Did you receive a deposit in your bank account with the caption “Canada Fed” and wondering what it is? It is a direct payment from the Canadian federal government.
You may be used to merchants using abbreviations and codes when charging your credit card or bank account. And then you struggle to figure out what the charge relates to.
Like merchants, the Canadian government also issue out several direct deposits with unclear and often vague descriptions. The Canada Fed deposit is one of them.
This post covers what Canada Fed deposit is and how you can confirm the payment with CRA.
What is Canada Fed Deposit?
Canada Fed deposit is a payment from Canada Revenue Agency (CRA) on behalf of the federal government.
Payments issued with the caption can be rebates, credits or one of the benefits administered by CRA and received as direct deposits.
In most instances, Canada Fed is a financial assistance payment for low to modest income Canadians such as GST/HST credit, Canada workers benefit (CWB) and even the monthly Canada Child benefit (CCB).
Government Programs Paid as Canada Fed Deposit
In the past, the various government rebate, benefit and tax credit programs below have been received as Canada Fed deposit in the bank account of eligible Canadians.
The common ones include:
Canada Child Benefits (CCB)
CCB was designed to help families with the cost of raising their children. It is administered by CRA and provides a tax-free, monthly payment to eligible families with children below age 18.
In addition, families may also receive related provincial benefits where applicable. An example is the Ontario Child Benefit.
Families have received this monthly payment as Canada Fed in the past. More recently, the CCB young Child Supplements for 2021 of $600 or $300 paid to families were captioned as Canada Fed in some bank accounts.
The first payment was issued on May 28, 2021, and families can expect the balances on July 30, 2021 and October 29, 2021.
So if you received a deposit with a caption “Canada Fed” on any of these dates, then it’s likely the CCB Young Child Supplements.
Learn more about Canada Child Benefits and the payment dates here.
GST/HST Tax Credit Payments
The goods and services tax/harmonized sales tax (GST/HST) credit is a quarterly payment to individuals and families with low to modest income.
It is a tax-free payment that is designed to offset or compensate for some of the sales taxes that Canadians pay through GST and HST.
Your GST/HST credit is calculated using the previous year’s net income and paid starting in July till April of the following year.
For example, the GST credit that’ll start going out from July 2021 are calculated using the net income reported on the 2020 income tax returns.
Learn more about GST/HST Credit and its payment dates.
Canada Workers Benefit (CWB)
Canadian workers benefit (CWB) is a replacement to the Working Income Tax Benefit (WITB) that was introduced in 2019. It is a non-refundable tax credit for individuals and families that work but earn low income.
The credit can be claimed when you file your taxes, however you can also get 50% of your estimated credit in advance by applying.
The advance payment is paid quarterly on the same dates a GST/HST tax credit.
Learn more here: Canada Workers Benefit Payment dates
Payment to Persons with Disability
As part of its measures to respond to the financial impact of COVID-19 pandemic, the federal government paid $600 to people with disability.
This was a one-time payment available to eligible Canadians with the payments starting on April 23, 2021. Both seniors and children with disabilities were covered.
In many instances, the payments were made via direct deposits and some recipients got the amounts with a Canada Fed caption in their bank account.
Learn more: Social Assistance Benefits in Canada
Confirming the Canada Fed Deposit
CRA My Account is your best bet if you want to confirm what the Canada Fed deposit in your account relates to.
If you’re registered for My Account, simply login to your account to view your benefit information and check your mail section for any correspondence from the CRA.
My Account is a convenient, fast and secure portal from CRA that lets you easily manage and view your tax and benefits information online.
You can find and check your credits, benefits and refunds through My Account.
If you’re not already enrolled for the service, check the CRA registration guide here for instructions on how to register for My Account.
Is Canada Fed Taxable?
The Canada Fed deposits are not taxable. All the payments made using the description are tax-free benefits and credits.
For example, the Canada Child Benefit (CCB) is a non-taxable benefit to eligible families, while GST/HST credit and Canada Workers Benefit (CWB) advance payments are tax-free credits.
That means, you won’t have to report the deposits on your income tax returns when you file your taxes.
So what should you do with your Canada Fed deposit?
It is really yours to do as you please. But consider putting it towards one of your financial goals.
How much is Canada Fed?
Your Canada Fed deposit payment will depend on which government benefit or credit it relates to. For example, you can receive up to $563.75 per month if it’s CCB payment for a child aged 6 and below or $475.66 for older kids.
The extra CCB payment through the Young Child Supplements is also $300 per quarter.
Also, you can get up to $456 a year, but paid in 4 quarterly installments, for GST/HST credit if you’re single, or higher if you have a spouse or common-law partner and kids.
