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Author Topic: Keep track of your child-care expenses, expert urges  (Read 3923 times)

Offline CareDC

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Keep track of your child-care expenses, expert urges
« on: August 11, 2008, 03:22:38 PM »
PARENTHOOD may have its rewards but saving money isnít one of them. From diapers and baby food to the senior prom, the cost of raising a child to age 18 in Canada is significant.

For working parents, one of those expenses in the early years is likely to be child care. Child-care costs vary depending on the childís age and where you live, but itís not uncommon for these costs to be upwards of $6,000 per year.

One consolation for that particular expense is that itís tax deductible. Parents can claim up to $7,000 for every child under the age of seven, $4,000 for every child age seven to 16, and up to $10,000 for a child who qualifies for the disability tax credit.

"Keep track of your child-care expenses in order to maximize the amount you can claim," says Christine Van Cauwenberghe, tax and financial planning expert with Investors Group. She says many parents make the mistake of not claiming the maximum amount of eligible expenses.

That would be an opportunity lost, as child-care amounts cannot be carried forward to future years.

Parents are advised to report each child 16 and under on their tax return, whether or not they incurred any expenses for that child. That way they can claim the cumulative amount for the children.

http://thechronicleherald.ca/Business/1072474.html

Offline Motherof2

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Re: Keep track of your child-care expenses, expert urges
« Reply #1 on: November 24, 2008, 02:56:32 PM »
Hi there,

I'm from Edmonton, Alberta and I have 2 great kids.  Does this apply to CAnada?..all provinces?
I'm curious because I don't believe I had been claiming any child care expenses.

It would be great to know.  Thanks!


Offline Laura

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Re: Keep track of your child-care expenses, expert urges
« Reply #2 on: November 24, 2008, 03:38:36 PM »
Hi Motherof2,

I believe that claiming child care expenses applies to all of Canada.  I suggest that you look into the Canada Revenue Agency Website for more details in relation to your province requirements, as they may differ from another province. I've attached the link for your convenience: www.cra.gc.ca

Offline spud

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Re: Keep track of your child-care expenses, expert urges
« Reply #3 on: January 18, 2009, 06:15:50 PM »
I totally agree. I provide tax receipts every Jan and claim ALL of my income each year. Many of my dc families get a good portion of their childcare expenses returned each tax year. Depending on howyou apply those expenses. Please keep in mind a legal childcare provider will give reciepts and PAY taxes each year for their income (after expenses.)

 

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