IMPORTANT: The Universal Child Care Benefit (UCCB) has been replaced with the new Canada Child Benefit (CCB) effective July 2016.
The Universal Child Care Benefit was a taxable benefit designed to help families with children under the age of 18 to manage the cost(s) of raising a child. The monthly benefit amount you received, depended on the age of your child:
- $160 per month for each child under the age of six or
- $60 per month for each child aged 6 to 17
In order to have received the UCCB, you must have met the following eligibility requirements:
- You lived with the child
- You were the person who was primarily responsible for the child’s care
- You must be a resident of Canada and
- You and your spouse or common-law partner must be a:
- Canadian citizen
- Permanent resident
- Protected person, as defined by the Immigration and Refugee Protection Act or
- Temporary resident, as defined by the Immigration and Refugee Protection Act
Tax Tip: Because the UCCB is a taxable benefit, it must be claimed by the spouse or partner with the lower net income.
What does it mean to be primarily responsible?
Canada Revenue Agency (CRA) says…
Primarily responsible means that you are responsible for such things as supervising the child’s daily activities and needs, making sure the child’s medical needs are met, and arranging for child care when necessary. If there is a female parent who lives with the child, the CRA usually considers her to be this person. However, it could be the father, a grandparent, or a guardian.
Can I transfer the UCCB amount to an eligible dependant?
Yes. If you indicated that your marital status in 2016 was single, separated, divorced, or widowed, you might want to consider transferring this amount to the child you’re claiming as an eligible dependant so that the benefit amount will be taxed at a lower rate than your own.
For example, let’s say that you received $1,200 from the UCCB and your personal tax rate is 22%. Your tax liability for this amount will be $264 ($1,200 x 22% = $264). If you transferred this amount to your eligible dependant, the tax liability on this amount would be $180 because it’s being taxed at your child’s lower tax rate of 15% ($1,200 x 15% = $180). A difference of $84 might not sound like much, but it’s money that will stay in your pocket.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
- Under the QUICK ENTRY tab, click the QUICK SLIP icon.
- Type RC62 in the search field and either click the highlighted selection or press Enter to continue.
- When you arrive at the page for your Universal child care benefit statement, enter your information into the tax software.
