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Thread: Childcare Subsidy Question

  1. #1
    Smart Canuck Venuila's Avatar
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    just curious is anyone knows a lot about childcare subsidy and how it works. I can't seem to find the answer online. I've found the calculators online so have a general idea of what we would receive but does it go by the previous years income?

    Hubby works Full-Time, I've been home for more than 3 years but want to go back to work now. If I found a full-time job now, does the subsidy amount given to us go by just his income (from last year) or both his and my "projected income"?

    TIA
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    @Venuila .....to answer your question with regards to childcare subsidy e.g. CCTB (which may include the child disability benefit) and UCCB both of which are paid out monthly on the 20th....CRA uses both yours and your husband's tax returns for 2014 to calculate what you are currently receiving (nobody has zero income period e.g. some people receive spousal support which is tax deductible just like UCCB, and some are on EI). If you start a part-time job now, you will have to let CRA know, and file according come April 2016.

    CCTB and integrated payment* dates July 20, 2015
    August 20, 2015
    September 18, 2015
    October 20, 2015
    November 20, 2015
    December 11, 2015
    January 20, 2016
    February 19, 2016
    March 18, 2016
    April 20, 2016
    May 20, 2016
    June 20, 2016

    Generally, the CRA issues the UCCB payments on the 20th of each month. See the benefit payment dates to view the last and next payment dates.
    The first enhanced payment was issued on July 20, 2015. The amount included a retroactive payment for the period covering January to June 2015.
    You can subscribe to the Electronic mailing list - benefit recipients - payment issuance to be notified when the next UCCB payments will be issued.



    The CRA will recalculate your benefit and send you a Canada child tax benefit notice showing the CRA revised calculation:
    • every July based on the returns that you and your spouse or common-law partner filed for the previous year;
    • after each reassessment of either your tax return or your spouse or common-law partner's tax return that affects the calculation of your benefit;
    • after a child for whom you receive the CCTB turns 18 (the last payment you will receive will be for the month of his or her birthday); and
    • after you tell the CRA about changes to your situation that could affect your benefit (see when to contact us about your CCTB).



    I am paying child support for 1 son based on 50-50 shared custody, so benefits are split. I also receive mine by direct debit
    Last edited by beachdown; Sun, Aug 16th, 2015 at 12:03 PM.
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    Smart Canuck Venuila's Avatar
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    Thanks @beachdown . I think my post (or what I'm calling it might not be the proper term for it). I am thinking subsidy to pay for daycare costs though, not the Canada Child Tax Benefit (CCTB).

    From cra site:
    Ontario child care subsidy

    Families can apply for the Ontario child care subsidy. The cost of this program is shared by the Ontario government, municipal governments and First Nations communities.
    Eligibility

    You can apply if your child is under 12 years old (or up to 18 years old if your child has special needs) and in either:

    • a licensed child care program
    • a school-aged child enrolled in an approved recreation program
    • a before- and after-school program operated directly by a school board

    Funding

    The amount you pay for child care depends on your family's adjusted net income.
    To calculate your net income:

    • take your net income amount on line 236 of the Canada Revenue Agency personal income tax form

    Then subtract:

    • any federal Universal Child Care Benefit (UCCB) payments (the UCCB is not considered in determining a family's child care fee subsidy)


    I'm just wondering if I were to start them in daycare full time say, September 1. If they would use our family income from 2014 (only DH was working) until we do our taxes next year - or - if they would calculate it based on his plus my "projected income".

    I'm pretty sure they base it on the previous years return but not 100% sure.

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    Yes...CRA uses the previous year filed tax to calculate any entitlement. The onus will be on you to let them know of any change in circumstances though as soon as possible. Come tax time, you might have to pay back or not.
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    Smart Canuck LisaLisaBoBisa's Avatar
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    Let's answer this Q - actually..

    YES!! They will use not your "projected" income but your actual income based on the employment that you will need to secure prior to being accepted for subsidy. Subsidy isn't projected but secured - so no job, no subsidy.. It is possible that you would work for a couple of weeks or even months before being granted subsidy due to waitlist. OR if you have a work start date you may luck out and have subsidy starting at that exact time period. At that point it's based on both incomes I think off hand the dollar amount is 40k so anything below that and you would get a ZERO rate for daycare and it just goes from there - so with a working DH you'd likely have to pay a few $ a day.. So you waitlist yourself and keep looking for work - I'm certain you'll provide both returns from last year but given that they know you're working - it's a no brainer for them to include your current wage in calculation.

    Quote Originally Posted by Venuila View Post
    just curious is anyone knows a lot about childcare subsidy and how it works. I can't seem to find the answer online. I've found the calculators online so have a general idea of what we would receive but does it go by the previous years income?

    Hubby works Full-Time, I've been home for more than 3 years but want to go back to work now. If I found a full-time job now, does the subsidy amount given to us go by just his income (from last year) or both his and my "projected income"?

    TIA

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    @OP..you mentioned in your 1st post that you've done the calculation which is good. As I mentioned up thread, it's your latest NOA that will be used to calculate any entitlement i.e. you or your husband's 2014 tax file

    To apply, you will need:

    • either the income on your most recent Canada Child Tax Benefit statement (CCTB). To replace a CCTB statement, call Revenue Canada at 1-800-387-1193
      or
      your Revenue Canada, Notice of Assessment (NOA) or Notice of Reassessment. To replace a NOA call 1-800-959-8281.


    • The names of three child care programs you are intersted in. Parents should phone and visit each child care program to make sure it meets your family's needs.
    http://www1.toronto.ca/wps/portal/co...0071d60f89RCRD#

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