The universal child care benefit is a taxable benefit

The universal child care benefit (UCCB) is a taxable benefit.  If you, or your spouse or common-law partner, receive the UCCB, you must report it on Line 117 of your income tax and benefit return.  Refer to question 3 below for options of reporting the UCCB.

  1. How will the Canada Revenue Agency (CRA) tell me about the UCCB amount that I need to report on my income tax and benefit return?
  2. RC62, universal child care benefit statement?
  3. What are the options of reporting the UCCB income?
  4. Is the UCCB included as part of my adjusted family net income when calculating my other benefits such as the Canada child tax benefit (CCTB) or the goods and services tax/harmonized sales tax (GST/HST) credit?
  5. Do UCCB payments affect the amount of social assistance I receive from a province or territory?
  6. Can taxes be withheld at source on my UCCB payments?
  7. Do I have to file an income tax and benefit return to receive the UCCB? 

1. How will the Canada Revenue Agency (CRA) tell me about the UCCB amount that I need to report on my income tax and benefit return?

We issue the UCCB payments for Employment and Social Development Canada and will provide UCCB recipients with RC62, universal child care benefit statement.

2. When will the CRA provide RC62, universal child care benefit statement?

Each year by the end of February, on behalf of Employment and Social Development Canada, the CRA will issue to benefit recipients a RC62, universal child care benefit statement.

3. What are the options of reporting the UCCB income?

If you had a spouse or common-law partner on December 31, 2014, the spouse with the lower net income must report the UCCB. Enter on line 117, the amount shown in box 10 of the RC62 slip.

If you were a single parent on December 31, 2014, you can choose one of the following options:

  • include all UCCB amounts you received in 2014 in the income of the dependant for whom the amount for an eligible dependant (line 305 of Schedule 1) is being claimed. If there is no claim for an eligible dependant, you can choose to include all UCCB amounts in the income of a child for whom the UCCB was received. If you choose this option, enter on line 185, located below and to the left of line 117, the amount shown in box 10 of the RC62 slip (do not enter the amount on line 117); or
  • report all UCCB amounts you received in 2014 in your own income. If you choose this option, enter on line 117 the amount shown in box 10 of the RC62 slip (do not enter the amount on line 185).

4. Is the UCCB included as part of my adjusted family net income when calculating my other benefits such as the Canada child tax benefit (CCTB) or the goods and services tax/harmonized sales tax (GST/HST) credit?

In order to maximize the benefits payable to low and modest income earners, income received from the UCCB is not included as part of your adjusted family net income when calculating the CCTB or the GST/HST credit. However, any repayments of the UCCB will be included as part of your adjusted family net income.

5. Do UCCB payments affect the amount of social assistance I receive from a province or territory?

Each province and territory establishes their own rules regarding the clawback of social assistance payments. You need to contact the applicable provincial/territorial organization to determine if or how the UCCB affects your social assistance payments.

6. Can taxes be withheld at source on my UCCB payments?

Income tax will not be withheld from UCCB payments. You may want to increase the amount of tax withheld at source from your other sources of income to compensate. To find out how, please contact the CRA at 1-800-959-8281.

7. Do I have to file an income tax and benefit return to receive the UCCB?

No, you do not have to file a return to receive the UCCB. You only need to file an Application for Canada child benefits or you can also use the Apply for child benefits online service on My Account. However, to receive the Canada child tax benefit, you and your spouse or common-law partner have to file an income tax and benefit return every year even if you have not received income in the year.

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