What is Line 11700 (Previously 117)?

Line 11700, previously line 117, is the designated slot for entering lumpsum amounts you received for the Universal Child Care benefits (UCCB). Universal Child Care Benefits must be included in the T1 annual return. This entry is made on line 11700. To calculate the entry, you will need the RC62 slip, which is sent to all taxpayers that receive UCCB income from the government. Here's a quick overview of everything you need to know about line 11700, UCCB and the special calculations required.

What is UCCB?

UCCB stands for Universal Child Care Benefits, which refers to a taxable monthly payment the Canadian government issues to families with children below 19 years. The UCCB was replaced in 2016, along with CCTB, by the Canada Child Benefit. The two have many similarities and many parents that qualified for the UCCB are eligible to apply for the CCB benefits. Parents of children with disabilities will also continue to receive payments provided their family net income falls within the threshold required to award extra benefits. However, CCB and UCCB have differences as follows:

• CCB is income-based – Before 2016, Universal Child Care benefit was paid to all parents with minor children (under six years of age), regardless of their family net income. On the other hand, eligibility for CCB is based on the net income both parents make. You can use a child and family benefits calculator to determine how much the government will award your family towards Canada Child Benefits.

• CCB is not taxed – While UCCB was a taxable income, child care benefits, such as CCTB and NCBS, have historically been exempt from tax. The UCCB also became tax-free in June 2016 after the CCB replaced it. You don't have to report the CCB benefits anywhere on your annual return, as it is not required for your tax payable calculation. Nonetheless, you must file your annual return to determine eligibility for Canada Child Benefit.

Prior to the CCB, taxpayers reported all UCCB benefits on line 117 of the T1 annual return. The CRA changed line 117 (Universal Child Care Benefit) to line 11700 in 2019, so you should ensure you are using the right form for the tax years you are filling for.

How Do I Report The UCCB For Prior Tax Years?

The changes made from 117 to 11700 and UCCB to CCB have various implications on your taxes. For instance, all benefits received before the 2016 changes are considered taxable income. If you are yet to report this income, it is essential to find the right forms from CRA. Benefits given towards the CCB don't have to be reported on the annual return. However, if you want to report UUCB income for past tax years, you must complete the RC62 slip and use it to calculate the entry on line 11700. The CRA issues the RC62 slip to all parents that receive UCCB income. If you don't receive an RC62 tax slip, you should contact the CRA through their individual inquiry line and request the tax slip. You can also find RC62 slips online through CRA My Account, which is the recommended option at the moment.

The RC62 slip has two main sections: Box 10 and Box 12. Box 10 is for the total Universal Child Care Benefits received for the given tax year, while Box 12 is for repayments of previous years' benefits. The UCCB payments stopped in 2016 and were effectively replaced by CCB payments. However, the government continues to make due lumpsum payments for years before 2016. If you receive such UCCB lumpsum amounts, the CRA expects you to report them on line 11700 on your tax return as they are taxable. If you were a spouse or common-law partner, the parent with the lower net income will apply for the child care benefits and must file the amount on Box 10 of the RC62 and line 11700 of the T1 annual return. Here are the guidelines for reporting UCCB income for previous tax years:

• Spouse/common-law partner – If you were any of this by the end of December 31, 2019, the partner with the lower net income should file UCCB benefits regardless of who received the benefits. Enter the amount on Box 10 of the RC62 on line 11700 of your return. You should receive the RC62 slip by the end of February. If you don't, find it online or contact the CRA for assistance.

• Single parent – There are two options if you were a single parent by the end of December 31, 2019. You can include all the UCCB amounts on your income, in which case, enter the amount on Box 10 of RC62 in line 11700. On the other hand, if you are including the UCCB payments on the income of the eligible dependant of the benefits, you can include the amount on the income of the child for whom you received the Universal Child CARE Benefits. If this is the case, report the amount on line 11701.

Which Calculations Are Needed?

Line 11700 doesn't have many calculations. It features the total amount calculated from all monthly UCCB payments you received. The government continues to pay lumpsum amounts, which can make it difficult to calculate the monthly payments you received for each child. However, the CRA accommodates a special calculation for amounts higher than $300. If you receive more than the $300, the CRA will calculate your tax payable as if that's the amount you received in each previous taxation year and consider if the results are in your favour. This only applies if you don't have an entry on line 11701. You will receive the outcome through your notice of assessment or reassessment.