Universal child care benefit is taxable but Poilievre says families won’t receive less

what is a taxable benefit


Employment Minister Pierre Poilievre responds to a question during question period in the House of Commons on Parliament Hill in Ottawa on Friday, June 12, 2015.

FREDERICTON – The Federal Employment and Social Development minister says every family receiving the Universal Child Care Benefit will get more money than they did before changes came into effect in January.

Pierre Poilievre is responding to comments and online posts from analysts in recent days who say the elimination of the Child Tax Credit announced last October and the fact the UCCB is taxable will leave very little extra money in the hands of families.

Speaking in Fredericton, Poilievre says the increase

in the benefit is so large that it compensates for the other changes.

For each child under the age of six, parents are getting an extra $60 per month, and they’ll now get $60 per month for children between six and 17 years old.

Fred O’Riordan, a tax expert with Ernst and Young LLP says after taxes and the elimination of the tax credit, parents in the middle to high tax brackets will be able to keep about $15 of that increase per month.

He says people should be prepared to have to pay the taxes on the UCCB come tax time in April.

© The Canadian Press, 2015

Source: globalnews.ca

Category: Credit

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