rsbhj

Hi

Looking for a bit of information on what you are entitled too with regards to child benefit, childcare benefit or allowances etc in Canada

A bit of background I am by no way looking to rely on these, and I don't rely on these in the UK. I am just interested to know what are the entitlements.

In the Uk me and my wife both work, we get standard child benefit for 2 kids about £140 a month, tax free childcare vouchers through work up to the value of £243 a month each, i.e you pay these off your salary before tax but only up to £243 a month the rest is taxable.

That is the only things we are entitled too until they are 3 and you are able to get 3hrs a day at pre-school nursery.

My question is if we were both to work, me full time, my wife 3 days a week, 2 kids in nursery 3 days a week what would we be entitled to? CCTB and UCCB? Any others?

My wife is citizen by descent, and the rest of us are PR.

caleo

A lot of it depends on your income too. I am not sure about the amounts but I think there is $160pm per child under 6 goes down to $60 per month per child 6-18 - this extra $60 is new this year (UCCB). The Child tax credit is worked out based on income, ours started once we filed our first tax - and it was backdated.
Childcare is a deductible when you file your taxes.
I found childcare where I am to be relatively less expensive than I was paying in the UK - but when they are at school, the childcare for the summer months really adds up for camps over the 2 and a half month holiday.
Here is a calculator to work out some of the benefits.

Child and family benefits calculators

pinzo

The UCCB is currently $100 per month per child under 6 increasing to $160 in July this year although the government will backpay the additional $60 per month from Jan-Jun once the increase kicks in. (You pay tax on all this income when you file your taxes.)
We also applied for CCTB which is dependent on total income....let me put it this way, we both earn decent (but not extravagant) incomes and we didn't get much at all. It was so small that the whole year worth of benefits was paid in one lump sum.

For child care, we are getting receipts from our home daycare so we will claim it on our taxes next year to claw back some pennies that will help.

You can also claim any sports/art activities you put your kids in on your taxes which will help with a refund. We're not at that stage yet with our child so I don't know how good that is yet.

rsbhj

Hi

Thanks for the information.

So I would be entitled to both UCCB and CCTB?

Is UCCB means tested or is that standard $160 (from July) for all with kids under 6?

So CCTB is means tested?

You can also get tax back on childcare fees is that right?

caleo

uccb is not means tested - CTC is. As per the post above, we have 2 children and both work full time - we don't qualify for CTC.
When you complete your tax return, you childcare can be used as a deductable - I am not sure how much you get back.

Atlantic Xpat

Childcare (Daycare, Nanny etc) expenses are tax deductible upto $7000 per child per year. Inevitably childcare expenses will be more than $7k per child but thats all you can claim.

rsbhj

so UUCB is a standard $160 a month fee.

I would be full time, my wife 3 days a week prob joint income of $80k, I doubt I'd qualify for CCTB or not much.

I can claim the tax back on my child care fees up to $7000 per child. My childcare fees will appear to be about $9360 per child

Atlantic Xpat

That's about right. With all due respect and without wishing to tell you how to live your lives, on that joint income, childcare is going consume a large percentage of your income. If it were me, we'd be doing the maths on whether it's worth one partner having that 3 day a week job or being a stay at home parent.

rsbhj

lol I am starting to think the same myself, I have a lot of figures down so just trying to get a feel for the childcare cost.

We are spoilt in the UK as we pay for 2 days per child a week just now, my wife works 4 days and grandparents help out 2days and my wife looks after them the day she is off.

The childcare bill is without a doubt going to play a massive part on what we can afford.

I have a look at the calculators and on joint $80k it appears about $133 a month, so total would be 160x2+133=$453 a month + tax free allowance up too $7000?

Atlantic Xpat

If $133 is what the calculators tell you that you'd get in CCTB? Then yes. The tax credit is going to worth maybe $3k or so for you as an estimate. You'd get that back as a lump sum after filing your tax return. So it doesn't help in monthly cashflow so much!

rsbhj

What I receive in the UK goes to my kids accounts, so I was hoping to do the same in Canada, so lump sum is prob better.

On those figures then total is about $8500 a year ($700 a month).

It's the near $19k a year on child fee's that are worrying

P.S

Is that estimate of $3k on one allowance or 2 kids allowance?

AlliF

That seems like a lot of money. Where are you going to be living? Is there any way to reduce that?

We have one child who will be going to nursery 2 days a week in fall - she will be going for 2hrs at a time to the nursery (just as a preparation for Kindergarten -which will not be full days either) and continuing at her current home day-care before and after.
That is going to cost just $280 a month.

SchnookoLoly

My husband and I were just talking about this. Average in the GTA seems to be about $60/day or so. IF you assume full-time care for 50 weeks, that's $15,000 per year.

AlliF

Wow, shows you how much provinces differ - $60 a day is very high in comparison to MB then for day-care. (although if we put her in likes of Montessori full time then that works out at $900 a month)
I think he said 3 days a week though.

sharkus

Oh god, don't get me started on childcare costs! HydroKids (downtown TO, and it was excellent!), was around 1300 per month. for some clarity, mortgage payment was between 1300 - 2100 (refinanced it so it got lower) a month.

The cost was partly worth it, as it was very close to one of our workplaces, however, small creature, TTC, and GO, doesn't always generate a calm and relaxing atmosphere.

He's now in one closer to home, and I believe it is less expensive, but still a lot of money.

To be honest, I'd rather pay a lot and know he is being well looked after than to pay less and not be totally secure in that.