Universal Child Care Benefit (UCCB)
The Universal Child Care Benefit (UCCB) was a taxable benefit that was eliminated in 2016 and replaced by the non-taxable Canada Child Benefit (CCB). Although the regular monthly payments ended, you may still have to report UCCB income or claim a repayment deduction if you received a retroactive payment or repaid a benefit after June 2016.
Income from a Registered Disability Savings Plan (RDSP)
The taxation of a Registered Disability Savings Plan (RDSP) is unique because withdrawals consist of both taxable and non-taxable amounts. Personal contributions to an RDSP are not tax-deductible, so any portion of a withdrawal representing these contributions is tax-free and not included in the beneficiary’s income. RDSP issuers (financial institution) will send the beneficiary a T4A slip for federal tax purposes and an RL-2 slip for Quebec tax purposes, detailing the taxable portion of the withdrawals.
The following amounts in an RDSP are taxable when withdrawn:
- Canada Disability Savings Grant (CDSG): Federal matching grants paid into the plan are taxable.
- Canada Disability Savings Bond (CDSB): Federal bonds paid into the plan are taxable.
- Investment income: Any growth from investments (interest, dividends, and capital gains) within the RDSP is taxable.
- Rollovers: Proceeds from certain tax-deferred rollovers, such as from an RESP or RRSP, are taxable.
Example :
Jeanne, a Quebec resident and beneficiary of an RDSP, withdraws $20,000 from her plan. The withdrawal consists of $8,000 in original contributions, which are non-taxable, $7,000 from government grants and bonds, and $5,000 in investment income, both of which are taxable. Jeanne’s financial institution issues a T4A slip, showing $12,000 in box 131 and RL-2 slip showing the $12,000 as taxable income.
Answer: Jeanne reports the $12,000 taxable portion of her RDSP withdrawal on line 12500 of her federal T1 tax return and on line 154 of her Quebec tax return.
Posted on 15 January, 2026