The Universal Child Care Benefit (UCCB) was replaced with the new Canada Child Benefit (CCB) effective July 2016. If you were eligible for the UCCB for the months (or years) before July 1, 2016, and you applied for the benefit, the Canada Revenue Agency (CRA) would make a lump-sum UCCB payment to you. You can find this amount in box 10 of your RC62 slip.
If you made a repayment of benefits for previous years, this amount is shown on box 12 of your RC62 slip.
Tax Tip: Because the UCCB is a taxable benefit (must be reported as income), it must be claimed by the spouse or partner with the lower net income.
What is the UCCB?
The Universal Child Care Benefit was a taxable benefit designed to help families with children under the age of 18 to manage the cost(s) of raising a child. The benefit amount you received, depended on the age of your child:
- $160 per month for each child under the age of six or
- $60 per month for each child aged 6 to 17
In order to have received the UCCB, you must have met the following eligibility requirements:
- You lived with the child
- You were the person who was primarily responsible for the child’s care
- You must be a resident of Canada and
- You and your spouse or common-law partner must be a:
- Canadian citizen
- Permanent resident
- Protected person, as defined by the Immigration and Refugee Protection Act or
- Temporary resident, as defined by the Immigration and Refugee Protection Act
What does it mean to be primarily responsible?
According to the CRA, a person is considered primarily responsible if they’re responsible for such things as supervising a child’s daily activities and needs, ensure medical requirements are met, and arranging for child care when necessary. Generally, the CRA considers this person to be the female parent who lives with the child, but it could also be the father, a grandparent, or a guardian.
Yes. If you indicated that your marital status in 2018 was single, separated, divorced, or widowed, you might want to consider transferring this amount to the child you’re claiming as an eligible dependant so that the benefit amount will be taxed at a lower rate than your own.
For example, let’s say that you received a lump sum of $1,200 for UCCB and your personal tax rate is 20.5%. Your tax liability for this amount will be $246 ($1,200 x 20.5% = $246). If you transferred this amount to your eligible dependant, the tax liability on this amount would be $180 because it’s being taxed at your child’s lower tax rate of 15% ($1,200 x 15% = $180). A difference of $66 might not sound like much, but it’s money that will stay in your pocket.
Where do I enter this?
Follow these steps in H&R Block’s 2018 tax software:
- Under the QUICK ENTRY tab, click the QUICK SLIP icon. You'll find yourself here:
- Type RC62 in the search field and either click the highlighted selection or press Enter to continue.
- When you arrive at the page for your Universal child care benefit statement, enter your information into the tax software.