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The Canada Dental Care Plan (CDCP) helps make dental care more affordable for many families. However, it's not for everyone. Whether you qualify, and how much the plan covers, depends on your family's income.

The most important number is your Adjusted Net Family Income (AFNI).

What is Your Adjusted Net Family Income (AFNI)?

Your AFNI is your family's total income after certain deductions allowed by the Canada Revenue Agency (CRA). It's the number the government uses to figure out if your family needs help with dental costs.

From Your Tax Returns: Your AFNI comes directly from the income and deduction information on your most recent income tax return, and your spouse's or common-law partner's if you have one.

Family Total: If you have a spouse or common-law partner, both of your incomes are added together to get your family's AFNI. This is true even if only one of you is applying for dental care.

The $90,000 Income Limit: Are You Eligible?

The first step to see if you qualify for the CDCP is checking your AFNI.

• If your AFNI is $90,000 or more: Your family is not eligible for the Canada Dental Care Plan. There are no exceptions to this income limit.
• If your AFNI is less than $90,000: Good news! You meet the first income rule and may be invited to apply for the CDCP. However, how much the plan covers depends on where your AFNI falls within the levels below.

How Much Will You Pay? Understanding Co-Payments

The CDCP uses a sliding scale for coverage. This means that if your AFNI is less than $90,000, you're eligible, but the amount you pay out-of-pocket (called a "co-payment") will vary.

Your co-payment is the percentage of the dental service fee that you will pay to the dentist.

Here's how the co-payment tiers work:

AFNI less than $70,000:

• Co-payment: 0%
• What this means: The CDCP will cover 100% of the cost for services included in the plan. You pay nothing directly to the dentist for these covered services. This tier offers the most help.

AFNI between $70,000 and $79,999.99:

• Co-payment: 40%
• What this means: The CDCP will cover 60% of the cost of covered services. You will pay the remaining 40% directly to your dentist.
• Example: If a covered filling costs $150, you would pay $60 (40%), and the CDCP would cover $90 (60%).

AFNI between $80,000 and $89,999.99:

• Co-payment: 60%
• What this means: The CDCP will cover 40% of the cost of covered services. You will pay the remaining 60% directly to your dentist. This is the highest co-payment for eligible families.
• Example: If a covered dental exam costs $80, you would pay $48 (60%), and the CDCP would cover $32 (40%).

Important Points if Your Income is Close to the Limit

• Small Changes Matter: Even small changes in your income or certain tax deductions can shift you into a different co-payment tier, or even make you ineligible.
• Deductions Can Help: Some tax deductions, like contributions to Registered Retirement Savings Plans (RRSPs), can lower your "Net Income" on your tax return. This, in turn, lowers your AFNI, which could help you qualify or move to a lower co-payment tier.

Important: This is general information, not tax advice. Always talk to a financial advisor for personalized advice.

File Your Taxes on Time: The CRA needs your accurate and timely tax returns (for you and your spouse/common-law partner) each year to figure out your AFNI and CDCP eligibility.

How Your Income Changes Affect Eligibility Each Year

This is a key point: your CDCP eligibility and co-payment tier are checked every year based on your most recently filed tax return.

• It's Based on Last Year's Income: For example, your eligibility for 2024 is usually based on your 2023 tax return (your 2023 AFNI).
• If Your Income Drops: If your family income goes down a lot in a year (e.g., job loss, fewer hours, retirement), you might become eligible for the CDCP if you weren't before, or you might move to a tier where you pay less (e.g., from 60% to 40%, or to 0%).
• If Your Income Rises: If your family income goes up, you might move to a higher co-payment tier, or even become ineligible if your AFNI goes over $90,000.
• Not Automatic: Your eligibility is not guaranteed year after year. It's re-evaluated annually based on your latest tax information.

What This Means for You: Don't assume that once you're in the CDCP, you'll always be in, or that your co-payment will stay the same. Your income changes can affect your eligibility and costs. The best way to ensure you're considered correctly is to always file your income tax returns on time.

Your tax return does more than just determine your taxes; it's your yearly financial report that helps you access important programs like the CDCP. By understanding your Adjusted Net Family Income and how it links to your coverage, you can better plan for your dental health.

Disclaimer: This information is for general guidance only and is not tax or financial advice. For specific advice about your tax situation or the CDCP, please consult a qualified tax professional or check the official CRA and Service Canada websites.

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Dentist St. Albert