The federal government is sending out what its touting as the largest one-time benefit payment in its history.
It gives parents $160 a month for childcare for kids under the age of six, and $60 a month for children over five but under 18.
And while it’s nice to receive a cheque in the mail, but the Enhanced Universal Child Care Benefit may be “too good to be true” for many families.
Extra UCCB is taxable, and Child Tax Credit is also axed
MNP Regional Tax Leader Am Lidder says not only is the extra payment parents receive today taxable, parents are also losing a tax credit.
That deduction worked out to about $450 dollars per child.
Lidder says amounts vary depending on your tax bracket, but parents may want to hold off before spending their benefit.
“You can’t ask CRA to take tax deduction off of this benefit. Maybe for this year, continue using a limited amount and depending on whatever tax bracket you are, you’ll see the taxes owing at the end of the year, and budget that way on a go forward basis.”
Federal Employment Minister Pierre Poilievre was busy this morning touting the Harper government’s enhanced universal childcare benefit.
The Minister asked people to tweet if they’ve received their benefit, so the Conservatives can make sure the money arrived.
Parents began tweeting back, saying they appreciate the cash and the choice it gives them to raise their kids as they see fit.
Criticism has included people saying they’d rather have the three billion dollars go towards a national childcare program, and also that the benefit is taxable, so it’ll just get clawed back, and even accuse the feds of trying to buy votes.
An analysis by The Canadian Press shows the benefit is most likely to go to voters in ridings where the Conservatives are favoured to win in this fall’s election.
National Revenue Minister Kerry-Lynne Findlay was at a news conference for 1:30pm Monday in North Vancouver to tout the benefits of the enriched program.
- $160 a month for children under six, an increase of $100 per month
- A new payment for six-to 17-year-olds of $60 per month
- Catch-up payments for the first six months, since the change was announced in January
Nearly three billion dollars gets mailed out today to families who signed up for it.
Poilievre ‘s tweets have also received criticism for being transparently promotional.