Child Care Expenses

  • a

    Elegible Taxpayers

    Costs must be paid to earn income from employment or self-employment or so that taxpayer may attend school either full or part time
  • b

    Eligible Dependants

    Under the age of 16 (at any time during the year) or who are physically or mentally infirm (no age limit). Must be your child, or that of your spouse or common law partner’s child or a child who was dependent on you/spouse. Otherwise child’s net income must be less than basic personal amount.
  • c

    Eligible Babysitters

    Expenses actually paid to a Canadian resident or paid to a non-resident for services outside Canada for a resident or deemed resident of Canada. Babysitters may be related to you, but if they are, the sitter must be over age 17. Payments made to a parent of the child or to a supporting person are not deductible; nor are payments to those who are claimed as a dependant by the taxpayer. The cost of paying a non-related nanny, however, including all benefits paid under source deductions, is deductible; as are payment to day nursery schools and centres, educational institutes and after-school activities providers, day camps and day sports schools where primary goal is to provide care, and boarding schools, overnight sports schools or camps. Receipts are required and in the case of an individual, the Social Insurance Number must be provided.
  • d

    Maximum Claim

    Lease of: Eligible child care expenses paid to eligible child care providers, two-thirds of earned income and the following limits
    - $4,000 for each child aged 7 – 16 for which the disability amount cannot be claimed plus
    - $7,000 for each child under 7 for which the disability amount cannot be claimed plus
    - $10,000 for each disabled child

Penalties and Interest Charges on
Overdue Taxes

Filing and Payment Deadlines and Penalties—Personal Tax Returns

Deadlines and Penalties Filing of Returns
Federal and Quebec
General
Self-employed person and spouse
April 30
June 15
Final Payment of Tax
Federal and Quebec
General
Self-employed person and spouse
April 30
April 30
Late Filing Penalty
Federal and Quebec
Federal—Second occurrence
5% plus 1% per complete month while failure continues (not exceeding 12 months) of unpaid tax
10% plus 2% per complete month while failure continues (not exceeding 20 months) of unpaid tax
Notice of Objection
Federal and Quebec
Later of:
(i) one year after filing deadline, or
(ii) 90 days after Notice of Assessment
Notes
(1) Federal and Quebec personal income tax returns must be filed on or before April 30 of the following year. Self-employed individuals with professional income or income from an unincorporated business and their spouses/partners have until June 15 of the following year to file their returns. Where an individual dies, the final personal income tax return must generally be filed on or before the regular filing deadline for the year or six months after the death of the individual, whichever is later.
(2) The final tax balance owing for all individuals, regardless of the filing deadline, must be paid by April 30 of the following year. If the due date falls on a Saturday, Sunday or public holiday, the payment must be received by the Canada Revenue Agency (CRA) or be postmarked by the next business day. Quebec residents must make their cheque or money order payable to the Minister of Revenue of Quebec. The return and payment must be sent to the Quebec Revenue Agency. For Quebec purposes, if the due date falls on a Sunday or public holiday, then the deadline is extended to the next business day. The final tax balance owing on the federal personal income tax return of an individual who has died must be paid by April 30 of the following year, or six months after the death of the individual, whichever is later.

Business and Self-Employment Expenses

If you’re self-employed, expenses must relate to a workspace that is either your principal place of business, or used exclusively for the purpose of earning income from the business. “Principal” is generally interpreted as more than 50% of the time. For the second criterion to apply, the space must also be used on a regular and continuous basis for meeting clients, customers or patients. If you qualify to claim home office expenses, you can deduct a portion of the operating costs of your home. For example, assume your home office takes up 10% of the total square footage of your home. You can claim as a deduction from your business income 10% of your mortgage interest (not principal), property taxes, heat, hydro, water, home insurance and maintenance costs. Any expenses directly related to the home office can be deducted in full. Home office expenses can only be deducted from the business carried on in the home and cannot be used to create a business loss. Eligible expenses you are unable to use in the year they are incurred can be carried forward to subsequent years and deducted from income generated by the business at that time, as long as the business-use criteria discussed above are still met. If you’re registered for the GST/HST and you qualify to claim home office expenses, input tax credits (ITCs) can be claimed for the portion of your home expenses attributable to the business activity. However, an ITC can only be claimed for those expenses that are subject to GST/HST—for example, heat, hydro, etc. Mortgage interest and property taxes are not subject to the tax.
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