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? Are we eligible?

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 20^th of every month. Based on which day the 20^th is falling, the payment might be moved to the 19^th or 18^th. 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.

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.

Canada FPT Payment Dates

The payment dates for Canada FPT (Federal Provincial Territorial) depend on the type of benefit you’re receiving. Below is a breakdown:

GST/HST Credit and BC Climate Action Tax Credit

These are paid quarterly on the following dates:

Canada Child Benefit (CCB)

This is paid monthly on these dates:

If you see a Canada FPT deposit in your account, the payment date can help you identify whether it’s for GST/HST, BCCATC, or CCB.

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.

Who is Eligible for a Canada FPT Deposit?

If you meet the eligibility criteria for specific programs, you can receive Canada FPT benefits without applying separately. The Canada Revenue Agency (CRA) automatically determines your eligibility based on your income tax filings. Below are the requirements for two key programs:

Eligibility for Canada FPT Benefits

The eligibility criteria for the Canada Child Benefit (CCB) and GST/HST Tax Credit are outlined below:

Key Notes:

1. Automatic Enrollment: As long as you file your taxes annually, you don’t need to apply for Canada FPT benefits separately.
2. CRA Verification: The CRA reviews your tax returns to determine eligibility.

By ensuring you meet the above requirements, you can benefit from government support under the Canada FPT programs.

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.

Is The Canada FPT Deposit Taxable?

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.

Frequently asked Questions (FAQs)

Before we go, here are a few quick answers regarding commonly asked questions I’ve seen about the Canada FPT deposit.

How Do I Receive 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.

Do I Have To Report The Canada FPT Deposit On My Tax Returns?

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.

Conclusion

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.

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