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  1. #1
    Administrator Starting to feel at home... admin's Avatar
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    Claiming childcare tax credits

    Hello,

    I found these very interesting tips to help parents claim childcare costs for tax purposes:
    http://www.taxtips.ca/filing/childcarecosts.htm

    You can also check Canada's Revenue Agency bulletin IT-495 on Child Care Expenses:
    http://www.cra-arc.gc.ca/E/pub/tp/it495r3/README.html

    Hope this helps!

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  3. #2
    Shy
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    So it seems we can claim $7000 from our taxable income? That seems like a pretty good deduction!

  4. #3
    Euphoric !
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    But you also need to be able to substantiate that you actually paid that amount if you are audited. So be sure that your caregivers gives you receipts for everything you pay and ideally keep a duplicate of all cheques you give.

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  6. #4
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    You will also need your carer's SIN number if she's an in-home carer.

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    Quote Originally Posted by camila View Post
    Nvm everyone, if I read the threads first it would have helped with my question LOL. Looks like I cant unless if Im working with an agency.
    Hi Camila - What looks like you can't unless working with an agency?

    Agency or private (unregistered day home) it doesn't matter when it comes to claiming your business expenses.

    Here is a tax guide from Canada Revenue agency which explains what those who use their home for day care may claim. The status of your day home is irrelevant. The criteria is if you are taking children into your home, as a self-employed person and being paid to care for them.

    http://www.cra-arc.gc.ca/E/pub/tg/p134/

    If your comment was regarding providing clients with a tax receipt, again, the above criteria is all that you need to meet. Details of issuing a receipt and what information must be included on it, are in the above guide too.

  8. #6
    Do you know whether all home care owners registered at Daycare Bear are required to give us their SIN or any applicable receipts so that we can include the information when we file our tax return?

  9. #7
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    Quote Originally Posted by loneju View Post
    Do you know whether all home care owners registered at Daycare Bear are required to give us their SIN or any applicable receipts so that we can include the information when we file our tax return?
    ALL PROVIDERS PERIOD are required to give their SIN unless they have registered their business and therefore have a reg number to provide instead.

    It has nothing to do with being a provider registered on this site.

    IT is a legal requirement to declare income earned in Canada. In-home day care providers have a job code like every other job in the country. This job code is one of only two, who can operate a business from home, without registering that business however, in doing so, they have to provide their SIN on day care receipts.

    Every customer/client of any business in Canada is legally entitled to a receipt for monies paid.

    This means, even if a cash agreement was reached, and the provider intended fraudulently missing their income from their tax return, that client can demand a receipt at the end of the day.

    The receipts are used by day care parents to claim a federal tax credit. To date, the max they can claim is $7,000 per annum. As from 01-Jan-2015, that amount will increase to $8,000 per annum.

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  11. #8
    Thanks for asking this question. I was just going to create a new thread dedicated to the same issue! Nothing was found!

  12. #9
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    Thank you for the thread, as far as I know the child tax credit is a tax credit worth up to $2,000 per qualifying child and $500 per qualifying dependent. It is one of three kid-focused federal tax credits and such an option are among the most effective ways to reduce your tax bill. For a child's tax credit you must have provided at least half of the childís support during the last year, and the child must have lived with you for at least six months. Please correct me if Iím wrong. And the child has to be 16 or younger by the end of the calendar year.
    Last edited by Taylor5469; 05-02-2019 at 08:52 AM.

  13. #10
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    Quote Originally Posted by Taylor5469 View Post
    Thank you for the thread, as far as I know the child tax credit is a tax credit worth up to $2,000 per qualifying child and $500 per qualifying dependent. It is one of three kid-focused federal tax credits and such an option are among the most effective ways to reduce your tax bill. For a child's tax credit you must have provided at least half of the child’s support during the last year, and the child must have lived with you for at least six months. Please correct me if I’m wrong. And the child has to be 16 or younger by the end of the calendar year.
    YOu're wrong. Because you are answering about the facts in USA and this is a Canadian site. Different countries. Different tax laws. Different limits. Different child care laws.

    In Canada it's actually increased since this thread. Max of $8k per child but its the taxable amount you get a tax credit for not the entire expense. So whatever your personal tax would be on the $8k is what you will get a tax credit for,

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