The amount in box 10 of the RC62 slip includes the lump sum payment of the UCCB that the taxpayer received during the year, even if this payment covers prior years.
Special calculation: Note that the CRA will not amend prior taxation years covered to include this income. However, if the UCCB lump sum payment is $300 or more, the CRA will calculate the tax payable as if the taxpayer had received in each of the prior years covered, if this calculation is more advantageous for the taxpayer. This special calculation does not apply when the taxpayer allocated the lump sum payment to a dependant and entered the payment amount on line 11701.
Inclusion to the total benefit paid (RC62 slip, box 10)
The UCCB is taxable on line 11700 in the return of the taxpayer or the common-law partner with the lower net income, regardless of which one received the benefits. When the taxpayer’s and the spouse’s returns are in the same file, Personal Taxprep is able to determine who, between the taxpayer and the spouse, must report the benefit on line 11700 of his or her return.
The net income for the purpose of allocating the UCCB to the taxpayer or the spouse is the net income that would have been calculated on line 23600, if the social assistance benefits or the provincial or federal supplement in box 11 of the T5007 slip, Statement of benefits, and if the deduction on line 21400 of the return for child care expenses would not have been taken into account.
If the taxpayer is a single parent on December 31, they can choose one of the two following options:
- include in their return the UCCB amounts they received;
- include all UCCB amounts received in the income of the dependant for whom they are claiming the amount for an eligible dependant on line 30400 (if the taxpayer is not claiming the amount for an eligible dependant on line 30400, they can choose to include all UCCB amounts they received in the income of one of the children for whom the UCCB was paid.
The UCCB is not taken into account in the income calculation used to determine the following amounts:
- GST/HST credit;
- Canada Child Benefit and related provincial or territorial benefits;
- Social benefits repayment (line 23500 of the T1 return);
- Refundable medical expense supplement (line 45200 of the T1 return);
- Working income tax benefit (line 45300 of the T1 return);
- Newfoundland and Labrador low-income tax reduction (NL428);
- Prince Edward Island low-income tax reduction (PE428);
- Nova Scotia low-income tax reduction (NS428);
- New Brunswick low-income tax reduction (NB428);
- Manitoba personal tax credit, education property and school tax credits for homeowners (MB479);
- British Columbia sales tax credit (BC479);
- Yukon low-income family tax credit (YT428);
- Ontario Trillium Benefit (ON-BEN);
- Low-income individuals and families tax credit (ON428-A).
Repayment of previous-year benefits deduction (RC62 slip, box 12)
The refund amount must be deducted in the income calculation of the taxpayer that included the benefit in his or her income in the year the benefit was received.
Data on the RC62 slip can be entered in the taxpayer’s or the spouse’s RC62 screen, regardless of which one received or repaid the benefits. In the case of reconstituted families, it is possible that the couple received two RC62 slips. If applicable, one of the slips must be entered on the taxpayer’s RC62 screen and the other on the spouse’s RC62 screen.
Enter, in box 12 of the RC62 slip, the Universal child care benefit
repayment amount that must be deducted from the income calculation of
the taxpayer who had included this benefit when calculating his/her income
the year the benefit was paid. If applicable, determine who, between the
taxpayer and the spouse or another taxpayer must deduct the repayment
amount on line 21300 of the T1 return