If you’re a foster parent, you might qualify for a tax-free allowance that’s designed to help with the cost of raising a foster child. The Children’s special allowances (CSA) is a monthly payment that’s paid to agencies (such as children’s aid societies) that care for children under the age of 18 who live in Canada. Upon request from the agency, the CSA payments can be paid directly to the foster parents.
Your CSA monthly payment is equal to the maximum Canada child benefit (CCB) amount plus the child disability benefit. The payment automatically stops once the child turns 18.
Note: Keep in mind, prior to July 2016, the CSA was equal to the Canada child tax benefit (CCTB) plus the child disability benefit. However, effective July 2016, the Canada child benefit (CCB) has replaced CCTB and your CSA payment amount might have changed since then.
How do I apply for CSA payments?
As a foster parent, you don’t need to apply for the CSA payments. Instead, the agency caring for the child will need to complete the RC64 form to direct the CSA payments to you.
Once the child stops being in your care, the agency must complete another RC64 form to stop the CSA payments and/or redirect them to the new foster parents.
Where can I learn more?
- Children’s Special Allowances (CSA) (CRA website)
- Children’s Special Allowances (CSA) fact sheet (CRA website)