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Apply for the Canada Child Benefit once the birth is registered, and file your return every year, because the payment depends on it. EI maternity and parental benefits are taxable income.
A new baby changes your budget first and your taxes second, but the second change can put real money back in your pocket if you set it up early.
What should you do first?
Apply for the Canada Child Benefit as soon as the birth is registered. It’s a monthly payment, and how much you get depends on your family income and the number and ages of your children. You can estimate it with the child benefit calculator.
How is leave pay treated?
Maternity and parental payments from Employment Insurance are taxable income, and some tax may be taken off at the source. Your slip arrives the following February. The maternity and parental leave calculator shows what you might receive, and the EI calculator covers the rest.
What else can lower your tax?
Childcare costs are often deductible, and the credits you can claim change once you have a child. Take a look at the tax credits calculator for the common ones.
File on time every year.
The benefit is recalculated from your return, so a late or missing return, yours or your partner’s, can hold up your payments. Is one of you earning nothing? That return still needs filing. See benefits and credits for more.
Before you act on this page
You’re reading a general overview, and it can’t see your slips, your province or your family, so you shouldn’t treat it as advice for your own return. If anything here doesn’t match a letter from the CRA, the letter wins.
Stuck?
Ask a qualified preparer or the CRA itself, and keep the document checklist, the tax calendar and the filing guide close by. Not sure which province’s rules apply to you? The province index lists them all.
Frequently asked questions
Do I need to file a tax return to get the Canada Child Benefit?
Yes. You and your spouse or common-law partner both need to file, even with no income.
Is maternity or parental leave pay taxable?
Employment Insurance maternity and parental benefits are taxable income, and you report them on your return.
Can I deduct childcare costs?
Often yes. They can be deducted by the lower-income spouse in many cases, with limits and receipt rules.
Does the benefit depend on my income?
Yes. It's based on your family net income and the number and age of your children, and it's recalculated each year after you file.
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.