Best Discrimination Attorneys in Chestermere, AB

TAX TIPS: CLAIMING CHILD CARE EXPENSES IN CANADA While the pandemic has dramatically changed what child care looks like in Canada, it’s still a necessity for many working families. Claiming child care expenses lowers your net income and reduces the amount of taxes you need to pay. If you’re wondering who can claim expenses and what payments are tax-deductible, read on. Our knowledgeable CPAs can also answer your questions and help you understand changing tax laws.  Need help looking for child care programs in Alberta? The Government of Alberta has a Child Care Lookup tool.   Child care expenses 101  Nanny expenses, daycare and summer camp nurseries are all deductible for parents. However, the tax deduction must be claimed by the parent in the lower tax bracket, with a few exceptions. The value of the deduction can vary significantly, from $0 to $3,840 per kid. If the child lives with you and is under 16, the tax deduction limit is:  - $8,000 for each child under the age of 7  - $5,000 for each child between the ages of 7 and 16  - $11,000 for disabled, dependent children of any age who qualify for the disability tax credit - $5,000 for disabled, dependent children over the age of 16 who do not qualify for the disability tax credit This tax deduction lowers your net income on your tax return by the amount claimed.