The Canada Child Benefit (CCB) is a tax-free monthly payment provided to eligible families to assist with the cost of raising children under 18.
Administered by the Canada Revenue Agency (CRA), the amount you receive is based on your Adjusted Family Net Income (AFNI), the number of children, and their ages.
Understanding the CCB’s recalculation process and updating your income correctly can make a significant difference in your benefit amount for 2025.
Why Updating Your Income Matters in 2025
With living expenses on the rise, ensuring your income details are accurate is crucial. The CRA recalculates CCB payments annually in July, based on the previous year’s income. Payments from July 2025 to June 2026 will use your 2024 income.
If your earnings have significantly decreased—because of job loss, reduced hours, or a major financial shift—you could qualify for a higher CCB payment. However, you must inform the CRA in time to take advantage of the increase.
When and How the CRA Recalculates CCB
- Recalculation Period: Every July
- Based on: Previous year’s income (for 2025-2026 payments, the 2024 tax return)
- Key Point: Any income changes not reflected in your 2024 return can affect your benefit if not reported.
Taking proactive steps ensures you are paid correctly and helps avoid overpayments or underpayments.
Step-by-Step: How to Update Your Income for a Higher CCB in 2025
Step 1: File Your 2024 Taxes on Time
Filing your 2024 tax return by April 30, 2025, is essential. Even if you earned no income, filing is mandatory to maintain CCB eligibility.
Step 2: Log into the CRA My Account Portal
Use the CRA My Account to:
- Update your income and marital status.
- Navigate to “Benefits and Credits” → “Update your marital status or income.”
- Make sure all information reflects your latest financial situation.
Step 3: Request an Income Adjustment (Optional)
If your actual 2024 income is much lower than your filed income suggests, request an income adjustment:
- Call CRA at 1-800-387-1193.
- Submit a written request with proof like:
- Recent pay stubs,
- Record of Employment (ROE),
- Employer letters confirming reduced hours or layoffs.
Step 4: Monitor Your CCB Notice in July 2025
In July 2025, you will receive a new CCB Notice:
- Review the payment amount carefully.
- If discrepancies are found, contact the CRA promptly.
Step 5: Update Income Mid-Year if Needed
If a major income change occurs mid-year, you can inform CRA and request a reassessment. This ensures that your benefit amount is adjusted as needed and avoids surprises.
Key Steps to Maximize Your CCB in 2025
| Step | Action | Timing | Notes |
|---|---|---|---|
| 1 | File 2024 taxes | By April 30, 2025 | Mandatory for CCB eligibility |
| 2 | Update income via CRA My Account | May 2025 | Reflect current financial situation |
| 3 | Request income adjustment | May-June 2025 | Include valid proof of changes |
| 4 | Review CCB Notice | July 2025 | Confirm new benefit amount |
| 5 | Notify CRA of mid-year changes | Ongoing | Update CRA if major income changes |
Additional Tips for Maximizing Your 2025 CCB
- Keep documents ready: Always retain income records for at least six years.
- Update marital status immediately: It directly impacts your Adjusted Family Net Income (AFNI).
- Check for provincial benefits: Some provinces offer extra payments linked to your CRA income data.
- Avoid overpayments: If your reported income is outdated, CRA could overpay and later reclaim amounts.
Updating your income correctly for a higher CCB in 2025 ensures you receive the maximum benefit you are entitled to.
Filing taxes on time, using the CRA My Account portal, and keeping income documentation up-to-date are essential.
As costs continue to rise, taking these proactive steps could provide much-needed financial support for your family throughout the year.
FAQs
What happens if I do not update my income with CRA in 2025?
If you do not update your income, your CCB payments could be lower or you might receive overpayments that you must repay later.
Can I request a reassessment of my CCB mid-year in 2025?
Yes, if you experience a significant income drop, you can request a reassessment even after July 2025.
Is it mandatory to use the CRA My Account portal for updates?
While not mandatory, using the CRA My Account is the quickest and most efficient way to update your details and avoid delays.