The UCCB goes to parents of minor children whether they pay tax or not — but it is also taxable, both federally and provincially. The majority of Canadians live in provinces with higher marginal tax rates than Ontario, and would keep even less. People in British Columbia would keep a few cents more than their Ontario counterparts.
Higher income earners will keep slightly less of the benefit, while people with low incomes will keep more. Overall, Canadian parents should expect to keep less than one-third of the nominal amount of the UCCB, and in many cases less than a quarter.
The government said it waited to introduce the enhanced UCCB and the family tax cut until the budget was balanced. The fact the government claws back some of the UCCB increase reduces the program's impact on the federal budget. But if the economic downturn does push the budget into a small deficit, some may be tempted to point to this week's massive rollout of payments.
On the other hand, the government continues to insist it will bring in a balanced budget, and it has many ways to shuffle the numbers to achieve that outcome — at least on paper. The Conservative government has billed the cheques as a form of stimulus that will fire up consumer spending and confidence. Typically, wealthier people are more likely to save the money or use it to pay down existing debt.
But now the benefit will see a boost and expansion— part of new measures outlined in the federal budget earlier this year. The old UCCB did not provide anything for parents with children aged All payments are retroactive to Jan.
The benefit applies to all Canadians with children, regardless of income or whether that family uses daycare services. You must also live with the child, and be primarily responsible for the child's upbringing. That means a legal guardian or grandparent may qualify. Parents with children under 18 who are currently receiving the Canada Child Tax Benefit CCTB , or those who have even just applied for it, also don't need to apply.
The first payments will be made on July 20, and will include the retroactive payments covering January to June of this year. Subsequent payments will continue on the 20 th of each month. If you did not register for your UCCB payment before May 15, you can expect to hear back about your application within 80 days of it being received by the agency. Your payments will begin on the 20 th of the month following approval of your application, retroactive to Jan.
That first payment would also include retroactive payments going back to the beginning of the year. The CRA is reminding parents of children age , in particular, to sign them up for the program. Those children would have been too old to be registered under the original UCCB when it was introduced in , so they will not be in the CRA system.
The Government of Canada is moving to direct-deposit payments so many parents will see the cheque go right into their bank account. Some families will still receive their cheques in the mail. Yes, the benefit is taxable. So parents should be prepared to eventually report it in their income tax and benefit return.
Timing aside, the government has faced criticism for the policy behind the measure. The benefit would vary based on family income. See Reproduction of information from TaxTips. Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.
For a taxpayer who is a single parent at the end of the year, starting with the tax year, there are 2 options: report all the UCCB income in the taxpayer's own income line of the tax return , or report all the UCCB income in the income of a dependent for whom the eligible dependent line , aka equivalent to spouse is being claimed. In this case, the taxpayer will report the UCCB amount on line , below and to the left of line on the tax return. Line should remain blank. The UCCB amount cannot be split between taxpayers.
Revised: September 14, The browser does not support JavaScript.
0コメント