When is Canada Fed Deposit Paid?
Again, the payment dates will vary depending on the benefit or credits you’re receiving.
Canada Child Benefits are paid monthly, usually on day 20 except it falls on a weekend or public holiday.
For the CCB Young child supplements, the Canada Fed Payment dates in 2021 were on:
- May 28, 2021
- July 30, 2021
- October 29, 2021
GST/HST credit and Canada workers benefit are paid quarterly in January, April, July and October on the 5th day.
Canada Fed Deposit Eligibility
Since the Canada Fed can be for any of the three benefit programs namely CCB, GST/HST and CWB, you will be eligible for the Canada Fed deposit once you’re a beneficiary of any of the three deposits.
The following table highlights the basic requirements for the three deposits.
|CCB||Be a Canadian citizen or permanent residentBe the custodian and have main responsibility of a child under 18-year old|
|GST/HST||Be at least 19 years Be a Canadian resident for tax purposesHave/had a spouse or common-law partnerHave/had a biological child under your custody.|
|CWB||Be at least 19 years oldBe a Canadian residentHave a means of incomeLive with your child, spouse or common-law partner.|
Of course, you can qualify for all the three deposits and receive the Canada Fed deposit on their scheduled payment dates.
Canada Fed & Additional Deposits in Canada
You can receive the Canada Fed deposits while receiving other additional benefits, such as Canada Pro, Canada RIT and Canada FPT.
All of these deposit descriptions have been used by CRA to pay the benefit amounts for some of the programs it administers.
We’ll provide a short overview of each of the deposits below:
1. Canada Pro
This is a deposit description for Ontario Trillium Benefit (OTB) and Alberta Child and Family Benefit (ACFB).
You can receive the Canada Fed deposit alongside OTB or ACFB once you meet the eligibility. The Ontario Trillium Benefit is paid to low-medium Ontarians that qualify for:
- Ontario Energy and Property Tax Credit
- Ontario Sales Tax Credit, or
- Northern Ontario Energy Credit (NOEC)
On the other hand, the Alberta Child and Family Benefit is for Alberta taxpayers with one or more under 18-year children. Since the deposit is also targeted to low-medium individuals, you must meet a particular family income threshold to qualify
Learn more about the Canada Pro Deposit here.
2. Canada RIT
Canada RIT stands for Canada Refund Income Tax rebate and it is another popular description that many Canadians have reported seeing in their bank accounts.
The deposit is administered by the Canada Revenue Agency (CRA) on behalf of the federal government to eligible taxpayers.
As expected, how much you get depends on your taxable income, your tax liability and how much tax you or other parties (e.g. an employer) has remitted to CRA for the tax period.
Unlike other tax rebates, Canada RIT is administered only a few days or weeks after filing your annual tax report. However, it may take a long while to receive the deposit, especially if the CRA needs to reassess your taxes.
Learn more about the Canada RIT Deposit
3. Canada FPT
You can also receive the Canada Fed alongside Canada FPT, an umbrella term for various provincial/territorial benefits, such as:
- Canada Child Benefit (CCB)
- Goods and Services Tax/Harmonized Sales Tax (GST/HST) and
- BC Climate action tax credit
The Canada FPT deposit is administered per the payment schedules of each featured provincial/territorial program.
For example, CCB deposits are administered monthly, while GST/HST deposits are administered quarterly.
Learn more about the Canada FPT
FAQs: Canada Fed Deposit
How much Canada Fed deposit you get is determined by your situation and the credit/benefit you’re eligible for.
For example, you can receive up to $6,833 per under 6-year child in 2022 under the CCB. You can receive up to $456 per individual under the GST/HST credit.
Canada Fed on your bank statement is a caption for a direct deposit from the federal government for Canada Child Benefit (CCB), Goods and Services Tax/Harmonized Sales Tax (GST/HST) or Canada Workers Benefit (CWB).
The Canada FPT deposits are paid according to the payment schedules of the underlying benefit such as Canada Child Benefit (CCB), Goods and Services Tax/Harmonized Sales Tax (GST/HST) and Canada Workers Benefit (CWB).
That said, CCB deposits are administered monthly, while GST/HST deposits are administered quarterly. However, you can receive your complete CWB payment at once during tax season.
Every now and then, you may receive a deposit in your bank account with unclear narrations like the Canada Fed deposit. In fact, there are other such deposits like Canada Pro, Canada RIT and Canada FPT.
Unfortunately, your bank will not be able to provide more information especially if it’s a government payment from CRA.
So the easiest and fastest option is to login to your CRA My Account to confirm the payment. And if you’re not enrolled, you can call CRA on the phone while you take the steps to register for the account.