you do not already have one, you can always open a savings account with any bank that offers high-interest rates and deposit your Canada Fed payments there so that the amount increases over time. Many banks offer high savings rates. Just choose one that suits your needs and use it to start saving your Canada Fed deposits. 

You can also use your Canada Fed deposit payments to invest in stocks and bonds. Open an investment account, either a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), or a non-registered personal account, and use low-cost ETFs to invest in a large number of stocks and bonds. 

You can also use it to fund your emergency accounts, pay your debts, and set up a life insurance premium account.

Child Disability Benefit (CDB)

The Child Disability Benefit (CDB) is a monthly non-taxable benefit paid to eligible families or individuals who care for children under the age of 18 with prolonged and severe impairments in physical and mental functions. 

The CDB is issued by the CRA to eligible families to help with the care and upbringing of children with disabilities. It is added to the Canada Child Benefit (CCB) payment and paid to eligible families.

To receive these payments, a medical practitioner needs to ascertain and certify that the child has a physical or mental disability that is prolonged and severe.

Eligibility Requirements for Canada Disability Benefit (CDB)

To be eligible to receive the CDB, you must meet the following criteria:

  • You must be qualified to receive the Canada Child Benefit (CCB). 
  • Your child or children must also be eligible for Disability Tax Credit (DTC). 

If your child is eligible for the DTC and you already receive Canada Child Benefit (CCB) for the child, you do not need to apply for the CDB. It will automatically be paid to you.

CDB Payment Amount 

The CDB amount you might be eligible to receive is dependent on the following factors: 

  • The number of eligible children in your care.
  • Your family net income.  
  • Your marital status. 

The maximum amount you may receive is $248.75 per month or $2,985 per year for each child who is eligible for the Disability Tax Credit (DTC).

The amount is going to be reduced when the family net income becomes greater than $71,060. 

Other Government Benefits

Aside from the Canada Fed, the Canadian government also makes deposits filed under other codes like the Canada Pro, Canada RIT, and the Canada FPT. All these codes or descriptions are used to issue payments to eligible beneficiaries of the benefits program administered through these codes. Here’s a brief description of what these codes mean: 

Canada RIT Deposit

This represents the Canada Refund Income Tax rebates. This deposit is issued by the CRA to eligible tax-paying Canadians on behalf of the federal government. 

The benefit amount you are entitled to receive depends on factors like your taxable income and how much has been paid to the CRA in taxes for the tax season. 

Usually, you may receive your Canada RIT payment between one to six weeks after filing your annual income tax return or if your tax return has to be reassessed, you may receive the payment at a later date.

Canada Pro Deposit  

Residents of Ontario and Alberta can apply to be eligible to receive this benefit. The Canada Pro deposit is a code description for payments from the Ontario Trillium Benefit (OTB) and the Alberta Child and Family Benefit (ACFB). These benefits are targeted at Ontarians and Albertans who are tax-paying low-income or middle-income earners. 

To receive the Ontario Trillium Benefit, you must be eligible for any of the following programs:

  • Ontario Energy and Property Tax Credit (OEPTC).
  • Ontario Sales Tax Credit (OSTC).
  • Northern Ontario Energy Credit (NOEC).

To receive the Alberta Child and Family Benefit (ACFB), you must have one or more children under eight years. Both programs are income-tested.

Canada FPT Deposit

This stands for Canada “Fed-Prov-Terr”. This deposit covers several provincial and territorial benefit programs which you can be eligible for. You can receive your Canada Fed deposit together with your Canada FPT deposit. 

The Canada FPT deposit is paid to individuals eligible for any the following programs:

  • Canada Child Benefit (CCB) 
  • Goods and Services Tax (GST)/Harmonized Sales Tax (HST)
  • Some provincial and territorial benefit programs like the British Columbia Climate Action Tax Credit (BCCATC), the Ontario Senior Homeowners’ Property Tax Grant, and other provincial/territorial credit programs depending on the residential province of the recipient.

Canada Fed Deposit Payment Dates FAQs

What Is The Canada Fed Deposit In My Bank Account?

The Canada Fed deposit in your bank account is a code under which direct deposits from the federal government are filed. It represents the payments deposited into your bank account by the CRA from any of the following programs: Canada Child Benefit (CCB), Canada Workers Benefit (CCB), and the GST/HST credit. You can be eligible to receive payment from one or all of the benefit programs.

Is Canada Fed Taxable?

Yes, the Canada Workers Benefit (CWB) portion of the Canada Fed is taxable. However, the other Canada Fed programs—the Canada Child Benefit (CCB) and the GST/HST Credit—are non-taxable (tax-free).

Nevertheless, to keep receiving the benefits, you will need to file your annual income tax returns yearly.

Why Did I Receive The Canada Fed Deposit? 

You received a Canada Fed deposit because you are eligible to receive payments from any of the following benefit programs: Canada Child Benefit (CCB), Canada Workers Benefit (CWB), and the GST/HST Credit.

However, if you are not eligible for any of the benefit payments you received, you should contact the CRA immediately to rectify the issue. You can contact the CRA at 1-800-959-8281.

In Summary

If you’re eligible for the Canada Child Benefit (CCB), GST/HST Credit, or Canada Workers Benefit (CWB), you may receive your payments as Canada Fed deposits in your bank account. The Canada Fed deposit is issued by the Canada Revenue Agency (CRA) on behalf of the federal government to eligible Canadians.

If you don’t qualify for any of these three programs but have still received a Canada Fed deposit, it’s a good idea to contact the CRA immediately.

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