What you need to know about Child Care Expenses, part 1

by in Tax Advice Information and Updates
What you need to know about Child Care Expenses, part 1
Summer is in full swing and as with most families, summer activities for the kids is a MUST. And fortunately, some of these summer activities can qualify as child care expenses which you can claim when you file your taxes next year.

So here’s what you need to know about child care expenses and how you can claim them.

For income tax purposes, child care expenses are defined as amount that you or another person paid to have someone look after an eligible child so that you or the other person could earn income from employment, carry on a business, attend school or carry on research or similar work.

For the expense to qualify, the child must have lived with you or the other person when the expense was incurred. Generally, you can only deduct payments you made for services provided in Canada by a Canadian resident.

Who can claim child care expenses? If you are the only one person supporting the eligible child, you can claim the child care expenses you incurred while the eligible child was living with you. If there is another person who lived with you at any time during the year who was the eligible child’s parent, your spouse or common law partner or an individual claiming an amount for the eligible child, the person with the lower net income will claim the child care expenses. If both of you have equal net incomes, you have to agree which one will claim the child care expenses.

On our next blog, we’ll take a look at who qualifies as an eligible child and what payments you can claim so please check back!

If you need clarifications or if you have concerns regarding your child care expenses, please let us know! Call KD today!
Rate this blog entry:
0
KD PROFESSIONAL is a group of interconnected companies offering a wide range of financial, accounting and tax services to individuals and businesses across Canada.

Through our experienced staff and strategic alliances, we provide exemplary service and solutions to maximize your cash flow, while preserving Wealth.

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest
Guest Saturday, 18 November 2017
Subscribe

If you have a question about one of our products or services, please do not hesitate to contact us!
Please Enter Your Name
Please Enter A Valid Email
Please Enter Your Phone Number
Please select your preferred method of contact.
Refresh Please letters shown!

KD Professional Services
Monday-Friday 9am- 5pm
102, 221 18th Street SE
Calgary, AB, T2E 6J5

403-219-0602
403-219-0603

Read our Tweets