For the past few months, the changes to the Universal Child Care Benefit (UCCB) has continuously unroll, while the changes in the UCCB is effective January 2015, the Canada Revenue Agency (CRA) will only be in the position to make increased payment until the proposed changes has received Royal Assent and the necessary changes are introduced in CRA’s processing systems, thus, first increased payment will be made in July 2015, which also include any increased benefit applicable from January to June of 2015. Until July 2015, regular UCCB payments will continue to apply.
UCCB was introduced to Canadian families in 2006, it is designed to help with the cost of raising children through direct financial support. Under the current legislation, UCCB is a fix amount of $100 monthly payment to each child under age of 6. Since this benefit is not income based, a family will receive it regardless of the amount of income they claimed on their taxes for as long as they have a qualified dependent child.
Starting 2015, the government is increasing and expanding the UCCB, a family will received up to $1,920 per year for each child under the age of 6, and introducing a new benefit of up to $720 per year for children aged 6 through 17.
So what should a family with children under 6 and children with aged 6 to 17 expect to receive? For example, you are a parent of a 4 year-old and a 9-year old.
- The enhanced UCCB increased effective January 2015, you are entitled to receive a benefit of up to $160 per month for your 4 year-old and $100 per month for your 9-year old.
- In July 2015, you will receive the first enhanced payment which includes retroactive payments for January to June 2015:
For your 4-year old = 6 X $60 = $360 + $160 = $520
For the 9-year old = 6 X $60 = $360 + $60 = $420
- From August 2015, forward you will receive $220. Which is $160 for your 4 year old until his 6th birthday month and $60 for your 9 year-old until his 18th birthday month.
There are few scenarios enumerated under the Enhanced Universal Child Care Benefit pages in the CRA website that may help you further understand how these changes will affect your family.
Now that you know how much you should be receiving in July 2015, make sure that you are eligible and ensure that you will actually receive it in July 20th.
- If you are already receiving UCCB will automatically receive the updated amount of this benefit. You do not need to apply for the UCCB if you are already receiving CCTB for your children or you are eligible to receive CCTB but you do not because your family income is too high.
- If your personal information has not changed, since you received the CCTB or UCCB, you do not need to reapply. You will automatically receive the enhanced UCCB based on the information that Canada Revenue Agency (CRA) has on file.
- If your personal information has changed since you received the CCTB or UCCB, you should contact the CRA to update your records to ensure you receive the correct UCCB payment.
You must also meet the following conditions to receive the CCTB and UCCB:
- You must live with the child who is under the age of 18.
- You must be the person who is primarily responsible for the child’s care and upbringing. If there is a female parent who lives with the child, the CRA usually considers her to be this person. However, it could be the father, a grandparent, or a guardian.
- You must be a resident of Canada.
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 became a resident of Canada.
To apply for UCCB for a child in your care under the age of 18 you may download the application form from CRA website.
Sources:
Universal Child Care Plan. Retrieved June 10, 2015.
Universal Child Care Benefit. Retrieved June 10, 2015.
Universal child care benefit (UCCB). Retrieved June 10, 2015.
