Got a Child? You Could Get Another $200 From the CRA

The CCB enhancements for the 2020-21 benefit year came in the nick of time. Parents in Ontario will receive one-time additional support this Christmas. Investors can match the CCB with dividend earnings from Superior Plus stock.

| More on:

Canadian families will have more money in their pockets with the increase in the Canada Child Benefit’s (CCB) for the 2020-21 benefit year, effective July this year. The enhancement follows the one-time additional $300 per child paid to qualified CCB recipients on top of their regular May payments.

For parents in Ontario, the provincial government will provide a one-time payment of $200 per child (12 and younger) this Christmas. Parents of children (age 0 to 21) with special needs are receiving $250 per child. The total budget is $380 million for the province’s second round of relief.

Measure of relief

Ontario’s finance minister Rod Phillips said the first batch of payments paid out to parents was money well spent. However, rising expenses to support kids’ education prompted the provincial government to table a second round in the new budget. Applications for the latest program commences on November 23, 2020. You can submit an application until January 15, 2021.

Over the next three years, Ontario will give out another $70.3 billion for the Special Services at Home program. The money is support for parents with children who have physical or developmental disabilities, including autism. For the 2020-21 year, 4,700 children will benefit and 2,100 yearly in two years.

CCB update 2020

The Canada Revenue Agency (CRA) reminds Canadians eligible for CCB to file their 2019 tax returns. CCB payments for the 2019-2020 benefit were extended until September 2020, because the CRA can’t assess the benefits yet.

If you received CCB payments from July to September but did not file your 2019 income tax return, you must return the money. To reinstate the benefit payments, file your 2019 income tax return, so the CRA can assess and compute the amount due to you. Non-filing means future interruption to your CCB benefits.

Match the CCB top-up

Canadians with extra funds can match the $300 one-time CCB top-up and make it a recurring income stream through dividend investing. COVID-19 impacted Superior Plus’s (TSX:SPB) production and distribution of propane and distillates as well as specialty chemicals in 2020. However, the dividend stock remains a solid choice for income investors.

The propane stock pays a lucrative 6.32% dividend and trades at less than $12 per share. Since the payouts are monthly, a $57,100 position would be enough to produce $300.73 in monthly income. Keep reinvesting the dividends, and your capital will compound to $105,386.70 in 10 years.

Superior Plus is the second-largest producer of sodium chlorate in North America and globally. It operates eight product facilities in the region and one in Chile. The energy distribution (75%) and specialty chemicals (25%) business segments are the revenue generators.

The business is enduring since heating oil and propane gas are essentials, especially in the cold winter. Propane consumption is increasing in the fourth quarter of 2020 as full-service restaurants acquire patio heaters to extend outdoor dining seasons. Schools and other vendors also need propane to power their outdoor operations.

Canadian parents not left behind

Parents in Canada beset by financial strain due to the pandemic are not left behind. The CCB enhancements are very timely, and the additional support for those in Ontario is most welcome.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »