If you see an unknown deposit in your bank account marked Canada FPT deposit, it’s usually a good thing.
Let’s go over what it is, why you’re receiving it, and if it will become a regular payment.
What Is Canada FPT Deposit?
The “FPT” in the “Canada FPT Deposit” stands for Federal-Provincial-Territorial, meaning it covers all the government and regulatory body levels. It’s a financial transaction code that marks certain benefit payments or tax credits you may receive.
If you see a payment marked “Canada FPT deposit” in your bank account, it might be one of the following:
- Canada Child Benefit (CCB);
- Goods and Services Tax (GST) or Harmonized Sales Tax (HST) credit;
- BC Climate Action tax credit if you live in BC;
- Ontario Senior Homeowners’ Tax Grant
- Other similar provincial programs.
You can receive numerous Canada FPT deposits per year if you’re enrolled in multiple programs.
Canada FPT Deposit: “The Baby Bonus”
A lot of people still refer to the Canada Child Benefit (CCB) payments as “the baby bonus.” So, if that’s the term you are comfortable with, and the amount you receive is according to how much you are eligible to receive, that’s what your Canada FPT deposit most likely is.
Before 2016, the CCB-related Canada FPT deposit used to be the “Universal Child Care Benefit.” It was a payment that every Canadian parent received for children under the age of six, regardless of household income. The benefit was scrubbed and replaced by CCB, targeting Canadian households that need it.
CCB payments are usually released on the 20th of every month. Based on which day the 20th is falling, the payment might be moved to the 19th or 18th. A few things to note about your CCB-related Canada FPT deposit are:
- You might receive the first payment a few months after your child is born, and it might be a “beefed-up” sum because of retroactive payments.
- If you are divorced but still hold partial custody of the children, you might receive a CCB payment dubbed “Canada FPT deposit” in addition to your spouse’s share. It might be a hefty sum because it’s calculated back to the month of your legal separation.
For disabled children, the additional payment might be rolled in with your regular CCB payment.
What Are The CCB Payment Dates in 2023?
If you’re eligible to receive the Canada Child Benefit (CCB) based on your previous year’s tax returns, then you can expect to receive a monthly payment from the CRA during the third week of the month.
The only exception is in December when the payment is issued on the 13th, so parents have money to spend during the holidays, and transfers aren’t interrupted by bank holidays. Here are the CCB payment dates for 2023:
- January 20, 2023
- February 20, 2023
- March 20, 2023
- April 20, 2023
- May 19, 2023
- June 20, 2023
- July 20, 2023
- August 18, 2023
- September 20, 2023
- October 20, 2023
- November 20, 2023
- December 13, 2023
Keep in mind that your monthly CCB payment may take up to 10 business days to arrive in your account. Generally speaking, you can expect it in under a week, though. This is why the payments are issued during the third week of the month instead of at the end of the month.
Canada FPT Deposit: GST/HST Tax Credit
If you file your taxes and your household income falls below a certain threshold, you might be eligible for a GST/HST tax credit. However, it’s important to note that this particular tax benefit might not always come with the Canada FPT deposit label and might have a different name on your chequing account.
The GST/HST tax credit payments are usually issued quarterly, and the amount varies not just with your income but also with your filing status and the number of children.
What Are The GST/HST Payment Dates in 2023?
Canada’s GST/HST credit is a tax credit that’s given to eligible lower to middle-income families and individuals in Canada.
Unlike the CBB, which is a monthly payment, you can expect to receive your GST/HST payment during the first week of each quarter (every three months), in January, April, July, and October.
Here are the GST/HST payment dates for 2023:
- January 5th, 2023
- April 5th, 2023
- July 5th, 2023
- October 5th, 2023
Your GST/HST payment amount can vary from one year to the next, depending on your tax returns, personal living situation, income level, and dependents living with you. Visit the CRA’s website to calculate your estimated GST/HST payment credit.
How To Verify Which Credit/Benefit Payment Your Canada FPT Deposit Is?
Short answer: through your CRA My Account. If you are uncertain what this particular payment in your bank account means, it’s a good idea to check your CRA My Account.
On your CRA My Account, you will easily be able to solve the mystery of the FPT deposit because there, you’ll find details of the benefit you are eligible for.
Note that in case of a separation or joint filing when your ex-partner or ex-spouse hasn’t filed their taxes or updated their details with the CRA, you might not get the information you are looking for, but it’s a rarity.
What Isn’t A Canada FPT Deposit?
While Canada FPT deposit can refer to multiple payments made by the federal and provincial government, it is also a good idea to exclude what Canada FPT deposit might not be. It can’t be:
- Canada Emergency Response Benefit (CERB)/ Canada Recovery Benefit (CRB);
- Employment Insurance (EI) benefits;
- Canada Pension Plan (CPP)/ Old Age Security (OAS) pension;
- Canada Workers Benefit (CWB);
- Ontario Trillium Benefit (OTB) for Ontario residents; or
- Alberta Child and Family Benefit (ACFB) for Alberta residents.
Do You Need To File Your Taxes To Receive The Canada FPT Deposit?
Canada FPT deposits are federal bank deposits issued by the Canada Revenue Authority. They’re either the result of a federal tax credit (such as the GST/HST credit or the CCB) or a local provincial rebate or tax credit.
