Did you know you may combine all the allowable child care expenses for your family and use them for only one child?
Neither did I! I cannot believe that in all the years of giving tax advice, I did not know this.
Let’s walk through an example:
Your family has 3 children: Robert 15, Adrian 13 and Deborah age 11. Deborah also qualifies for the Disability Tax Credit. The family limit for Child Care Expenses is $21,000 ($5,000 + $5,000 + $11,000). Visit TaxTips.ca for a detailed breakdown of what each child may claim.
Robert and Adrian hang with friends after school and do not need child care. Deborah has very high needs and must be supervised at all times. In this case, the family may claim up to $21,000 annually for Deborah’s child care.
Child Care Expenses are a tax deduction rather than a tax credit, so this is potentially more valuable to the family in question. Please read my page Child Care Expenses for more information.
Many thanks to Jamie Golombek of the Financial Post for bringing this to our attention.