July 8, 2015
What is the enhanced UCCB?
The Universal Canada Child Benefit (UCCB) is financial support offered by the Government of Canada to families with children. Since 2006, the UCCB allowed parents with children under 6 years old to receive $100/month per child.
Changes to the UCCB:
- The monthly amount paid to families with children under 6 years old will be increased to $160/month (annual limit set at $1,920 per child)
- The government is expanding the UCCB to include parents with children aged 6-17 years. These families will receive a monthly amount of $60 (annual limit set at $720).
The first UCCB enhanced payment will be issued on July 20, 2015, and will include any retroactive payments for the period of January to June 2015.
Good to know...
- Income tax will not be withheld at source on UCCB payments.
- The UCCB is a taxable benefit (under both the federal and provincial levels of government), which could increase the tax liability of several Canadian families.
- The UCCB is taxable in the hands of the lower-income spouse.
- The enhanced UCCB will replace the existing Child Tax Credit as of the 2015 taxation year. The Child Tax Credit was a non-refundable tax credit for parents with children under 18 years of age.
What’s your situation?
Are you expecting to receive enhanced UCCB payments? The following chart presents the actual amount you could end up with based on your family’s financial situation.
The above is an assessment carried out by Universitas, based on 2015 tax rates in Quebec and in Canada. Other factors could influence the net annual enhanced amount received.
Put your UCCB payments to good use!
There are several options on how to invest or use your UCCB payments, but most financial experts agree that investing part of the enhanced UCCB in a registered education savings plan (RESP) is a smart move that pays off. This is mostly attributable to the generous grants offered by both levels of government in Quebec, which match 30% to 60%1 of your contributions.
We hope the above clears things up regarding the changes to this family benefit and that this information will help you make a well-advised decision on how to put this money to work.
Have a great summer!
1. Canada Education Savings Grant (CESG) of 20% to 40%. Quebec Education Savings Incentive (QESI) of 10% to 20%.
An executive function disorder is quite common and often confused with an attention deficit hyperactivity disorder (ADD/ADHD). Here are the different signs and specific symptoms of this learning difficulty, as well as some strategies to establish an action plan to help a child deal with this problem.
Written by: Universitas
Categories : FinancesJune 11, 2013