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.

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