Tax Tip 31 of 32, the Universal Child Care Benefit (UCCB) program
Financial help for families with the universal childcare benefit
Financial help and income-splitting opportunities are on the way to families who apply for the Universal Child Care Benefit (UCCB) program.
According to Chartered Accountant Karen Slezak, Tax Partner, Soberman LLP in Toronto, this program allows families to receive up to $1,200 per year for each child under the age of six, paid in installments of $100 per month, per child.
The application form is available on the Canada Revenue agency (CRA) website at [url=http://www.cra-arc.gc.ca/bnfts/uccb-puge/menu-eng.html]http://www.cra-arc.gc.ca/bnfts/uccb-puge/menu-eng.html[/url].
Slezak notes that the UCCB payments that your family receives will be taxable to the lower income spouse.
“There is an income-splitting opportunity. If you decide to invest the UCCB payments in the name of your child, any income earned on the investment will be taxable to the child – not you. If the child’s taxable income is below $8,681 in 2008, the income will not be subject to federal or Ontario tax.”
Brought to you by the Institute of Chartered Accountants of Ontario
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The Institute of Chartered Accountants of Ontario is the qualifying and regulatory body of Ontario’s 33,000 Chartered Accountants and 5,000 CA students. Since 1879, the Institute has protected the public interest through the CA profession’s high standards of qualification and the enforcement of its rules of professional conduct. The Institute works in partnership with the other provincial Institutes of Chartered Accountants and the Canadian Institute of Chartered Accountants to provide national standards and programs that are used as examples around the world. </em>
