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
Non-qualifying childcare expenses Expenses that do not qualify for the refundable tax credit for childcare expenses include
Spouse on December 31 An individual’s spouse is the person who was either of the following:
Clientele Individuals who have paid qualifying childcare expenses for an eligible child.
Conditions All the following requirements must be met:
Eligibility of the child A child in respect of whom a credit is claimed must meet one of the following conditions:
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 $7,450 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 expensesThere is an annual limit on qualifying childcare expenses, based on the child’s age and whether or not the child has an impairment:
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