Child Care Deductions: What can I claim?
If you are a parent who has to pay for child care while you go to work or school, the payments you make for child care (subject to some restrictions listed below) can be a deduction from your gross income.
You can claim the following childcare expenses incurred in the tax year:
- Caregivers such as nannies and babysitters (you must provide their Social Insurance Number as well as all related receipts).
- Day nursery schools and daycare centres.
- Educational institutions that provide childcare services.
- Day camps and day sports schools with a primary goal of childcare.
- Boarding schools, overnight sports schools, or camps where lodging is involved.
There are annual deduction limits that vary with each child’s age and, if your child has a disability, a higher limit may be available. You can claim up to 2/3rds of your earned income, up to the following maximum amounts for the 2019 tax-year:
- $8,000 per child under 7
- $5,000 per child between 7 to 16
- $11,000 for disabled, dependent children who qualify for the disability tax credit
- $5,000 for a disabled child over 16 who does not qualify for the disability tax credit but is still dependent on you
For a boarding school or overnight camp that provides childcare, you may only claim the following amounts (up to):
- $200 per week for a child under 7
- $125 per week for a child between 7 and 16
- $275 per week for an eligible disabled child
The child care expenses most often must be claimed by the person with the lower net income; unless any of the situations listed in Part C or Part D of form T778 applies.
The above is not an exhaustive list of deductible child care expenses. For more information, see Income Tax Folio S1-F3-C1, Child Care Expense Deduction.
We can assist you with all your family tax deduction questions and give you personalized tax advice. Be sure to contact Ritchie Shortt & Tully LLP if you have any questions or would like our assistance.