If the deceased was receiving the tax credit for childcare expenses, in your capacity as the liquidator of the succession, you must notify Revenu Québec of the death. You will thus avoid having to reimburse payments made after the death. Since the payments are made by direct deposit, they will be cancelled.
Expenses paid for childcare services may give entitlement to a refundable tax credit. The amount of the credit is based on family income. Advance payments are possible, provided certain conditions are met.
Qualifying childcare expenses
Expenses that qualify for the refundable tax credit for childcare expenses include
- expenses paid to a daycare service, a municipal recreation centre (during school vacations), a day camp, a babysitter in the home;
- additional expenses paid for overtime childcare services and childcare services provided on statutory holidays;
- expenses for meals provided by a daycare service or a camp, if these expenses are included in standard costs and are not billed separately;
- expenses paid to a camp, a boarding school or a sports school, up to certain amounts.
Non-qualifying childcare expenses
Expenses that do not qualify for the refundable tax credit for childcare expenses include
- expenses paid for daycare service where the reduced contribution applies;
- amounts paid to the child’s father or mother, or to a person living in a conjugal relationship with the child's father or mother;
- medical expenses and other expenses related to medical services or hospital care, as well as transportation expenses;
- expenses for teaching services;
- clothing and other personal expenses;
- childcare expenses for which another person has already claimed a tax credit for childcare expenses for the same child;
- expenses for meals, unless they are included in standard daycare costs;
- additional expenses during outings for admission to an activity or for transportation;
- registration fees for courses or recreational activities offered by municipalities during the school year;
- expenses reimbursed by the ministère de l'Emploi et de la Solidarité sociale.
Spouse on December 31
An individual’s spouse is the person who was either of the following:
- the individual’s spouse at the end of the day on December 31, unless the individual was separated from his or her spouse at that time because of the breakdown of their relationship. If, on December 31, the individual and his or her spouse were separated because of the breakdown of their relationship and their separation lasted less than 90 days, the individual is considered to have had a spouse on December 31;
- the individual’s spouse at the time of his or her death, provided the two of them had not been separated for 90 days or more at that time because of the breakdown of their relationship and the individual did not have a new spouse on December 31.
Clientele
Individuals who have paid qualifying childcare expenses for an eligible child.
Conditions
All the following requirements must be met:
- The individual resided in Québec on December 31 of the taxation year concerned, or resided in Canada outside Québec on that date and carried on a business in Québec during the year.
- The individual, or the individual’s spouse on December 31 (see the definitions), paid qualifying childcare expenses for an eligible child who lived with the individual (or with the individual’s spouse on December 31) at the time the expenses were incurred.
- The childcare services were provided in Canada by a person resident in Canada, unless the individual was living outside Canada temporarily.
- The childcare expenses were incurred while the individual (or the individual’s spouse on December 31) was
- carrying out the duties of an office or employment;
- actively carrying on a business;
- practising a profession;
- actively seeking employment;
- attending an educational institution full time or part time;
- carrying out research or work of a similar nature for which the individual (or the individual’s spouse on December 31) had received a grant;
- receiving benefits from the Québec parental insurance plan or benefits related to a birth or an adoption under the federal government’s employment insurance plan or a plan established by a province.
Eligibility of the child
A child in respect of whom a credit is claimed must meet one of the following conditions:
- have been born after December 31, 1995;
- regardless of his or her age, have an infirmity and be the individual’s dependent (or the dependent of the individual’s spouse on December 31) during the taxation year for which the credit is being claimed.
The child may be a child of the individual (or of the individual’s spouse on December 31), or a dependent of the individual (or of the individual’s spouse on December 31) whose net income (line 275 of his or her income tax return) is $7,200 or less.
Depending on family income, the tax credit rate varies from 26% to 75% of qualifying childcare expenses paid by the parents. Advance payments of the tax credit are made no later than the 15th day of each month.
Annual limit on qualifying childcare expenses
There is an annual limit on qualifying childcare expenses, based on the child’s age and whether or not the child has an impairment:
- For children with a severe and prolonged impairment in mental and physical functions, the limit is $10,000.
- For children born after December 31, 2005, the limit is $9,000.
- For children born after December 31, 1995, the limit is $4,000.
