Child Related Benefits, Expenses and Deductions

Written by Richard Ouellette, CPA, CA on Feb. 3, 2015

There’s great news for 2015 for Canadians with children. Stephen Harper has announced a “child care benefit boost” – which includes an increase to, or return of, the monthly Universal Child Care Benefit cheques and an increase to the amount taxpayers can deduct for child care expenses and the child fitness credit.


Changes to the UCCB for 2015 – Enhanced Universal child care benefit

The universal child care benefit (UCCB) will increase to:

  • $160 (from $100) per month for each child under six, and
  • $60 (from $0) per month for each child between six and seventeen.

The UCCB is paid out monthly by cheque or direct deposit. While the changes to the UCCB will be effective January 2015, the first seven months’ difference will be paid out in July 2015. This means:

  • for children under six, you’ll receive $100 per month from January to June, $520 in July, and $160 per month starting in August.
  • for children between six and seventeen, you’ll receive $420 in July and $60 per month starting in August.

The enhanced Universal Child Care Benefit (UCCB) is not a pure win for taxpayers as it will replace the existing Child Tax Credit. This credit, which will be eliminated in 2015, is currently based on $2,255 per child which at the 15% credit rate amounts to $338 per child.

Child care expenses

The child care expense deduction, which allows child care expenses to be deducted from income when those expenses are incurred to earn employment or business income or to pursue education, will be increased by $1,000 effective for 2015 as follows:

  • $8,000 (from $7,000) per child under age 7
  • $5,000 (from $4,000) for each child aged 7 through 16 (and for infirm dependent over age 16)
  • $11,000 (from $10,000) for children who are eligible for the Disability Tax Credit

Child fitness tax credit to be doubled and made refundable

This credit was created in 2006 to help with the cost of children’s sports activities. Starting in 2015, the credit will be refundable, which lets low-income families take advantage of the credit. Previously, with a non-refundable credit, parents whose incomes were too low to pay taxes didn’t benefit from the credit but now they will.

The maximum expense that can be claimed will go from $500 to $1,000 per child. Parents can get back up to 15 per cent of their children’s registration or membership fees, a benefit of up to $150. The tax credit applies to children under 16, or under 18 if they’re eligible for the disability amount.

For more detailed information please call KWB at 780-466-6204 or email us by clicking here.

Thanks to Richard Ouellette of KWB Chartered Accountants for providing this content.

Richard Ouellette, CPA, CA

Richard Ouellette, CPA, CA


Richard joined KWB in November 2007. He graduated from the University of Lethbridge in 2003 with a Bachelor of Management. Before joining KWB, Richard articled and worked at a national firm. He successfully wrote the 2005 UFE, and obtained his CA designation in 2006.

On his personal time, Richard enjoys going home to his wife and playing with his two young children. He also enjoys traveling, golfing, biking, working out, and spending time with friends and family.

Richard's Contact Information

Other Posts by Richard

Oct 19 2012
Economic Snapshot

Are you interested in what some of the current economic conditions are in Europe and the U.S.? For a quick and easy to understand snapshot, in a half page summary format, read on.

Jul 10 2012
KWB Client Focus Group Meeting

On June 7th, KWB invited six of its clients to participate in a client focus group with the goal of discovering opportunities to better serve its customers. We learned a lot, and we want to share with you not only what we learned but also what we plan to do with it – to ensure that KWB is your accounting firm of choice today and in the future. For some of the details of what we learned and what we plan to do about it, read on.

Feb 16 2016
Income Splitting

Do you own a business - either incorporated or unincorporated - and have a spouse or one or more adult children with an income lower than your own? If so, you may be able to shift your income to these other family members, effectively moving the income from a high tax rate to a low tax rate and decreasing the overall tax burden on your family. This is called income splitting.

Feb 3 2014
KWB Seminar Topics

Vote on Future KWB Seminars 1.Retirement planning 2.Health & wellness 3.Hiring foreign workers 4.Client think tank (Improving customer experience) 5.Customer service ideas 6.Acting as an executor or agent 7.Travel 8.Finance for children, teens 9.Navigating post secondary 10.Budgeting 11.How to use an on-line portal

Jul 15 2014
Starting a new business?

There are a number of things that you will need to do including: 1)      Incorporating a company.  But before you do, you should talk to us about the types of shares and number of shares that should be issued to each person that you are thinking about involving in your business. And who should

Sep 23 2014
Retirement Planning Alternatives

We have all been told to plan for our retirement.  Yet, have you ever wondered WHY? Perhaps you have a plan, most people do, but is it the RIGHT plan? In the following example, it is clear how ADVANCED planning can make a huge difference for you and your loved ones. In the table

Nov 12 2014
The "Family Tax Cut" credit

Prime Minister Stephen Harper and Finance Minister Joe Oliver recently announced a “Family Tax Cut” credit which allows certain Canadian families to reduce their overall federal income tax. This relief will be available starting in 2014. The new measure would allow a higher income spouse to shift a portion of their income to a lower

Jul 23 2015
Change in use of property from capital to inventory or vice versa.

There are no immediate repercussions for the change in business use of property from capital to inventory. The differences arise upon sale of the real estate. There is no provision in the Income Tax Act which describes the circumstances in which gains from the sale of real estate are to be determined as being either

Aug 4 2015
Corporate expenses - What can you deduct?

Often deductible business expenses are overlooked or missed as business owners are unsure whether they are deductible. A business expense is any cost incurred by the company to generate income. These expenses must be supported by physical documents such as invoices, purchase contracts, sales receipt, etc. If cash is used to purchase items, it is

Sep 22 2015
Alberta Corporate Tax Rate Changes

In addition to personal income tax increases, the Alberta NDP government has also increased general corporate tax rates. However, businesses that earn $500,000 or less of active business income will not be affected by the tax increases due to an offsetting increase to the Alberta small business deduction rate. Businesses that have more than

Oct 6 2015
Deciding when it’s time to start taking your CPP retirement benefits

You can start receiving CPP pension benefits when you reach age 65 (the month after your 65th birthday) which will entitle you to a full CPP benefit depending on how much and how long you have contributed to the CPP. However, you have the following choices: Take a reduced CPP retirement pension as early as

Mar 16 2016
Director's Liability

While the tax debts of a corporation belong to the corporation and the tax debts of an individual belong to that individual, there are some exceptions to the rules. Directors may be held personally liable for certain tax liabilities of the corporations they serve. When a corporation faces insolvency, remittances to the government may fall

Mar 29 2016

The 2015 federal budget announced the introduction of a new Home Accessibility Tax Credit (HATC), beginning in 2016. The HATC is a non-refundable tax credit for qualifying expenses incurred for work performed or goods acquired in respect of a qualifying renovation of an eligible dwelling of a qualifying individual. A qualifying individual and eligible individuals

May 24 2016
CRA Letter Campaign

Every year CRA conducts reviews and audits to sample and educate tax payers on tax compliance, and 2016 will be no different. CRA estimates that approximately 30,000 letters will be sent out across Canada this year. These letters will give you information about certain claims you have made on one or more of your

Aug 23 2016
Top 7 Overlooked Tax Deductions

Are you paying too much in taxes? Are you getting all the tax deductions available for your business? An effective way to minimize your company’s tax expense, in addition to good planning, is to ensure the company is claiming all of the expenses legitimately allowed under the tax act. Take a look and see if any