DEFINITION:
Child Disability Benefit (CDB) Retroactive: In Canada, the Child Disability Benefit (CDB) is a tax-free monthly payment made to families who care for a child with a severe and prolonged impairment. Retroactive CDB refers to the payment of CDB for past periods, specifically for the time during which the child was eligible but the benefit was not received.
FAQs:
1. How does the retroactive Child Disability Benefit work?
The retroactive Child Disability Benefit is paid for periods in the past during which the child was eligible but the benefit was not received. It allows families to claim a lump sum payment for the missed monthly payments.
2. Who is eligible for retroactive Child Disability Benefit in Canada?
Families with a child who has a severe and prolonged impairment and meets the eligibility criteria for the Child Disability Benefit (CDB) can apply for retroactive payment if they were previously unaware of the program or did not apply on time.
3. What is considered a severe and prolonged impairment?
A severe and prolonged impairment refers to a physical or mental condition that significantly limits a child’s ability to perform daily activities when compared to children of the same age. The impairment must be expected to last for a continuous period of at least one year.
4. Is retroactive Child Disability Benefit taxable?
No, the retroactive Child Disability Benefit is a tax-free payment. Additionally, the regular monthly CDB payments are also tax-free.
5. How far back can retroactive Child Disability Benefit payments be claimed?
Retroactive Child Disability Benefit payments can be claimed for a period of up to 11 years, depending on when the child became eligible for the benefit.
6. How can I apply for retroactive Child Disability Benefit in Canada?
To apply for retroactive Child Disability Benefit, you need to complete and submit the “Form T2201 – Disability Tax Credit Certificate” to the Canada Revenue Agency (CRA). The form must include a request for retroactive payments.
7. Will applying for retroactive Child Disability Benefit affect future eligibility?
Applying for retroactive Child Disability Benefit does not affect future eligibility for the regular monthly CDB payments. They are separate considerations, and being eligible for retroactive payments does not guarantee eligibility for future benefits.