Government is taxing your childcare benefits

Cameron Wigmore

I wonder how many people are aware that their childcare benefit payments count as income and are being taxed back by the Conservatives.

Recently, my wife and I, along with all other parents with a child under six years old, received a letter from the Canada Revenue Agency that included a universal child care benefit statement (RC62). The Harper government is now taxing back a large portion of that benefit. Instead of $1200 per year per child under six, you will only get to keep $460 of this if your combined family income is between $30,000 & $40,000 per year. The rest is taxed back.

So not only was the $100 per month too little to pay for early childhood development & education, now it may even put my income in a higher tax bracket, and could cause me to lose a significant portion of my tax return.