With tax season now in full flow, it’s time to submit expenses and claims. One of the most important and common claims is child care expenses.
Let’s take a look at some of the key points about child care expense claims this tax year, including what is considered an expense, how much you can claim, and who can claim it!
What are Considered Child Care Expenses?
According to the Canadian Revenue Agency (CRA), the following claims can be made for child care expenses:
- Daycare and childcare centres
- Educational institutions that offer child care services
- Day camps and day sports schools
- Caregivers providing child care services
- Boarding schools and overnight sports schools
The primary purpose of these services must be to provide child care; anything is not considered unless that is the primary service. A variety of these services can be included when submitting your claim.
However, you cannot make claims for the following services:
- Medical and hospital care
- Clothing and transportation
- Tuition fees at an educational centre or institute
- Fees for leisure and recreational activities
Using Supporting Documentation
You will need to provide proof of payment of these services within the tax year. Calgary daycare and child care providers will provide you with receipts, highlighting you have indeed paid for their services. Keep these receipts on hand in case you need them.
How Much Can You Claim?
It varies from child to child and is based on their age and if they require any dependence. According to Intuit Turbo Tax, there are specific limitations when claiming expenses, such as:
- Up to $8,000 per child under the age of 7
- Up to $5,000 per child for children aged between 7 to 16 years
- Up to $11,000, per disabled and dependent children of any age. This is considered a disability tax credit. Children over the age of 16 who does not qualify for the disability tax credit, but require care and depend on you can receive up to $5,000
For boarding school and camps, claims can be made up to:
- $200 per week for a child under the age of 7 years,
- $125 per week for a child aged 7 to 16 years
- $275 per week for an eligible disabled child
Most notably, factors such as your net income between you and your partner will impact how much you can receive from your claim. It is best to speak to your accountant or seek professional advice before commencing this process.
Who Can Claim Child Care Expenses?
You can only claim child care expenses if you are the only person supporting the child, including the eligible child’s parent, spouse or common-law partner, or the father or the mother of the eligible child.
The CRA also states that “a child who was dependent on you or your spouse or common-law partner, and whose net income in 2020 was $13,229 or less” can be included.
**2000 Days Daycare shall not be held responsible for any child care claims, or tax issues resulting from this blog post. This post is merely a guide only, and child care expense claims should be conducted by an experienced professional**
2000 Days Daycare is the daycare in Calgary SW, where your child will learn, laugh and grow. Our focus is to ensure that the first 2000 days of your child’s life (the most important for development) is maximized. We provide the platform where your child develops the soft skills that can help them communicate effectively, get along with other children, control their emotions, develop self-motivation and help them creatively solve problems. As a family operated and owned SW Calgary daycare centre, we give the extra time, attention and care that your children deserve, so they can develop the skills to excel at school and grow in self-confidence. Feel free to contact us at 403-319-2332 (Extension 1) or book a tour of our Calgary daycare today!