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But excuse me if I’m wrong, some expenses are just a luxury of being able to claim...ie; mortgage interest, hydro, water, internet, cable, etc. All things that you’d be paying for regardless if you ran a daycare. And no one forces you to claim those things. You could claim $0 in expenses if you wanted to. You just wouldn’t benefit at tax time.
You are wrong.
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My main question is though, for someone running a home daycare that is planning on having another child eventually, is it worth it to pay into EI? Because as I’ve been told, the maternity leave benefit amount is calculated as 55% of your income AFTER expenses. However...could you not just NOT claim any expenses the year prior to planning on becoming pregnant, that way your income on paper is at its highest, and your maternity leave benefit amount would be based off of that? Please help!
You could decide not to claim any expenses and some do that in your situation. Be aware that if you opt into EI, you cannot make a claim for a full year but yes, it would be 55% of your profit not your takings. Personally, I think you'd be better off saving for your time off. Not claiming your expenses only saves you the taxable amount of that and as said, this is the most audited business there is. If your income is way higher than others in your area, you can expect an audit in the coming years.