Single-parent homes are one of the fastest-growing demographics in Canada.
In Canada, the number of single-parent families has increased by 160,000 homes, from 1.62 million in 2015 to 1.78 million in 2020. As per the 2016 census, 19.2% of children aged 0-14 in Canada live with a lone parent.
Parenting isn’t easy. But financial stress is one of the most pressing concerns cited by single moms and dads.
Fortunately, there are a number of single parent tax benefits in Canada to provide financial assistance for single moms and dads.
Many single parents may not be aware of the support from the government available to them. However, the Federal Government does have a handy benefits calculator to determine what kind of benefits, credits or programs you qualify for.
Single parent benefits include:
Canadian Child Benefit (CCB)
The Canadian Child Benefit (CCB) is available to parents of one or more children under 18. It provides a tax-free cash benefit based on income, number of children, ages, and marital status.
Canadian Education Savings Grant (CESG) for Registered Education Savings Plan (RESP)
Worried about how you’ll pay for your child’s higher education? Start saving now and get added contributions from the government.
Registered Education Savings Plans (RESP) allows parents and relatives to contribute money towards a child’s future educational needs, up to a total of $50,000 per child. The income generated on the savings is tax-free.
In addition, The Canadian Education Savings Grant offers either a 10% or 20% match to money you contribute up to $500 per child per year.
Canada Learning Bond (CLB)
Low-income families can still benefit from government support for RESPs, even if they don’t make any investments themselves.
The Canada Learning Bond deposits $500 into your child’s RESP, without any contribution requirements.
Each year after that, it provides an additional $100 deposit, up to age 15.
Family Supplement to Employment Insurance (EI)
If you lose your job through no fault of your own, EI can provide supplemental income until you find your next role.
If you qualify for EI and your net income is below a certain amount for the year, you can also be eligible for additional EI amounts through the Family Supplement. The Family Supplement can increase the amount of your EI payments by as much as 80%.
Want to learn more about the types of financial assistance available to single parents? iCASH offers great financial education resources online.
To learn more, visit icash.ca/learn.