Universal Child Care Benefit (UCCB) Enhancement

Some questions….answered.

What does the enhanced Universal Child Care Benefit (UCCB) mean for my family?

• The enhanced UCCB will benefit every single family with children under the age of 18 in Canada.
• Under these changes, parents will receive $1,920 for each child under 6 and $720 for every child 6 through 17 every year.
• This is not a tax credit, it is money directly into the pockets of hard-working Canadian families each month.

Is my family going to be worse off because of these changes?

• No. If you have children under the age of 18 there is no scenario whereby you will not be better off thanks to these changes.
• Everyone gets more money with the boosted UCCB.

Is the UCCB taxable?

• The UCCB is taxed in the hands of the lower-income spouse.
• Single parents are able to include the UCCB in the income of one of their children.

What are you doing the Canada Child Tax Benefit (CCTB)?

• The CCTB has not been changed at all.
• Parents who are eligible for this benefit will continue to receive it, alongside the enhanced UCCB.

Why are you eliminating the Child Tax Credit?

• The Government has merged the Child Tax Credit with the enhanced UCCB.
• Every single family with children under the age of 18 is better off because of this change.
• The Child Tax Credit provided non-refundable tax relief of up to $338 per child per year and only went to families that paid federal income tax.
o This means that low-income families with no taxable income did not benefit from the Child Tax Credit.
• The Child Tax Credit was not a “2255 non-taxable benefit”. It was a tax credit, so families would receive 15% of $2255 or $338.
• Everyone gets more money with the boosted UCCB.

Are you eliminating the ability to claim an eligible dependent?

• No. Parents who are eligible to claim this amount can continue to do so.