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Child Care Benefits: Spousal Amount, UCCB, and CCTB!

Some examples of child care benefits include the spousal amount, uccb, and cctb.  Last week, I answered a reader question regarding whether it was better financially for one spouse to stay at home with the kids, or for both parents to be working.

From within the answer that I put together, I mentioned the Spousal Amount, Day Care Expenses, Universal Child Care Benefit (UCCB), and the Canada Child Tax Benefit (CCTB). I didn’t get to explain these terms in any great detail, so for you new or soon to be parents, this may be the article for you!

Spousal Amount

  • The spousal amount is a tax credit that can be transferred to the higher income spouse providing that the low income spouse has very little or no income.
  • The maximum credit for 2006 is $7505 (net income < $751) but decreases as the amount of net income for the low income earner increases. When the low income spouse reaches $8,256 in net income, the spousal amount is eliminated.
  • This taxtips.ca calculator will account for the spousal amount.

Day Care Expenses

  • In the case that you and your spouse decide to go back to work and need to put your child in day care, it can get expensive. The bright side is that up to $7,000/child/year can be claimed under the lower income spouse.

Universal Child Care Benefit (UCCB)

  • The UCCB is the one of the Tory promises of universal child care. This taxable program provides $100/month/child for families with children under the age of 6.
  • UCCB income can be taxed in the hands of the lower income earner.

Canada Child Tax Benefit (CCTB)

  • CCTB is a tax free monthly payment to parents with children under the age of 18.
  • This amount received depends on the number of dependents, the province, the family net income and marital status.
  • You can use this nifty CCTB Calculator to figure out your situation.

NEW! Effective July 1, 2007, $2000 / child (under 18)/ family can be claimed.

  • This is a FEDERAL tax credit, meaning you get $2000 x 15.5% = $310/child/family. I haven’t’ seen any mention of the provinces matching this credit, if you hear anything, let me know!

I hope this helps some new parents out there, I know that I have learned a lot from the research. I guess it’s time to have kids now? :)

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FrugalTrader About the author: FrugalTrader is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.

{ 7 comments… add one }

  • Wagner October 18, 2013, 4:12 am

    Ok so any idea why I get 150 dollars for the last 2 years for 2 kids on my UCCB ???

  • Wagner October 18, 2013, 4:15 am

    Ok so any idea why I get 150 dollars for the last 2 years for 2 kids on my UCCB ?

  • FrugalTrader FrugalTrader October 18, 2013, 8:52 am

    @Wagner, how old are your kids? UCCB starts to taper once they reach 6.

  • Wagner October 18, 2013, 9:49 am

    @FrugalTrader They are 3 and 1 and the youngest one its going to be 2 on feb 27 in the next year and my oldest just turn 3 Oct 7.

  • Wagner October 18, 2013, 9:51 am

    @Frugaltrader
    Born 1: October 7 2010
    2: February 27 2012

    So 3 and 1 years old

  • Lucian April 15, 2014, 8:27 am

    Do you know if daycare expenses can be claimed by the higher income if the spouse is going to a full time PhD program?
    Thanks,
    Lucian

  • Soro April 16, 2014, 8:32 pm

    @Lucian
    Yes, take a look at form T778 in your tax software and enter the number of weeks/months that the lower-income spouse was studying part/full-time at an educational institution.

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