$284 per Month Child Disability Benefit 2025 – Who Qualifies & How to Apply

$284 Monthly Child Disability Benefit 2025 – Eligibility, Application and Payments

Introduction

In 2025, Canada is offering increased support to families caring for children with disabilities through the Child Disability Benefit (CDB). For the benefit year running July 2025 to June 2026, eligible families may receive up to $284.25 per month or $3,411 annually for each child who qualifies.

This benefit is designed to help with the extra costs of care, therapy, equipment, assistance, and other supports that families may need. In this article, we’ll explain:

1. What the Child Disability Benefit (CDB) is
2. Who is eligible
3. How much you can receive and how it is reduced by income
4. Payment schedule and timelines
5. How to apply or get the benefit
6. What families should watch out for, and tips for optimizing support

What Is the Child Disability Benefit (CDB)?

The Child Disability Benefit is a federal, tax‑free monthly payment delivered by the Canada Revenue Agency (CRA) to families who receive the Canada Child Benefit (CCB) and have children under 18 eligible for the Disability Tax Credit (DTC).

• It is added on top of the regular Canada Child Benefit.
• You do not need to apply separately for the CDB if your child already qualifies for DTC and you’re receiving CCB — it is automatically calculated.
• However, if the DTC certificate is approved later, the CRA may issue retroactive payments for up to two years, but not before eligibility begins.

The CDB helps offset the additional financial burden that families of children with disabilities often face, offering some stability and support.

Eligibility Requirements for 2025

To qualify for the CDB in 2025, both your family and the child must meet specific conditions.

Child Requirements

• The child must be under 18 years old during the benefit year.
• The child must be approved for the Disability Tax Credit (DTC) — a medical practitioner must certify the impairment as severe and prolonged.
• The DTC must be approved by the CRA.

Family / Parent / Guardian Requirements

• You must be eligible for the Canada Child Benefit (CCB), meaning you must meet residency, tax filing, and caregiving requirements.
• You must file your income tax returns each year (and your spouse or common‑law partner, if applicable), since CDB is calculated based on Adjusted Family Net Income (AFNI).
• You must be a resident of Canada for income tax purposes.
• Acceptable residency status includes Canadian citizen, permanent resident, protected person, or a temporary resident who has lived in Canada for at least 18 months (with some conditions).

Other Notes & Restrictions

• If the child’s disability status changes (such as following a medical re-evaluation), it may affect ongoing eligibility.
• If an eligible child turns 18 during the benefit year, payments may cease unless other rules apply.

In short: you need both CCB eligibility and DTC approval to receive the CDB.

How Much You Can Receive (2025 Amounts)

The maximum benefit is $3,411 per eligible child for the benefit year July 2025 to June 2026, which works out to $284.25 per month.

How Income Affects the Benefit

The CDB is income-tested. It begins to be reduced when the Adjusted Family Net Income (AFNI) exceeds $81,222.

• For one eligible child, the reduction rate is 3.2% of the income above $81,222.
• For two or more eligible children, the reduction rate is 5.7% above that threshold.

This means higher-income families may receive a reduced amount, or in some cases, no benefit if income is too high. But many middle- and lower-income families will still receive full or substantial benefit.

Example

If a family’s AFNI is $90,000 with one eligible child:

• Excess income = $90,000 – $81,222 = $8,778
• Reduction = $8,778 × 3.2% = $280.90
• Base maximum = $3,411
• Adjusted benefit ≈ $3,411 − $280.90 = $3,130.10 for the year, or approx. $260.84/month

Thus the actual monthly figure depends on income, number of eligible children, and deductions.

Payment Schedule & Timing

Benefit Year & Basis

• The benefit year spans July of one year through June of the next. For instance, July 2025 to June 2026 is one benefit year.
• The CDB payments for that year are calculated using the previous year’s tax return, i.e., 2024 income for the 2025–26 benefit year.

