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Universal Child Care Benefit (UCCB)

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Universal Child Care Benefit (UCCB)

The UCCB, up to the end of 2014, is for children under the age of 6, and is paid in instalments of $100 per month per child.

The October 2014 Federal Tax Update proposes to increase the UCCB for children under 6 to $160 per month per child, and to introduce a UCCB for children ages 6 to 17 in the amount of $60 per month per child.  In conjunction with this change, the Child Amount Tax Credit is proposed to be repealed.  These changes would take effect January 1, 2015, but the UCCB payments will not change until the July 2015 payment.  At this time the amounts for January to June will also be paid.

Children are enrolled for the UCCB through the Canada Revenue Agency website via the application for Canada Child Benefits, or by applying online on My Account, using the apply for child benefits service.

Reporting UCCB income on the tax return

For taxpayers with a spouse or common-law partner, the UCCB income must be reported by the spouse with the lower net income.  This is done automatically in our Tax Planning Calculators.

For a taxpayer who is a single parent at the end of the year, starting with the 2010 tax year, there are 2 options:
bullet report all the UCCB income in the taxpayer's own income (line 117 of the tax return), or
bullet report all the UCCB income in the income of a dependent for whom the eligible dependent (line 305, aka equivalent to spouse) is being claimed.  If the eligible dependent amount is not being claimed, all of the UCCB income can be reported in the income of a child for whom the UCCB was received.  In this case, the taxpayer will report the UCCB amount on line 185, below and to the left of line 117 on the tax return.  Line 117 should remain blank.

The UCCB amount cannot be split between taxpayers.

UCCB income is not included in the calculation of:
bullet the GST/HST credit
bullet Canada Child Tax Benefits (CCTB)
bullet any provincial territorial credits or benefits related to the GST/HST credit or the CCTB
bullet repayment of social benefits (line 235)
bullet refundable medical expense supplement (line 452)
bullet Working Income Tax Benefit (WITB) (line 453)

If a lump sum of UCCB was received in the tax year, part of which applied to a previous year, the entire amount must be reported on the tax return for the year in which it was received.  However, if the total relating to a previous year is $300 or more, Canada Revenue Agency (CRA) will do a calculation determining the total tax payable if that amount was included in the previous year income.  If the revised total tax is less, they will adjust the tax payable.  This special calculation is done only if the UCCB income is reported by the taxpayer, and not by the dependent.

The RC62 slip is the statement of Universal Child Care Benefit that will show the total benefit paid in the year, in box 10, with a breakdown showing the benefit related to each year.  Box 12 shows any repayments of previous years benefits.

If a UCCB amount that was included in income in a previous year was repaid, the repayment amount can be deducted on line 213 of the tax return.  It must be deducted by the taxpayer who included the amount in income in the previous year.

 

Revised: November 01, 2014

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