Life event: tax changes when you're expecting

Congratulations! If you’re expecting a bundle of joy in the next few months, it’s important to consider how your tax situation is about to change. Here is some important information every new parent should know.

Automated Benefits Application (ABA)

When you register the birth of your new child, the mother can also consent to use the Automated Benefits Application as long as you live in a participating province*. This automatically signs your child up for the GST/HST credit, and allows you to apply for the child tax benefits you’re entitled to receive like the:

*Participating provinces include:

  • Alberta
  • British Columbia
  • Manitoba
  • New Brunswick
  • Newfoundland and Labrador
  • Nova Scotia
  • Ontario
  • Prince Edward Island
  • Québec
  • Saskatchewan

Note: The Yukon, Northwest Territories, and Nunavut will all be offering this service in the near future.

If you don’t live in one of the participating provinces listed above, you can apply for the Canada child and family benefits by using the Apply for child benefits service through My Account (registration required). You can also complete and mail in Form RC66: Canada Child Benefits Application to your tax centre.

Canada Child Benefit

The CCB is a tax-free monthly payment that’s made by the government to eligible families, to help with the cost of raising children up to the age of 18.

Provincial and territorial programs

Most provinces and territories have child and family benefit and credit programs that combine with the CCB and the GST/HST credit.

GST/HST credit

Low income families can benefit from this tax-free quarterly payment designed to offset some of the GST or HST they’ve paid throughout the year.

Working income tax benefit (WITB)

This refundable tax credit provides tax relief to low income, working families. With a new eligible dependant on the way, the amount you receive for the WITB might increase.

Disability amount

If you or your dependant suffer from a prolonged physical or mental impairment, you or your dependant might be eligible to receive the disability tax credit. To see if you or your dependant are eligible, complete form T2201: Disability Tax Credit Certificate and have it reviewed and certified by a medical doctor.

Child disability benefit (CDB)

The CDB is a tax-free benefit available to families who care for a child under the age of 18 who is eligible for the disability tax credit.

Registered education savings plan (RESP)

Opening an RESP for your child is a great way to save for their future. An RESP allows you to make contributions toward your child’s future education. You can also take advantage of programs like Canadian education savings grant and the Canada learning bond.