Payment Dates & Method

• CDB payments are made monthly and usually alongside the Canada Child Benefit (CCB) payments.
• The first payment of a new benefit year typically occurs in July.
• Payments are typically made via direct deposit or mailed for those not enrolled in direct deposit.
• The CRA may also issue retroactive payments for up to two previous years of eligibility once DTC is approved.

Confirmed Dates (Tentative for 2025)

• July 17, 2025
• August 21, 2025
• September 18, 2025
• October 16, 2025
• November 20, 2025
• December 18, 2025

These dates follow the typical pattern of mid-month or third-Thursday deposits.

How to Apply & What Steps to Take

If Already Receiving CCB and DTC

• If your child already has Disability Tax Credit (DTC) status and you receive Canada Child Benefit (CCB), then the CDB should be automatically added — no further application needed.
• The CRA will automatically adjust and include the CDB in your monthly benefit.

If DTC Not Yet Approved or You Are New

If your child is not yet approved for DTC or you are not yet receiving CCB, follow these steps:

1. Obtain and complete Form T2201 (Disability Tax Credit Certificate)
   • Part A: caregiver or parent information
   • Part B: completed by a medical practitioner
   • Submit the form to the CRA online or by mail.
2. File your income tax return
   • Both you and your spouse/common-law partner (if applicable) must file returns to ensure benefit eligibility.
3. Wait for DTC approval
   • Once approved, the CRA will recalculate your Canada Child Benefit and determine CDB eligibility.
4. Start receiving CDB payments
   • Payments will begin after CRA approves both CCB and DTC eligibility. You may also receive retroactive payments for up to two years.

Online or mail submission options are available, depending on your CRA account and region.

Important Tips

• Submit your DTC application early to avoid delays.
• Ensure your child’s medical documentation clearly meets the “severe and prolonged” criteria.
• File tax returns on time every year — even if you have no income.
• Monitor your CRA My Account for updates and payment details.

Things to Watch Out For & Common Issues

Income Reductions / Phase-Outs

• If your AFNI exceeds $81,222, your benefit is reduced by 3.2% (for one child) or 5.7% (for multiple children) of the amount over the threshold.
• Higher-income families may receive less or no benefit.

Delays & Processing Times

• DTC approval can take time depending on medical forms and CRA processing.
• Even after approval, CRA may take time to update records and issue payments.
• Retroactive payments may not cover all months if eligibility started later.

Eligibility Loss or Changes

• If a child loses DTC status after reassessment, payments may stop.
• If your family income rises significantly, benefits may be reduced.
• You must maintain eligibility for the CCB and file taxes every year.

Provincial Clawbacks or Benefit Interactions

• Some provinces, like Ontario, do not claw back the CDB from provincial disability supports.
• Other regions, such as Alberta, may treat CDB as income and reduce provincial aid accordingly.

Always verify with your provincial agency how CDB interacts with your local benefits.

Why the $284 Monthly Benefit Matters

• It provides predictable monthly support to families with children with disabilities.
• It helps cover expenses like therapy, mobility aids, caregiving, and more.
• It supplements the Canada Child Benefit and does not replace it.
• It can reduce financial stress and improve the overall quality of life for affected families.

While $284/month may not cover all extra costs, it offers essential help to many low- and middle-income families.

Summary & Key Takeaways

• The Child Disability Benefit offers up to $284.25/month or $3,411/year for each child under 18 who qualifies.
• To be eligible, a child must be approved for the Disability Tax Credit and the family must qualify for the Canada Child Benefit.
• The benefit is income-tested, and reductions begin when family income exceeds $81,222.
• Payments begin in July and are deposited monthly, often alongside CCB payments.
• If your child is not yet approved for the DTC, you must apply and get certified to receive the CDB.
• Retroactive payments are available for up to two years, and no separate application for CDB is needed once DTC and CCB are in place.
• Provincial interactions may affect other benefits — check with local authorities.

This benefit helps reduce the financial burden on families caring for children with disabilities, offering stability and improved access to support services.

FAQs