UNIVERSAL CHILD CARE BENEFIT: Explained

child's hands playing with a pile of coins

Newly expecting, experienced parent or just curious– you may have questions about the Universal Child Care Benefit (UCCB).  First things first, just what is the benefit and who does it affect? Canada Revenue Agency (CRA) defines Universal Child Care Benefit as a taxable monthly payment “designed to help all Canadian families with children under 18 as they try to balance work and family life.”

 

AM I ELIGIBLE TO APPLY FOR THE UNIVERSAL CHILD CARE BENEFIT (UCCB)?

From CRA’s Frequently Asked Questions–

“To receive the UCCB, all the following conditions must be met.

  1. You must live with the child, and the child must be under the age of 6;
  2. You must be the person who is primarily responsible for the care and upbringing of the child;
  3. You must be a resident of Canada;
  4. You or your spouse or common-law partner must be:
    • Canadian citizen;
    • ‘permanent resident’;
    • ‘protected person’; or
    • ‘temporary resident.’”

*There are exceptions to these conditions– for more information, refer to the CRA’s regulations of contact your Liu & Associates professional.

 

WHEN SHOULD I APPLY FOR THE UCCB?

From CRA’s Frequently Asked Questions–

“Generally, you should apply for the UCCB as soon as possible after:

  • Your child is born;
  • A child starts to live with you; or
  • You become a resident of Canada.”

*There are exceptions to these conditions– for more information, refer to the CRA’s regulations of contact your Liu & Associates professional.

 

HOW DO I APPLY FOR THE UCCB?

You or your accountant should fill out the required forms for application and submit them to CRA. Once submitted to your regional tax services centre, CRA attempts to advise you of all eligibility and entitlements to the UCCB (as well as the Canada Child Tax Benefit). Incomplete applications or missing documents can delay your approval, so follow CRA regulations to the letter– or take the pressure off and have an accounting professional at Liu & Associates handle your finances and complicated family accounting.

As recently as January 1, 2015– the Government of Canada has instituted increases in UCCB amounts. If you have any questions about this increase, contact CRA or your Liu & Associates accounting professional.