The British Columbia Family Benefit is a financial aid program that provides a tax-free monthly payment to families with children under 18. This program, administered by the Canada Revenue Agency (CRA), attempts to reduce economic strains on families by augmenting their income and assisting with the costs associated with raising children. As part of the upgrades made in the 2024 budget, the B.C. Family Benefit will include a bonus payment of about $445 beginning in July 2024 and running until June 2025. This project is part of a larger effort to guarantee that more families receive adequate support to manage their daily expenses.

This incentive is intended to provide further assistance in the face of increased living costs caused by global inflation and high interest rates. Notably, over 340,000 homes throughout the province will benefit from this increase, with 66,000 families becoming eligible for the first time.

Who will receive the BC Family Benefit Bonus?

• Eligibility for the B.C. Family Benefit Bonus is primarily determined by a family’s participation in the B.C. Family Benefit during the bonus period of July 2024 to June 2025. Here are the main eligibility criteria:
• Filing Tax Returns: Families must file a T1 Income Tax and Benefit Return each year. This is important because the Canada Revenue Agency (CRA) utilizes this information to determine eligibility and calculate benefit amounts.
• Registration for Canada Child Benefit: Families with children enrolled for the Canada Child Benefit (CCB) are immediately considered for the B.C. Family Benefit, which includes the bonus. If your child is not already registered with the CCB, you must apply for it first.
• Residency: Residents of British Columbia are eligible for this benefit. If you relocate to British Columbia, your eligibility will be determined once you update your residency status with the CRA. Similarly, if you relocate out of British Columbia, you should notify the CRA so that your benefit status can be adjusted properly.
• Income Level: The amount of the bonus and the standard B.C. Family Benefit changes according on the family’s adjusted net income. To receive the maximum benefit, your family’s income for the 2023 tax year must be less than a particular threshold, with the benefit gradually decreasing as income rises, eventually ceasing entirely at higher levels.
• New recipients: Approximately 66,000 families who have not previously earned the B.C. Family Benefit will automatically receive the bonus this year when they file their income taxes, providing an additional incentive for eligible families to keep their tax filings current.
• Families who fulfill these criteria are eligible for the B.C. Family Benefit Bonus helps minimize the financial burdens caused by the current economic climate.

Bonus Payments:

In response to increased living expenses, each qualifying family receives an additional bonus of around $445 on average. This bonus is paid out monthly from July 2024 to June 2025. This bonus provides additional assistance during economic hardship, particularly inflation, to help families manage expenses such as food and children’s clothing.

Average bonus amounts:

• The benefits for families earning more than $114,887 drop gradually. The exact reduction rate is 4% of the adjusted family net income excess over $114,887 until the benefit amount is zero.
• These benefits are intended to give financial help, particularly to low- and middle-income families.
• The annual sums represent the maximum amount that can be received per child over a year.
• Low-Income Single Parent Supplement: Low-income single parents are eligible for an additional $500 annually. This supplement is intended to assist additional single-parent households facing unique financial constraints.