Guide to the RC62 UCCB Tax Slip

If you are a newcomer to Canada and have children, you may have heard about the Universal Child Care Benefit (UCCB). While this program was replaced by the Canada Child Benefit (CCB) in July 2016, some families still receive RC62 tax slips for retroactive or adjusted UCCB payments. Understanding this slip is important for filing your taxes correctly and avoiding issues with the Canada Revenue Agency (CRA).

What Is the RC62 Tax Slip?

The RC62 is an official tax information slip issued by the CRA. It tells you the total amount of UCCB payments you received during a specific tax year. The UCCB was a taxable benefit that provided monthly payments to families with children under the age of 18. For children under six, families received up to $160 per month, and for children aged six through seventeen, the amount was up to $60 per month.

Even though the UCCB program has ended, the RC62 slip may still be relevant if:

• You received a retroactive UCCB payment in the current tax year
• You had a UCCB overpayment that was adjusted
• You are filing or amending a tax return from a year when UCCB was active (2006 to 2016)

Who Receives the RC62?

The CRA issues the RC62 to the individual who received the UCCB payments. In most cases, this is the parent who applied for and received the benefit. If you are a newcomer and you applied for the UCCB when you first arrived in Canada (before July 2016), you may have an RC62 slip in your CRA account.

Important: The RC62 is different from the RC62E slip for Employment Insurance. Make sure you are looking at the correct document.

How to Find Your RC62 Slip

The CRA typically mails the RC62 slip to your address on file by the end of February each year. However, you can also access it online:

1. Log in to your CRA My Account
2. Navigate to "Tax Returns" and then "Tax Information Slips"
3. Select the relevant tax year
4. Look for the RC62 slip under your available documents

If you have not yet set up your CRA My Account, we strongly recommend doing so. It gives you access to all your tax slips, benefit information, and allows you to file and track your return online. You can register using your Social Insurance Number (SIN) and personal details from a recent tax return.

Reading the RC62 Slip

The RC62 slip contains several important boxes:

Box 10: Total UCCB Payments

This is the total amount of UCCB payments you received during the tax year. This is the main figure you need for your tax return.

Box 12: UCCB Repayment

If you repaid any UCCB amounts during the year (for example, due to an overpayment), this box shows the repayment amount. You can deduct this from your income.

How to Report UCCB Income on Your Tax Return

Here is where to report each box on your T1 General tax return:

1. Box 10 amount: Report this on line 11700 (formerly line 117), "Universal Child Care Benefit"
2. Box 12 amount: Report this on line 21300 (formerly line 213), "Universal Child Care Benefit repayment"

The UCCB income is taxable, which means it increases your total income for the year. However, there is an important tax planning strategy available to families.

Choosing Who Reports the UCCB Income

If you have a spouse or common-law partner, you can choose to have the person with the lower net income report the UCCB amount. This can reduce the overall tax your family pays because the lower-income spouse will likely be in a lower tax bracket.

To do this, the lower-income spouse reports the UCCB amount on line 11700 of their own return. The person who actually received the RC62 does not report it on their return. Make a note in your records that you are using this election.

This strategy is especially helpful for newcomer families where one spouse may not be working yet or has a lower income while settling in. For more about tax strategies for newcomers, see our guide on claiming tuition amounts on Schedule 11.

UCCB vs. Canada Child Benefit

Since July 2016, the UCCB has been replaced by the Canada Child Benefit (CCB). The CCB is a major improvement for most families because it is tax-free. You do not need to report CCB payments as income on your tax return.

Key differences between UCCB and CCB:

• UCCB was taxable; CCB is tax-free
• UCCB was a flat amount per child; CCB is income-tested (lower-income families receive more)
• UCCB required a separate application; CCB is typically applied for through the child benefit application process when you register a birth or when you file your taxes

If you are a newcomer who recently arrived in Canada, you should apply for the CCB rather than the UCCB. You can apply by filling out form RC66, Canada Child Benefits Application.

Common Mistakes to Avoid

Filing your taxes with UCCB income seems straightforward, but newcomers often run into these issues:

1. Forgetting to Report the UCCB

Some people assume that because the UCCB was a government benefit for children, it does not need to be reported. This is incorrect. The UCCB is taxable income and must appear on your return. The CRA will catch unreported amounts and may reassess your return.

2. Reporting It on the Wrong Line

The UCCB goes on line 11700, not on line 13000 (other income) or any other line. Using the wrong line can cause processing delays.

3. Not Claiming the Repayment Deduction

If Box 12 on your RC62 shows a repayment amount, make sure you claim it on line 21300. Forgetting this means you pay tax on money you already returned to the government.

4. Not Electing the Lower-Income Spouse

Many families miss the opportunity to have the lower-income spouse report the UCCB, which could save them hundreds of dollars in taxes. Review both spouses' incomes before deciding who reports it.

What If You Did Not Receive Your RC62?

If you expected to receive an RC62 but did not get one by mid-March, take these steps:

1. Check your CRA My Account online, as the digital version may be available even if the paper copy was lost in the mail
2. Confirm that your mailing address is up to date with the CRA
3. Call the CRA's individual enquiries line at 1-800-959-8281 to request a duplicate
4. If you need to file before the slip arrives, use your bank records or UCCB payment statements to estimate the amount and attach a note to your return

Deadlines and Filing Requirements

Your tax return is due by April 30 of each year. If you or your spouse is self-employed, the filing deadline is June 15, but any taxes owing are still due by April 30. Make sure your RC62 income is included by whichever deadline applies to you.

For more information on tax deadlines and obligations for newcomers, visit our comprehensive guide to CPP contributions on Schedule 8 and our guide to the T2091 principal residence form.

Tips for Newcomers

• Set up CRA My Account as soon as possible after arriving in Canada. This gives you digital access to all your tax slips and benefit information.
• Keep copies of all tax slips, including the RC62, for at least six years in case the CRA reviews your return.
• If you are unsure about any tax form, consider using a free tax clinic. The CRA's Community Volunteer Income Tax Program (CVITP) offers free tax preparation for eligible individuals, including newcomers with modest incomes.
• File your taxes every year, even if you have little or no income. Filing ensures you receive benefits like the CCB, GST/HST credit, and BC Climate Action Tax Credit.

Additional Resources

Here are some helpful links for newcomers dealing with tax slips and child benefits:

• CRA Child and Family Benefits page
• How to File RC381 for Inter-Provincial Transfers
• WelcomeAide Resources for Newcomers

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