So what does it mean with the new guidelines for the Universal Child care benefit (UCCB)?\u00a0 Well it is\u00a0 a taxable benefit.\u00a0 It was introduced in 2006 originally to help families pay for daycare, but there were no rules as to what the money can be used for.\u00a0 As of this writing the changes that have been made to the UCCB are the following: For children under 6 it is now $160.00 a month.\u00a0 For children 6-17 it is reduced to $60.00 a month. To qualify the child must be living with you and you have custody.\u00a0 There are a few more rules which can be found at this link: http:\/\/www.cra-arc.gc.ca\/uccb\/\u00a0 But generally pretty much everyone with a child under 18 qualifies.<\/p>\n
So it’s taxable what should I do now?\u00a0 That all depends on your financial situation.\u00a0 There are many things you can do.\u00a0 However it all comes down to your financial situation. If you are in a low tax bracket you may not owe much on the benefit.\u00a0 Here is how to make the tax situation better should you be able to:<\/p>\n
First of all very few jobs now days are obtainable with just a grade 12 education.\u00a0 Even if your child is not academic and college or university are not in the books for your child chances are high they will need a post secondary education.\u00a0 There are many trade schools teaching all the trades.\u00a0 From carpentry, plumbing, electrical, and welding just to name a few.\u00a0 Education is expensive and is just getting more expensive.\u00a0 So a good idea is to put the money into an RESP.\u00a0 Or Registered Education Savings Plan. But how can this benefit you.\u00a0 Simple the government will top it up by 20% per year with a $500.00 maximum per year.\u00a0 So if you put at least $2500.00 per year you will get the extra $500.00 per year.\u00a0 Which is more than the tax you would pay on the UCCB.\u00a0 Not to mention that it will be earning interest over the years.\u00a0 If you start an RESP for your child at birth, and for 17 years put at least $2500.00 into an RESP, the government will put in $8500.00 during that time.\u00a0 Pretty good huh? Your child (or you) will have to register for a SIN in order to qualify for this benefit. For more information go to the CRA site: http:\/\/www.cra-arc.gc.ca\/tx\/ndvdls\/tpcs\/resp-reee\/menu-eng.html<\/p>\n
If you happen to be lucky enough to be higher income you may want to donate to a registered charity. \u00a0 Make sure the charity is a registered Canadian charity before donating.\u00a0 Many people like to research the charities they donate to, as they like to see how much of their donation is actually being put to good use.\u00a0 Again the CRA has a website for this:\u00a0 http:\/\/www.cra-arc.gc.ca\/chrts-gvng\/lstngs\/menu-eng.html\u00a0 You can check out the charity, look at reports on their revenue and what it was used for.\u00a0 All charitable donations to a registered charity are tax deductible.\u00a0 So many people have causes they wish to support and charities are a good way to do that.<\/p>\n","protected":false},"excerpt":{"rendered":"
So what does it mean with the new guidelines for the Universal Child care benefit (UCCB)?\u00a0 Well it is\u00a0 a taxable benefit.\u00a0 It was introduced in 2006 originally to help families pay for daycare, but there were no rules as to what the money can be used for.\u00a0 As of this writing the changes that […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9521","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n