The Government of Canada has introduced changes to the UCCB (Universal Child Care Benefit) as of January 2015. These changes have:
- increased the annual limit to $1,920 ($160 per month) from $1,200 ($100 per month) for each child under the age of six
- expanded to provide $720 annually ($60/month) for each child aged six through 17
- the benefit is taxable
- child amount credit is eliminated
The first enhanced payment will be issued in July 2015 and will include any retroactive payments for the period of January to June 2015. As you can see, these changes will also affect your taxes.
This may be a good time to discuss RESPs and the expense of post-secondary education. Additionally, you may also be able to increase the value of your RESP investment through the Canada education savings grant (CESG) for eligible contributions.
[The basic Canada education savings grant (CESG) is a 20% grant paid by the federal government on the first $2,500 contributed to a RESP each year for a total of $500 (lifetime limit of $7,200). You may also qualify for additional CESG assistance – up to an extra 20% on top of the basic grant.]
Please contact me with your questions. We can set up a plan of action, go over these changes and what they mean to you.