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If you are a Canadian taxpayer with children under 19 years of age, you may be eligible to receive child care benefits. These are monthly taxable benefits previously paid to Canadians with children under six years. In 2015, the CRA expanded the RC62 to accommodate children under 19 years. Eligible parents that receive benefits must report them in their annual return for the purposes of tax. In the sections below, we explore everything you need to know about the Universal Child Care Benefits, including the crucial boxes and lines and how to report the amounts on your tax return. Keep in mind that this information generally applies only to child care benefits received prior to July 2016. Any benefits received after that date would fall under the new non-taxable Canada Child Benefit.Easy, fast, and even fun. Wealthsimple Tax is CRA-certified tax software that you’ll actually want to use. And you only pay what you want, no catch — get started.
What is RC62?
Essentially, RC62 is a tax form designed to report benefits you receive under Universal Child Care Benefits. The CRA considered these benefits taxable income and RC62 amounts have dedicated slots in the T1. Keep in mind that if you're currently receiving Canada Child Benefits (CCB), you don't have to pay tax on those benefits.
RC62 slips are mailed to taxpayers by the end of February after the tax year you are reporting for. You can also find the slip from CRA official website under My Account. If you don't receive the slip via mail and cannot access it online, you can contact the CRA through their individual enquiries line. Every taxpayer who receives monthly UCCB amounts is expected to complete the RC62 Universal Child Care Benefits slip and use it to complete lines 11700 and 21300 on the T1 annual return. However, there are exceptions where the CRA may not require you to complete the RC62 slip. This included:
If you move to Canada during a tax year - In this case, you won't receive any UCCB income because they are awarded at the beginning of the tax year. However, if you have received UCCB benefits but did not receive them, you may still be required to complete the slip.
If someone else receives the benefits - the RC62 slip is designed for those who receive the monthly Universal Child Care Benefits. If you are not the recipient of this income, you don't need to complete the slip.
Where on My Tax Declaration Do I Report RC62?
If you receive Universal Child Care Benefits, you should ensure you have the RC62 slip by the end of February and use it to complete the necessary sections on your income return. RC62 is one of the shortest CRA slips and includes two main sections for benefits and previous year repayments. You must also indicate the year and your social insurance number at the top left of the slip. The two critical sections in the RC62 slip include:
Total Benefit Paid (BOX 10)
As the name suggests, this is the total benefit issued for the tax year you are filing for. You should check the tax year indicated on the RC62 slip to ensure you have the correct form. If you do not have a spouse (or common-law partner) at the end of the tax year indicated, you should enter the Box 10 amount on line 11700 of your T1 annual return. On the other hand, if you had a spouse or common-law partner, the partner with the lower income should report this amount on line 11700 of their return. This is regardless of who receives the benefits. You can also report the amount on your dependant's return using the federal income tax & benefit guide (500-). If you are the partner with the higher net income, enter the Box 10 amounts on page1 of your return under Information about your spouse or common-law partner.
Repayment of Previous Year Benefits (BOX 12)
If you have repaid benefits for previous years, the amount will be indicated in Box 12. The spouse, or common-law partner, who reported Universal Child Care Benefits income for the previous years should claim Box 12 amounts on line 21300 of their T1 annual return. You must enter the year and respective repayment amount. Taxpayers must keep a copy of the RC62 slip and attach one to their income return mailed to the CRA tax centers.
How Do I Find Out How Much to Declare?
If you receive Universal Child Care benefits, you should add all the tax year benefits to calculate the total UCCB income. The CRA can send you the RC62 statement via mail. However, the easiest way is through CRA My Account. You can download and print the slip or view the information online. The income on your RC62 should be a total of the income you received for all the months you received Universal Child Care Benefits. You can log in to CRA My Account and check for the benefits you received during the tax year. Canadian families can receive different benefits, so make sure you look for UCCB income. The CRA expects you to declare all amounts received and attach the RC62 slip when you send the annual return.
Calculating how much to declare can be daunting if you have more than one child under 19. Canada's government offers benefits based on various factors, including family net income, so no two families will have equal benefits. You should determine the total amount you received for each child to get the monthly total. Once you have payments for all the months you received UCCB income, you can calculate the total benefits. Another simple way is to use the assistance of experienced tax preparers. A reliable tax assistant can help you keep tabs on all slips you are expected to submit and ensure your taxes are completed on time.Wealthsimple Tax is a simple way to file your taxes. File your return with confidence it’s done right, and pay what you want—there’s no catch.
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