Canadian residents with children 17 years-old and younger are getting a big boost to their bank accounts this week. As promised, The Government of Canada has started paying out the increased Universal Child Care Benefit, or UCCB.
The payments have been in effect since January 1st, 2015, but families are only now starting to receive the money. For families of kids 0 to 5 years-old, the amount has increased from $100 to $160 a month. For families of kids 6 to 17 years-old, there’s a new benefit of $60 per child a month.
On July 20th the retroactive payments were sent out, and families already receiving the $100 benefit for children under 5 will receive $520 in a lump sum payment for the difference. Families of kids 6 to 17 received a $420 lump sum payment. That’s the $60 for the last six months each family has not received (for each child) as well as the new payment for the month of July. If you haven’t received the increased UCCB yet, you probably didn’t register in time. You can still do so by visiting the CRA website, “How Can You Benefit.” The payment will take 80 days to arrive but you won’t lose out on any of the 2015 UCCB payments.
Parents should be aware that this is a taxable benefit. So, next year when you file your tax return, the total amount of UCCB credits your family received will be added to the income of the lower earning spouse. That means you will pay income tax on the money. If you’re worried about a bill to the CRA during tax time, save part of the UCCB money your child receives to prepare for that circumstance.
The UCCB retroactive payments are significant; for bigger families this can mean $1000s deposited in one day! Even for a one child family it’s at least $420. There are some great ways to use that money, and if you're not sure how to earmark it, I have you covered here with Dos and Don’ts of how the money should be spent.
RELATED: 
Printer-friendly version