UCCB - Taxability

1. Is the Universal Child Care Benefit (UCCB) taxable?
2. How will the Canada Revenue Agency (CRA) tell me about the UCCB amount that I need to report on my income tax and benefit return?
3. RC62, Universal Child Care Benefit statement?
4. If applicable, which spouse needs to report UCCB payments on his or her income tax and benefit return?
5. Is the amount of reported UCCB considered when calculating my other benefits such as the Canada Child Tax Benefit (CCTB) or the goods and services tax/harmonized sales tax (GST/HST) credit?
6. Do UCCB payments affect the amount of social assistance I receive from a province or territory?
7. Can taxes be withheld at source on my UCCB payments?
8. Do I have to file an income tax and benefit return to receive the UCCB?

1. Is the Universal Child Care Benefit (UCCB) taxable?

The UCCB is taxable income, and you have to report it as income.

2. How will the Canada Revenue Agency (CRA) tell me about the UCCB amount that I need to report on my income tax and benefit return?

We issue the UCCB payments for Human Resources and Social Development Canada and will provide UCCB recipients with RC62, Universal Child Care Benefit statement.

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3. When will the CRA provide RC62, Universal Child Care Benefit statement?

Each year in early February, on behalf of Human Resources and Social Development Canada, we will issue to benefit recipients RC62, Universal Child Care Benefit statement.

4. If applicable, which spouse or common-law partner needs to report UCCB payments on his or her income tax and benefit return?

In the case of spouses and common-law partners, the Universal Child Care Benefit payments is taxable in the hands of the spouse or common-law partner with the lower net income, regardless of which spouse or common-law partner received the payments.

5. Is the reported UCCB amount considered when calculating my other benefits such as the Canada Child Tax Benefit (CCTB) or the goods and services tax/harmonized sales tax (GST/HST) credit?

The UCCB is not considered when calculating the CCTB or the GST/HST credit, in order to maximize the benefits payable to low and modest income earners.

6. Do UCCB payments affect the amount of social assistance I receive from a province or territory?

Each province and territory establishes their own rules regarding the clawback of social assistance payments. You need to contact the applicable provincial/territorial organization to determine if or how the UCCB affects your social assistance payments.

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7. Can taxes be withheld at source on my UCCB payments?

Income tax will not be withheld from UCCB payments. You may want to increase the amount of tax withheld at source from your other sources of income to compensate. To find out how, please contact us at 1-800-959-8281.

8. Do I have to file an income tax and benefit return to receive the UCCB?

No, you do not have to file a return to receive the UCCB. You only need to file an Application for Canada Child Benefits or you can also use the Apply for child benefits online service on My Account. However, to receive the CCTB, you have to file an income tax and benefit return.