Smart tax tips:

Enhanced Universal Child Care Benefit (UCCB)

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  • Enhanced Universal Child Care Benefit (UCCB)
  • Under proposed legislation, the government is increasing and expanding the UCCB starting in January of this year. Subject to the legislation receiving Royal Assent, the first enhanced payment is expected to be issued in July 2015 and will include any retroactive payments for the period January 2015 to June 2015.


    What are the enhancements?


    The enhancements to the UCCB include a benefit of $160 per month for each child under the age of six (up from $100 per month), as well as a new benefit of $60 per month for each child aged six through 17.


    For example, if you have two children, ages three and eight, you should expect to receive a total UCCB payment of $940 in July—a retroactive payment of $7201 and the new monthly payment of $220 ($160 + $60) for July 2015.


    What do you have to do to get the enhanced payment?


    If you are the parent of a child under the age of 18, you may or may not automatically receive the enhanced UCCB. You will automatically receive the benefit if:


              • you are currently receiving the Canada Child Tax Benefit (CCTB) or
                UCCB for all of your eligible children, or
              • you previously received the CCTB or UCCB for all of your eligible
                children (even though you are not currently receiving these benefits)
                and your personal information has not changed since then.


    If you have not previously received the CCTB or UCCB for some of your eligible children, you will need to apply for the enhanced UCCB. You can apply online by using “Apply for child benefits” through the CRA’s My Account online service. You can also fill out Form RC66, Canada Child Benefits Application, and send it to your tax centre with the supporting documents.


    Keep in mind that these payments are generally taxable to the lower income spouse for the tax year they are received. The one exception is for single parents, who would either include the amount received in their own income or elect to include it in the child’s income. Also, while the UCCB is being enhanced, the Child Tax Credit is being repealed beginning in 2015. This is a non-refundable credit which reduced federal tax payable by up to $338[2] (in 2014) for each child under the age of 18.


    1 ($60 x 2 children) x 6 months.


    2 $2,255 x 15% rate

    April 27, 2015