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.
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.