Single Parents with Children Under 6 - The UCCB can be claimed on your child

One of the most frequently overlooked tax savings available to a Single Parent for the past few years is the ability to claim the UCCB Benefit ($100 per month for each child under 6) as the income of an eligible child rather than including it in their own income.

If the parent is claiming an Amount for an Eligible Dependant (claiming the Child for additional credits instead of a spouse), the UCCB income has to be used for that specific child and their credit reduced by the income.

If the parent is not claiming the Amount for Eligible Dependant, the income can be claimed as the income of the child for whom you are receiving the benefit instead.

The child does NOT need to a file a tax return to take advantage of this option.

Either way, taking advantage of this reduces the taxable income of the parent and in most cases results in some tax savings even if the Amount for Eligible Dependant is reduced. In some provinces it makes more difference than others because of the provincial tax calculations.

For example, with a single parent in BC with a taxable income of $60,000 it can mean a savings of an approximately $180.

To do this, instead of reporting the UCCB on line 117 of your tax return, report it on line 185.If you haven't been taking advantage of this, it's not too late. You can go back and adjust your tax returns for the last 10 years using form T1 Adj.

Feel free to contact us at service@painfreetaxes.ca or 1-844-EZ-TAXES for a free consultation about this or other potential missed credits.