I just did my 2021 Taxes and cannot believe the maximum amount that can be claimed is $8000.00 for child care. In my area there is a lack of child care programs and I have had to hire a private nanny. That cost me almost $30,000.00 for full time child care due to pandemic and schools being closed. Now I find out I can only claim $8000 of that. So I am being kept in a higher tax bracket and have to pay more taxes. The nanny is being taxed on the income that I pay, the majority I am paying income tax on as well. This is double taxation on families that have a lower disposable income because of the child care and now we are being double taxed on top of that.
I already wrote to my MP and I encourage all families to do the same. This needs to be changed especially because of the pandemic and the higher child care costs.
