If you receive the federal Universal Child Care Benefit, which is considered taxable income both federally and provincially, then this credit offsets Nova Scotia taxes paid.
The Universal Child Care Benefit is a federal program that gives parents or guardians $100 per month for each child under the age of six.
Both the Universal Child Care Benefit and the Nova Scotia Child Care Benefit Tax Credit came into effect on July 1, 2006.
EligibilityTo be eligible for this tax credit, you must meet all the following requirements:
- Have a child or children under the age of 6
- Have income lower than any co-habiting spouse or common law partner, or have no co-habiting spouse or partner
- Are a resident of Nova Scotia
- Pay income taxes in Nova Scotia
How to ApplyTo get this tax credit you must meet the eligibility criteria above and complete the applicable section on your Nova Scotia tax return.
You have to be registered for the federal Universal Child Care Benefit before you can receive the Nova Scotia Child Care Benefit Tax Credit.
If you are not already getting the Universal Child Care Benefit (UCCB), you may have to apply to the Canada Revenue Agency (CRA).
Effect of this tax credit on your eligibility for other tax programs
Any extra money you get from the federal Universal Child Care Benefit and the Nova Scotia Child Care Benefit Tax Credit will not affect your eligibility for the Nova Scotia Child Benefit or the Low Income Tax Reduction.