"Do you elect to include UCCB amounts in the income of the eligible dependant or child? Be sure to include this in their net income for the year:" What do I choose?

[EDD]

I'm not sure whether to check yes or no for this.  Does it mean that I add that total to my income for the year?

[Sara-TurboTax · Accepted solution]

If your marital status is Single and you have claimed your child as and Eligible dependent, you can choose Yes to elect to include UCCB amounts in the income of the eligible dependant or child.

If your martial status is other than single, or you have not elected to claim the child as an eligible dependent, you will need to choose No to elect to include this amount in your income.

For more information on UCCB, kindly follow the link below:
https://turbotax.community.intuit.ca/questions/1189891-how-do-i-enter-the-universal-child-care-benef...

[TurboTaxJeffrey]

For the most part, it is going to be beneficial to show the UCCB income as income of the child if you are a single parent.  This will reduce the eligible dependent credit, however it has the potential of reducing the amount of income taxed at your highest tax bracket.  In most provinces, even if your income isn't reduced enough to lower your tax bracket, there is still usually a provincial break in how much income can be claimed by a child before it reduces the provincial dependent credit.  However, many people may not wish to do the calculations...something you can do though is to have the software calculate both ways.  Have the software include the income as that of the child, take note of your bottom line (refund/balance due), and then have the software include the income as your own.  Whichever way is more favourable to yourself...use that!  You are entitled to claim in the manner which is most beneficial to yourself.

[Sharon7]

How can I figure out how much it will reduce the eligible dependent credit?  Does the software do this automatically?  I'm confused.  Does this mean the dependent has to file a return just to report this income?