Tax Tip – Child Care Expenses

March 05, 2018

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If you or your spouse or common-law partner paid for someone to look after your child so you could earn income, go to school or conduct research during the year, you may be able to deduct the child care expenses on your tax return. An eligible child is one who was under 16 years of age at some point during the year or had a mental or physical impairment. Child care expenses are deductible only by the lower-income spouse or partner unless that individual was infirm, confined to an institution, living separate and apart because of a marital breakdown or in attendance at a designated educational institution in the year. For your 2017 tax return, the deduction limit is $8,000 for each child under the age of seven and $5,000 for children seven to sixteen years of age. If the child is eligible for the disability tax credit, the limit is $11,000. As well, it should be noted that the total deduction cannot exceed two-thirds of the claimant’s earned income. Your BDO tax advisor would be pleased to provide further details.

This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of March 5, 2018.