Universal Child Care Benefit
July 24th, 2006 by Questions
Should the $100.00 per child benefit that is now given to parents be considered income for the purpose of a bankrupt\’s monthly income/expense statement. If so, which partner claims the income? Do you claim 100% of the cheque? A bankrupt\’s income is based on net income, and no income tax is deduct from the amount by the government, but it is taxable income when you file your taxes.
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July 25, 2006 at 9:12 am, A licensed trustee said:
The Office of the Superintendent of Bankruptcy has just issed a policy statement to trustees advising that the Universal Child Care Benefit SHALL be included as income for the purposes of the Surplus Income Calculation.
The cheque is made payable to a specific person, based on the prior years income tax returns – that is the person to whom it will be attributed.
In regards to the income tax affect, we suggest the that the person receiving the UCCB make an adjustment to their TD1 if they are working – that is the form that determines how much income tax will be taken form their pay – to reflect their higher income. If the person is not working then there will not be a tax implication and therefore no adjustment is necessary.
If you are uncertain how to handle the UCCB then call your trustee and ask them for instructions.