Universal Child Care Benefit and Child Care Expense Deduction

The Universal Child Care Benefit (UCCB) was designed to offer families more freedom in their child care choices. Whether you enroll your child in a daycare program or not, the UCCB provides monthly payments of $160 for children under six and $60 for children aged six to 17. The payments are taxable to the spouse with the lower net income. Single parents can designate them to be the income of the child for whom they claim the amount for an eligible dependent.

Who is eligible for the Universal Child Care Benefit?

To receive the UCCB, you must live with the child and be responsible for their care and upbringing. The Canada Revenue Agency usually considers this person to be the female parent, but you could be the father, a grandparent or a guardian.

You must be a resident of Canada and your spouse or common-law partner must be a Canadian citizen, permanent resident, protected person or temporary resident.

How do I apply for the UCCB?

Ideally, you will apply for the UCCB after the birth of your child or after they start to live with you. You can enrol for the UCCB through the Canada child benefits application (RC66). After you have filled out the form, send it to your tax centre. You will hear back from the Canada Revenue Agency within 80 days.

The Child Care Expense Deduction

In addition to the enhanced UCCB, the Child Care Expense Deduction will increase by $1,000. This means families can claim up to $8,000 for children under seven, $5,000 for children aged seven through 16, and $11,000 for children who are eligible for the Disability Tax Credit.

If you pay others to care for your child so that you can attend your job, go to school, operate a business or conduct research supported by a grant, you might be able to claim the expenses.