If you’re reading this, you’ve most likely received a direct deposit from “Canada FED”.
A Canada FED deposit is a direct deposit of funds from the Government of Canada for a benefit or a tax refund.
If you’ve received this kind of deposit, it could be for a variety of reasons.
Maybe you got an income tax refund, or perhaps you qualified for certain programs like the Canada Child Benefit, the Canada Child Disability Benefit, the Climate Action Incentive Payments, the GST/HST credit, or the Canada Workers Benefit.
If you are unsure of why you received a Canada FED deposit, or want to know the exact benefit it was for, you can contact the CRA at 1-800-387-1193 for more information.
Did You Know?
Confused about what “Canada FED” stands for? It’s just the short form for “Canada Federal/Provincial/Territorial”. It serves as an all-encompassing term for all the possible government benefits it could be for.
How Much is Canada FED Deposit?
The amount of a Canada FED deposit can vary depending on the specific benefit or refund that you are receiving.
There is no standard amount for a Canada FED deposit, as the amount will depend on the individual circumstances of each payment.
If your Canada FED Deposit was an income tax refund or over-payment of income tax—these numbers in particular can vary greatly from person to person.
That said, we’ll go over a few different government programs and the payment amounts below to help you potentially piece together the reason why you may have gotten a Canada FED payment.
Canada Child Benefit
The Canada Child Benefit (CCB), also called the “Baby Bonus”, is a monthly payment (usually paid out on the 20th of the month) that aims to support families with children under the age of 18.
From June 2023 to June 2024, the maximum annual amount you could receive for the CCB is $7,437 per child under the age of 6 ($619.75 per month), and $6,275 per child aged 6 to 17 ($522.91 per month).
But for the most part, the amount of CCB you receive will depend on how many children you have, their ages, whether they have a disability, and your adjusted family net income.
Learn more about the Canada Child Benefit.
Canada Child Disability Benefit
Similar to the Canada Child Benefit, the Canada Child Disability Benefit is a monthly payment for families to help with the extra costs associated with caring for a child with a disability.
From June 2023 to June 2024, each child eligible for the child disability benefit could receive up to $3,173, which would translate to monthly payments of $264.41.
Learn more about the Canada Child Disability Benefit.
Climate Action Incentive Payments
The CAI is a quarterly payment made to eligible persons living in Alberta, Saskatchewan, Manitoba or Ontario, since these provinces charge their residents a federal carbon tax.
As of July 1, 2023, this federal fuel charge will also be applied to residents of Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
The total amount you could receive varies based on the size of your household and the province you live in, going from $120 to $386 quarterly.
Learn more about the Climate Action Incentive.
GST/HST Credit
The GST/HST credit is a payment made quarterly (usually on the 5th of the month) to Canadians with lower incomes to help offset the GST/HST that they pay.
For the July 2023 to June 2024 GST/HST credit payment period, singles can receive up to $496, married folk and those with a common-law partner can receive up to $650, and you could also receive up to $171 for each child under the age of 19.
Learn more about the GST/HST credit.
Canada Workers Benefit
The Canada Workers Benefit (CWB) is a government payment that supports low-earning, working Canadians.
The maximum basic amount for singles is $1,428, and for families, it’s $2,461.
This amount will vary depending on your adjusted net income and the province or territory you live in.
Learn more about the Canada Workers Benefit.
Is Canada FED taxable?
Whether a Canada FED deposit is taxable or not depends on the specific benefit or refund that you are receiving.
Some government benefits and refunds are taxable, while others are not.
For example, the Canada Child Benefit (CCB) and the Canada Child Disability Benefit (CCDB) are not taxable.
However, some other benefits such as Old Age Security (OAS) and Canada Pension Plan (CPP) payments are considered taxable income.
But most of the time, if you’re receiving a payment from “Canada FED”, it won’t be taxable.
The only way to find out with certainty if it’s taxable is by figuring out what the payment is for.
If you don’t know why you’re receiving the payment, get in touch with CRA over the phone at 1-800-387-1193 between the hours of 8am to 8pm ET on Monday to Friday, and 9am to 5pm ET on Saturdays.
Frequently Asked Questions
- Why did I get a Canada FED Deposit?
- How often is the Canada FED paid out?
Tara Al-Khudairihas worked in the financial services industry since 2017. She graduated from McMaster University with a degree in Finance and is pursuing her CFA.
She has worked at a major Canadian financial institution in various client-facing advisory roles, starting as a bank teller and working up to a Client Services Associate within the Asset Management division. She specializes in simplifying concepts of personal finance for people of various financial backgrounds.
When she’s not examining the markets looking for the next SHOP.TO, she’s either practicing yoga, planning her next vacation, or has her nose buried deep in a book.
