Replacement of the Child Tax Credit with the enhanced Universal Child Care Benefit

Notice to the reader

This measure has received Royal Assent.

The Child Tax Credit will be replaced by the enhanced UCCB for the 2015 and subsequent taxation years. For more information go to Enhanced Universal Child Care Benefit.

What is the Child Tax Credit?

The Child Tax Credit is a non-refundable tax credit for parents of children who are under 18 years of age at the end of the year. A claim is made for the credit by completing line 367 of the Schedule 1, Federal Tax, when you prepare your personal income tax and benefit return.

What has changed for the Child Tax Credit?

The October 30, 2014 announcement included a proposal to replace the Child Tax Credit for 2015 and subsequent taxation years with the enhanced Universal Child Care Benefit.

Will I still be able to claim the Family Caregiver Amount for my child?

There are no proposed changes to the Family Caregiver Amount. If you are otherwise eligible, you will be able to continue to claim the Family Caregiver Amount for a child who is under 18 years of age at the end of the year.

Will the income tax withholdings reflected on my pay cheque be affected as a result of the replacement of the Child Tax Credit with the enhanced UCCB?

If you claimed the Child amount on a previous TD1 form, your tax withholdings may be affected. You should complete a new TD and give this completed form to your employer or payer. Depending on your circumstances, there may be a reduction to your net pay each pay period. However, remember that the Child Tax Credit is being replaced by the enhanced Universal Child Care Benefit.

Will Form TD1, Personal Tax Credits Return, be amended to reflect the replacement of the Child Tax Credit by the enhanced UCCB?

The 2015 version of Form TD1 has been revised to remove the Child amount from section 2 of the form, because the Child Tax Credit has been replaced by the enhanced Universal Child Care Benefit.

Section 2 of Form TD1 now contains only the Family caregiver amount for an infirm child under age 18, as this non-refundable tax credit has not been replaced.

Will my Canada Child Tax Benefit change as a result of the enhancements to UCCB?

The Canada Child Tax Benefit, a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18, has not changed.

Where can I get more information about the proposed replacement of the Child Tax Credit with the enhanced UCCB?

The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its web pages often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please consult the Department of Finance Canada's announcement for further details.

Date modified: