Universal Child Care Benefit: An Update

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The proposed changes to the Universal Child Care Benefit are currently unrolling and now is the time to make sure that you will receive it in July if you are eligible. You may have received a letter in the mail recently or will be receiving one this week which will be seeking to confirm the names and birth dates of the children under the age of eighteen that you have living with you in your care.

IF YOU RECEIVE A LETTER: look closely to be sure that all of your children from birth to 17 years of age are listed. If the information is correct, you do not need to do anything.

If the information is incorrect, you need to respond in writing as soon as possible with the correct information.

If the information is not complete (e.g. a child is missing) you will need to apply for that child. You can do this online at www.cra-arc.gc.ca/myaccount

IF YOU DID NOT RECEIVE A LETTER: you may need to apply for UCCB or update your information.

  • If you currently only have children under the age of 6 and you are currently receiving UCCB monthly for all of your children, you do not need to do anything
  • If you currently only have children under the age of 6 and you have never applied for UCCB or CCTB, you will need to apply for it now in order to receive the increase
  • If you currently have children who are ages 6 to 15 for whom you have previously received the UCCB for, you do not need to do anything
  • If you currently have children who are over the age of 14 who have never received UCCB OR CCTB, you will need to apply for it now in order to receive the enhanced benefit
  • If you currently have children who are over the age of 14 who have never received UCCB, but for whom you receive CCTB, you do not need to do anything
  • If your situation has changed and you now have new children over the age of 6 that are in your care or no longer in your care (e.g. through marriage, divorce or adoption) you will need to update your information with the CRA

For more information on who will need to apply and how to apply, see HERE.

WHAT YOU WILL RECEIVE

In July 2015, the Universal Child Care Benefit will increase by $60/month for all children ages birth to their 18th birthday. You will receive a retroactive payment for January to June of 2015, plus the payment for July 2015.

Children 0 to 5: 6 x $60 = $360 + $160 = $520

Children 6 to 17: 6 x $60 = $360 + $60 = $420

From August 2015 forward, you will receive:

$160 per month for children from birth to their 6th birthday month.

$60 per month for children from 6 years old to their 18th birthday month.

 

 

UPDATE – UCCB and Tax Changes

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Last week we posted about the upcoming changes to the Universal Child Care Benefit. This raised a lot of discussion regarding how these changes will effect families and their taxes as well as some confusion about a few details. We hope that this update will clear some of that up!

THE UCCB THEN AND NOW

As mentioned, the UCCB will be increasing by $60 per month for all children from birth to 17 years,11 months. This means that children who are 0 to 5 years, 11 months will receive $160 per month and children 6 years to 17 years, 11 months will receive $60 per month.

The change will not come into effect until July 2015 when parents will retroactively receive the updated amount of money for the year. This means that parents will receive per child in the given age range, this amount per month this year:

January 2015: $100 (0-5), $0 (6-17)

February 2015: $100 (0-5), $0 (6-17)

March 2015: $100 (0-5), $0 (6-17)

April 2015: $100 (0-5), $0 (6-17)

May 2015: $100 (0-5), $0 (6-17)

June 2015: $100 (0-5), $0 (6-17)

July 2015: $520 (0-5), $420 (6-17)

August 2015: $160 (0-5), $60 (6-17)

September 2015: $160 (0-5), $60 (6-17)

October 2015: $160 (0-5), $60 (6-17)

November 2015: $160 (0-5), $60 (6-17)

December 2015: $160 (0-5), $60 (6-17)

Since it was introduced in 2006, it has been necessary to claim UCCB on your taxes as income and this will not change with the increase. 

The UCCB is NOT income based. Families will receive it regardless of the amount of income claimed on their taxes.

Those who are already receiving UCCB will automatically receive the update. You do not need to apply for the UCCB if you are already receiving CCTB for your children or you are eligible to receive CTTB but you do not because your family income is too high.

CANADA CHILD TAX BENEFIT

The tax-free monthly CCTB payment that many families receive to help with the costs of raising children under the age of 18 years old will not change. The CCTB is based on how many children you have and your family income. For more information, see HERE.

CHILD TAX CREDIT

The CTC was a non-refundable tax credit for parents of children under the age of 18. This will be cancelled for the 2015 tax year, but can still be claimed on your 2014 taxes. 

 

 

Changes to Universal Child Care Benefit

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If you have children under the age of 18, the Universal Child Care Benefit is something you are now entitled to as of January 2015. Before you go scrambling to your bank statement for this month, you should know that although the tab starts collecting this month, the cheque won’t appear until July.

Here is the breakdown of how much you can expect to receive and when:

Children ages 0 to 5 years, 11 months

Since 2006, the Federal government has been providing families with $100 per month per child in this age range. As of January 2015, families will receive $160 per month per child currently in this age range. However, the first installment will not arrive in your mailbox or bank account until July 2015. You will receive payment for January to July in one lump sum, followed by the monthly payments of $160 until your child’s 6th birthday.

PREVIOUSLY: $100/month = $1200/year  Continue reading