Child Tax, Credits & Deductions, Families

Canada Child Benefit vs the Universal Child Care Benefit

An Overview of the CCB

  • Effective July 2016, the new Canada Child Benefit (CCB) replaced the Canada Child Tax Benefit (CCTB), the National Child Benefit Supplement (NCBS), and the Universal Child Care Benefit (UCCB). 
  • After July 2016, tax payers will no longer receive UCCB, CCTB or NCBS payments, except if they were owed amounts from previous years.
  • The Canada Child Benefit is not taxable, so you do not need to include it on your tax return.

CCB’s Similarities to Previous Child Care Benefit Programs

  • If you’ve previously received UCCB or CCTB benefits and have filed your tax return for the previous tax year (both yours and your spouse’s if applicable), no additional action is required to apply for the Canada Child Benefit (CCB). Eligibility for the new benefit will be determined by your net income listed on your tax return(s) submitted to the Canada Revenue Agency.
  • Parents of children with disabilities (who are eligible for the disability amount) will continue to receive an additional benefit as long as the family net income falls within the limits. The Child Disability Benefit (CDB) begins to be scaled back at the $68,708 family net income point for 2020.
  • For new parents who haven’t yet received any child benefits, the application process for the CCB is described here.
  • Benefit payments will continue to be paid on the 20th of each month. If you share custody of your children, the rules remain the same.

The Two Main Differences in CCB

The CCB is much different from previous benefits programs in two ways:

  1. Income Based: In the past, the UCCB was paid to parents of all minor children regardless of income. Eligibility for the new CCB is based completely on your family’s net income. To find out how much your family will receive, use the Child and Family Benefits calculator.
  2. Non-taxable: Although the CCTB and NCBS have historically been tax-free, the UCCB was a taxable benefit and was paid until June 2016. The new CCB is completely tax-free, meaning the payments are not reported on your tax return or factored into your tax payable calculation. You are required to file an annual tax return to determine your eligibility for the CCB.

Tax Implications

  • Because the new CCB was effective as of July 2016, any UCCB payments received in the first half of 2016 are taxable.
  • An RC62 slip was issued for tax purposes and the figures listed reported on your 2016 tax return.
  • If you received a lump sum payment or back pay for the UCCB after 2016, you will receive an RC62 and must report it in the tax year which you received it.

You or your spouse or common-law partner may have repaid an amount included in your or your spouse’s or common-law partner’s income for a previous year. If this applies to you, see line 21300 for details on reporting this.

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References & Resources