Mr. and Mrs. Lee have a combined net family income of $50,000. They have two children, aged 5 and 10. Assuming the 2024 Child Benefit (CCB) rates and thresholds, which of the following actions would most likely increase their CCB payments?

Question: Mr. and Mrs. Lee have a combined net family income of $50,000. They have two children, aged 5 and 10. Assuming the 2024 Child Benefit (CCB) rates and thresholds, which of the following actions would most likely increase their CCB payments?

Answer options:

• Increasing their Tax-Free Savings Account (TFSA) contributions. ✅ Contributing to a Registered Retirement Savings Plan (RRSP) for one of the spouses.
• Selling a principal residence and realizing a capital gain.
• Increasing their annual charitable donations.

Correct answer: Contributing to a Registered Retirement Savings Plan (RRSP) for one of the spouses.

Explanation: The CCB is a non-taxable monthly payment made to eligible families to help them with the cost of raising children. The amount received is based on the family's adjusted net income (ANI). Contributions to an RRSP reduce an individual's taxable income and therefore their ANI, which can result in an increase in CCB payments. TFSA contributions do not affect ANI. Selling a principal residence does not typically result in a taxable capital gain. Charitable donations create a tax credit but do not reduce ANI for this purpose.