Do you know the meaning behind the Canada Fed deposit that appears on your bank statement? If you see “Canada Fed Deposit” on your bank account, that is a payment summoned from the Government of Canada, and there is nothing to worry about. We are here to clear your doubts about this mysterious payment called Canada Fed deposit for the year 2022.
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What Does Canada Fed Deposit Mean?
This is a kind of direct deposit that is fulfilled by the Canada Revenue Agency (CRA).
It says that you are eligible for one or a mix of the following benefits.
- GST/HST
- Canada workers benefit
- Canada child benefit (CCB)
- Child disability benefit (CDB)
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The Date for Canada Fed payment in 2022
The Fed payment dates in Canada are occurring as the following:
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GST/HST Credit
Also known as the Goods and Services Tax or the Harmonized Sales Tax, this is a benefit that is paid quarterly to low and modest income slab people and families.
It helps to offset any sales tax that they incurred during the year.
The payment dates for these are:
- Jan 5, 2022
- April 5, 2022
- July 5, 2022
- October 5, 2022
For single people, the payable amount is $456, for married, it is $598, and for children under 19, it is $157.
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The rate of GST and HST are as follow.
GST Rate: 5%
HST Rate
Ontario, Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland and Labrador have GST included in the provincial sales tax regime. It forms HST. The rates of HST which also includes GST in these provinces are as below.
- Ontario: 13 percent
- Prince Edward Island: 15 percent
- New Brunswick: 15 percent
- Nova Scotia: 15 percent
- Newfoundland and Labrador: 15 percent
Read: Ontario Trillium Payment Dates And Benefits Explained (2022)
Canada Workers Benefit
CWB or Canada Workers Benefit can be refunded and is a tax credit that supports families and other people who are earning low.
The payment dates for CWB are the same as the ones for GST/HST dates.
- April 5, 2022
- Jan 5, 2022
- July 5, 2022
- October 5, 2022
The payable amount on CWB for singles is $1,381 yearly and $2,379 for families. This amount is also dependent on the amount of net income you have. Eligible people can get up to $713 for the same.
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CCB or Canada Child Benefit
This tax-free payment is made to support families in raising their children.
The dates for CCB are:
- Jan 20, 2022
- Feb 18, 2022
- March 18, 2022
- April 20, 2022
- May 20, 2022
- June 20, 2022
- July 20, 2022
- August 19, 2022
- September 20, 2022
- October 20, 2022
- November 18, 2022
- December 13, 2022
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What Amount of CCB Are You Eligible For?
For children under the age of 6, the CCB amount is $6,833 yearly or $569.1 monthly.
Kids of age 6 to 17 are eligible for $5,765 each year or $480.41 monthly.
The amount you receive is dependent on the number of kids that you have, and the adjusted net family income that comes to your house.
The Federal government also launched more benefits for supporting children through the Canada Child Young Children Supplement (CCBYCS) in 2021. This pays over $1,200 for each child under 6 years of age, and the final payment was on 29th October 2021.
Read: Do You Know How Is CPP Calculated?
Canada Child Disability Benefit
Families with children stricken with a disability under 18 years are eligible for this benefit.
This provides a maximum benefit of $2,915 yearly and $242,91 monthly. You can get this benefit on the following dates.
- Jan 20, 2022
- Feb 18, 2022
- March 18, 2022
- April 20, 2022
- May 20, 2022
- June 20, 2022
- July 20, 2022
- August 19, 2022
- September 20, 2022
- October 20, 2022
- November 18, 2022
- December 13, 2022
Read: Tax For Self-Employed In Canada: How Much To Set Aside For CPP & EI?
Eligibility for Canada Fed Deposit
Here are the conditions that you need to meet if you want to qualify for the Fed payments.
For CCB:
- Be in the income slab.
- You should be legally residing in Canada and fulfilling tax requirements.
- Should be a child’s guardian.
- Should be living with a child under the age of 18.
For CDB:
You should meet all the aforementioned criteria, and your child should also be clear about the disability tax benefit.
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The eligibility criteria are:
- You should be a tax-paying Canadian resident.
- You must be a parent living with a child.
- The age should be over 19.
- Should have a spouse or common-law partner.
For the CWB benefit, you should be over the age of 9, have an income, and should be a resident of Canada for income tax reasons.
Are Taxes Imposed on the Canada Fed?
These payments are non-taxable. You have to remember to file your annual tax to get this benefit, regardless of whether you have received the taxable income or not.
Almost 50% of the CWB payments are done to the rightful people before the date. You can claim this reminder on your income tax return.
How to Utilize the Canada Fed deposit?
You can maximize your benefits by dedicating all of this payment to the RESP account of your child.
You can match these contributions with the government of Canada for up to $500 yearly, and $7,200 is also given as grant money. If you lack an emergency fund, you can deposit this into a HISA. Some of the most renowned accounts in Canada are EQ Bank Savings Plus Accounts.
This account brings zero fees on debits or Interac e-transfers and zero monthly fees. You also get an interest rate of 1.25%. You can also invest your Fed payment in non-registered or registered accounts.
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Frequently Asked Questions About Canada Fed Deposit
Q. How do you know if you qualify for the Canada Fed Deposit payment?
Ans. You should look at your CRA account to check if you qualify for any benefit. You can also get in touch with CRA by calling at +1-800-387-1193.
Q. What is the reason behind getting a Canada Fed Deposit?
Ans. This direct deposit benefit by Canada’s government is connected to GST/HST credit, Canada Child Benefit, or Canada Workers Benefit.
Read: How to Open A CRA Account? (Updated 2022)
Conclusion
When you get so many privileges from the Canadian government, it is not just beneficial for you to avail them but also your responsibility to keep yourself updated with it. The best way to do so is to read news, follow government websites or personal finances websites updating such information at a regular interval. It would provide you with all the details and you will never miss a payment date. I hope this article helped you understand Canada Fed Deposit. Let us know in the comments.
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