Child Care Expenses

Child Care Expenses

What are Child Care Expenses?

Child care expenses are amounts you paid to have someone look after an eligible child so that you could:

• earn income from employment;
• carry on a business;
• attend school; or
• carry on research or similar work, for which you received a grant.

Child Care Expenses Eligible for Deduction

• caregivers providing child care services;
• day nursery schools and daycare centres;
• educational institutions, for the part of the fees that relate to child care services;
• day camps and day sports schools where the primary goal of the camp is to care for children (an institution offering a sports study program is not a sports school); or
• boarding schools, overnight sports schools, or camps where lodging is involved 

Who is an Eligible Child?

1. The child for whom the expenses were paid for must be 16 years or less in the tax year
2. The child must be either
   1. Your child or your spouse’s child; or
   2. A child who is dependent on you or your spouse; and this child must have income less than the basic personal credit ($11,635)

The deduction amount and who claims it?

Lower income spouse deducts the MINIMUM of:

1. Amount of child care expenses
2. 2/3 * earned income of the lower income spouse
3. $ 8,000 per child <7
   $ 5,000 per child>7 but less than 16 years
   $ 11,000 per for a child of any age eligible for the disability credit

Earned income=
employment income with benefits (no deductions)
+Business income (no losses)
+scholarships+research grants

The lower income spouse (or common law partner) claims this expense; unless the parent is a single parent.

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