Universal Child Care Benefit (UCCB)
The UCCB, up to the end of 2014, was only for children under the age of 6, and was paid in instalments of $100 per month per child.
The October 2014 Federal Tax Update, which received Royal Assent on June 23, 2015, increased the UCCB for children under 6 to $160 per month per child, and introduced 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 In conjunction with this change, the Child Amount Tax Credit was repealed. These changes 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.
To receive the enhanced UCCB, families may have to sign up. If you have children under 18 for whom you have not previously applied for the UCCB or the Canada Child Tax Benefit (CCTB), you will need to apply for the enhanced UCCB. If signing up after May 15, 2015, the payments will start later than the July 2015 payment, but will still be retroactive to January 1, 2015. You can expect to hear from Canada Revenue Agency (CRA) within 80 calendar days after they receive your application. See the CRA information on the UCCB for more information.
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:
The UCCB amount cannot be split between taxpayers.
UCCB income is not included in the calculation of:
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: June 30, 2015
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