Comments on: Universal Child Care Benefit (UCCB)

By: Doctor Stock

Doctor Stock — Mon, 28 Dec 2009 03:42:03 +0000

I wish they’d extend the age to 12 myself… but it’s better than nothing

By: Mike

Mike — Sun, 17 May 2009 20:47:51 +0000

Thanks Kate – I wasn’t aware you could opt out – I wonder how many people “take advantage” of that option?

By: kate

kate — Sun, 17 May 2009 18:18:39 +0000

Another thing to note is that you can opt out of the UCCB if you think it is such a waste. For most of us it is a help (I make no money as a stay at home mum, so we do get to keep it all) and while it isn’t much, it does offset our monthly ICBC payment.

“If you do not want to receive the UCCB, please call us at 1-800-387-1193.”
http://www.cra-arc.gc.ca/bnfts/uccb-puge/fq_pymnts-eng.html#q5

By: Four Pillars

Four Pillars — Mon, 23 Mar 2009 17:44:34 +0000

Harvey, you’re not making much sense…

Yes, the UCCB is taxable but you still get to keep most of it. Hardly a waste.

Secondly – in your example you said you paid $1650 in taxes on $2400 of income which works out to 68.75%. If this is the case then you need a new accountant.

The highest marginal tax rate is I think around 46% which means you would have paid $1104 in taxes leaving you with $1300 – again, hardly a waste.

Last thing to keep in mind is that the lower earning spouse can claim the UCCB – this doesn’t help if both spouses are in the highest tax bracket but that is not the case for the vast majority of Canadians.

By: harvwallbanger

harvwallbanger — Mon, 23 Mar 2009 17:14:02 +0000

Canada’s Universal Child Care Benefit is a WASTE!!

If your a two income family and both make $40000 or over, you end up giving most of the money back when you file for your income tax return in the spring.

We have two kids, so we received $2400 for the year. Since the UCCB is considered taxable income, you haven’t paid any tax on this money. So at tax time, we ended up giving $1650 of it back.

The Federal government should pro rate it based on your income and give you what you qualify for, so you don’t have to worry about giving a big chunk of it back during income tax season.

By: Mr. Cheap

Mr. Cheap — Wed, 25 Jun 2008 17:55:30 +0000

Michelle,

Good point! I’m glad you’ll get the backpay.

By: Michelle S

Michelle S — Wed, 25 Jun 2008 17:47:14 +0000

Just came across your blog, very informative. One thing about the UCCB is that you have to file your taxes to receive it, duh. After having our first we applied and got the $100 for about 6 months and didn’t even notice that it stoped coming. We got delayed filing that year (never knew rasing a kid would be so time consuming) anyways 10 months later the accountant told us that you don’t receive UCCB unless you file your return, opps. They assured us that the government would backpay us up to about 18mos. And yesterday I did see the deposit in my account, better late then never.

By: Hamcake

Hamcake — Mon, 09 Jun 2008 21:38:49 +0000

So, it basically adds 1,200 onto your taxable income?

By: Kyle

Kyle — Mon, 09 Jun 2008 14:53:45 +0000

So what you’re saying is, if I have a kid I need to move to Canada. That would probably give me an angle on healthcare too, if I were ever to lose my insurance.

By: Personal Tax & Financial Planning

Personal Tax & Financial Planning — Mon, 09 Jun 2008 13:50:33 +0000

It’s not “really” free money! You’re tax dollars are funding the UCCB. The same argument goes for the “free healthcare” argument as well.

Nonetheless, I certainly don’t shy away from receiving the benefits (I have three kids) but I refer to it was my portion of Canada’s redistribution of taxes.