Your eligibility for these tax credits is largely dependent on factors such as:
- Your family’s annual income
- Children or dependents living with you
- Your age
The CRA and provincial governments use the data from your annual income tax returns to determine your eligibility for these programs and credits. This streamlines the process, so you don’t have to apply for benefits separately.
The flipside of this, though, is that you must file your income taxes to receive a Canada FPT deposit.
The good news is that you can get back pay for many CRA and provincial tax credits for up to three years. So, if you’ve missed a year or more worth of income tax returns, then you may be eligible to receive a Canada FPT deposit, based on your eligibility for government programs.
If you’ve received a Canada FPT deposit, you may be wondering how it will affect your tax returns. Technically speaking, you’re supposed to report all forms of income (even gifts) on your tax returns. Logically, it makes sense to claim a direct deposit into our bank accounts.
Thankfully, Canada FPT deposits are NOT taxable.
When you receive a Canada FPT deposit, it’s the direct result of a federal or provincial tax credit or assistance program. All of these credits and programs are 100% tax-free. This means that you don’t have to pay taxes on your Canada FPT deposit or claim the amount on your income tax returns.
Since the deposit was issued by the CRA, they’re already sure that you’ve received it. Plus, the tax credit or assistance program you’re in is funded with others’ taxes, meaning that the money itself has already been taxed.
This also means that your Canada FPT deposit won’t affect you and/or your spouse’s annual income report, which means that it won’t affect your eligibility for other government programs and credit that you may be receiving.
How To Use Your FPT Money
When you receive tax-free money from the government, the best thing that you can do with it (if you’re not in immediate need of it) is to invest or save it.
For instance, if you receive the Canada Child Benefit and don’t need it for your child’s immediate needs, you could invest it into a Roth IRA account so that it could grow into a sizable investment for your child one day.
With that in mind, here are some quick ideas for those looking to invest their Canada FPT deposit.
1. Create An Emergency Savings Fund
Every individual and family should have an emergency savings fund. The unexpected is always around the corner, and it’s always best to be prepared.
Emergency medical expenses, home repairs, car repairs, or veterinarian bills could easily cost hundreds or thousands of dollars.
2. Invest In Stocks & ETFs
If you like the idea of active trading and investing, you could invest your Canada FPT deposit into a stock trading account. Here, you’ll be able to invest in the country’s top stocks and ETF portfolios.
On the other hand, if you don’t have time to do the necessary market research and don’t want to take all of the risk yourself, you can invest using a robo-advisor service like WealthSimple Invest. This will help you find promising stocks according to your investment goals.
3. Invest Into A Retirement Fund
It’s never too early to start planning for your retirement. The earlier you start investing in a retirement fund, the earlier and more comfortable you’ll be able to retire.
Your retirement fund contributions may count as a tax deduction as well, which is just another reason to consider them. For a full guide on saving and investing for your retirement, check out my guide on how to retire in Canada by 50.
4. Start A Side Hustle
Coming up with an idea for a side hustle and investing in it could be the solution you need to achieve financial freedom. If invested wisely, your side hustle could turn into a profitable side business (or even become your main source of income).
Then, you can invest your extra money into stocks, retirement, or even real estate. It all starts with one good idea and a bit of capital. Sometimes, the best side hustle ideas don’t even require you to invest a lot of money. Remember, every million-dollar company started out as a simple idea.
Instead of spending your Canada FPT deposit, consider investing it into your business so that it can work for you to help you earn more income.
Before we go, here are a few quick answers regarding commonly asked questions I’ve seen about the Canada FPT deposit.
First, complete your income tax returns to determine your eligibility for any government assistance programs or tax credits.
If you’re eligible, your credit or payment will be issued by the CRA as a Canada FPT deposit. You shouldn’t have to apply for these programs separately and the benefits should be automatically applied.
No. Since the Canada FPT deposit is a credit based on your previous year’s tax returns, it does not apply to the current tax year. Canada FPT deposits such as the CCB and GST/HST credit are all tax-free payments, and don’t count as income.
Can FPT Payments Be Accidental?
Since your eligibility for government programs is based on data from your tax returns, there’s little chance that your Canada FTT payment was accidental. However, if you or your accountant make an error on your tax returns, and the error is reassessed by the CRA, then it could affect your benefits.
If you received a Canada FPT deposit that you weren’t really eligible for, then the CRA will require you to pay it back with a payment plan, using future credits, or your income tax returns.
What’s The Difference Between Canada FPT Deposit & GST/HST Deposit?
There is no difference between the GST/HST deposit. In many cases, your GST/HST payment will appear on your bank statements as a Canada FPT deposit. FPT is an anagram for, “Fed-Provincial/Territorial” which means that the payment could come from either of these sources.
Where Will My Canada FPT Deposit Be Sent?
Your Canada FPT deposit should be sent to the bank account that you have registered with the CRA, which is the same bank account where you’ll receive your annual income tax returns.
If you haven’t set up a bank account with the CRA yet, then I suggest creating a CRA MyAccount profile to set up your online account.
If you don’t have a bank account on file, you may receive your Canada FPT deposit in the form of a mailed cheque. This isn’t recommended, though, as it could become lost in the mail.
Now that you have an idea about the Canada FPT deposit, you probably agree with my assessment that it’s nothing to worry about.
However, if you receive the payment, it’s a good idea to check your CRA My Account just in case and verify just what it is that you’ve received.