We are Canadian and both our kids are so Canadian. We plan to move backhome to stay with our parents for a couple years or more because they need us to take care of. We have a house to rent out and will file tax every year of that income. Can our kids still receive Child benefit til we are back to Canada?
Child benefit while living outside Canada
- Thread starter Pita123
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Will you have other sources in income while away from Canada, or the house rent only?
The rent only. And we also want to rely on the child benefit portion to pay forward to my kids expense while leaving outside Canada ( their childcare, school..ect)
I asked because one precondition is filing and paying taxes in Canada.
Not sure I know the final answer, but I must say I would doubt that Canada would pay for kids who are essentially non-resident. For one thing, I think it is structured to help pay the costs of kids growing up in Canada. I have lived in countries where the amount payable for one child is more money than the average worker in those countries earn.
As well, if you can depart for a couple of years and collect, then why not stay abroad and collect until the kids are adults? I doubt that's what the program intended.
I understand. Its dilema for us, we only have the rental income in Canada so is it counted as paying tax in Canada.? I will call CRA but i want to ask if there is anyone here have the same experience. I mean I thought child benefit is for Canadian whose our family are. Thank you anyway for your answer
Having rental income in Canada is not counted as paying taxes.
To pay taxes, you would need to be filing a CRA return annually which declares your worldwide income (this means the income you are making on your rental in Canada plus any employment or other income you are making outside of Canada). You would then need to pay taxes on your worldwide income to CRA.
That's an interesting bit of info. I would have thought that the rent must be reported a tax paid on it and I would, until now, have thought that constituted paying taxes. I also thought that it would open the door to having to report and pay tax on worldwide income. If the rent is the total of the worldwide income, I would not have thought in that case that tax was not being paid on worldwide income. Here, the OP says there is no other "worldwide income". Rent from Canada is the only income. But, even having worldwide income (since rent won't count) still might not make one a resident for tax purposes, which is required to collect CCB, as set out here:
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-before-you-apply.html
The OP might have a problem with showing the requisite "residential ties":
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html
Another issue that occurs to me is, to the qualify for CCB, one must be a "resident of Canada for tax purposes". I would think one can be that and have no income whatsoever. In that regard, I think I stated the matter incorrectly when I said "one precondition is filing and paying taxes in Canada."
I would expect that to leave the focus on "residential ties". But, only some musings on my part.
I am not sure if @scylla's opinion, is that no, the OP cannot collect CCB for the kids. She has really only addressed what it means to pay taxes. But that's probably not the end of the matter. I kinda' hazy to me, just like my faltering clarity of expression in this post. At the same time, I remain of the view that CCB was not meant to be extended in cases such as that being posited.
I personally do not think the OP can collect CCTB in this scenario. If they try, I think it will be paid but then at some point CRA will do a claw back. Don't mess around withe CRA and CRA rules. My two cents.
But still one submit a non resident income tax return to CRA to report the rental income and counted as paying taxes.
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/rental-income-non-resident-tax.html
Seriously?
On that premise . One could never return back too Canada have the ccb paid out to children that have set foot back into Canada for years
And that would be why I said, upthread: "As well, if you can depart for a couple of years and collect, then why not stay abroad and collect until the kids are adults? I doubt that's what the program intended."