Canadian Taxes: CCB and FIRE

[KT Beans]

Let's say a MMMer were RE, living in Canada, and earning $30,000 in taxable income off of a $1,000,000 nest egg (numbers chosen for simplicity).  So if these retirees had two children between the ages of 6 and 17 years old, would they still be eligible for the CCB (Canada Child Benefit) of $900/mo, tax free?  Even though they have a million dollars in the bank (keeping in mind this money has either already been taxed or is tax sheltered in an RRSP or TFSA)?

I'm trying to get my husband on board with FIRE, and one of his arguments is "we have to save for university!"  We already have a sizeable sum of money as we've invested $100 every month for each child since they were born.  But a $900/mo infusion would not only allow for adequate RESP contributions, they could also top up our own income post retirement.

I want to make sure this is a legitimate, tax free way to earn money as an early retiree. 

[FireDice]

I'm pretty sure the CCB is income tested, not wealth tested, so you can assume you'll be eligible for some assistance.

http://www.budget.gc.ca/2016/tool-outil/ccb-ace-en.html

[Fireinthebelly]

It's even better than 900$ per month when you take into account GST credits, provincial credits, etc. 

Try this calculator:
http://www.cra-arc.gc.ca/bnfts/clcltr/cfbc-eng.html

For example , For 2 income earners in Ontario  with $15k taxable income each and 2 children (one under 6 one over 6) there is over $16k in annual benefits. 

[Goldielocks]

Let's say a MMMer were RE, living in Canada, and earning $30,000 in taxable income off of a $1,000,000 nest egg (numbers chosen for simplicity).  So if these retirees had two children between the ages of 6 and 17 years old, would they still be eligible for the CCB (Canada Child Benefit) of $900/mo, tax free?  Even though they have a million dollars in the bank (keeping in mind this money has either already been taxed or is tax sheltered in an RRSP or TFSA)?

I'm trying to get my husband on board with FIRE, and one of his arguments is "we have to save for university!"  We already have a sizeable sum of money as we've invested $100 every month for each child since they were born.  But a $900/mo infusion would not only allow for adequate RESP contributions, they could also top up our own income post retirement.

I want to make sure this is a legitimate, tax free way to earn money as an early retiree.

The rules changed with the liberals updating UCB and just going with extended CCB.   Before you just needed a kid in the right ages, unlimitd income, but UCB was income taxed back at your marginal rate.

I think CCB just looks at taxable income (or net income) as well..   just like the OAS clawback.   As so few are in your position, I doubt it makes much sense to change the rules.

Total assets only come into play with the National Child Benefit Supplement (CCTB*) which uses  provincial support payment assistance (welfare being received, typically) as a pre-qualifier.

Also don't forget education savings bonuses -->  CESG -- you get 40% match up to $600  on your kid's RESP at lower <$37k income, instead of the normal 20%!

If you do get CCTB*, you get free Canada Learning Bond of $500 plus $100 per year , per child, that does not require a match from you.

[lostamonkey]

It's even better than 900$ per month when you take into account GST credits, provincial credits, etc. 

Try this calculator:
http://www.cra-arc.gc.ca/bnfts/clcltr/cfbc-eng.html

For example , For 2 income earners in Ontario  with $15k taxable income each and 2 children (one under 6 one over 6) there is over $16k in annual benefits.

This.

There are huge benefits to being "income poor" in Canada.