FAQs Tax Implications

I am the recipient of the Universal Child Care Benefit. Is this taxable income?

If one parent has sole custody of the child(ren), then the Universal Child Care Benefit (UCCB) will be paid to that parent. Under shared custody, you can apply to split the payment equally between the two of you.

As a general rule, the Canada Revenue Agency (CRA) considers payments received under the Universal Child Care Benefit (UCCB) to be taxable income. If you were a single parent on December 31, 2017, you may choose one of the following options:

  • Report the UCCB income as income of an eligible dependant;
  • If there is no claim made by an eligible dependant, then you can include the entire UCCB amount in the income a child for whom you received the UCCB; or
  • Report the entire UCCB in your own income.

Please note the CRA does not include UCCB income in the calculation of GST/HST credit, Canada child benefit (CCB) and any related payments.

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About the author

Russell Alexander

Russell Alexander is the Founder & Senior Partner of Russell Alexander Collaborative Family Lawyers.