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.
