Are you ready for the next interest rate increase? --- Bank of Canada’s latest indicator clinches it — interest rat… https://t.co/bC5ejEnsy0
What you need to know about Child Care Expenses, part 1in Tax Advice Information and Updates
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!
- CRA announces service improvements for small and m...
- What you need to know about Child Care Expenses, p...