Parents – keep your receipts! When tax time comes in the Spring, it is always in your best interest to claim everything possible, for the optimal return, adjustment, or rebate on your taxes.
Keeping the receipts for expenses when it comes to the kids is a vital part of filing your taxes, and should start at the beginning of the school year. This includes childcare, some sports activities (if they have a care component to them), tutoring and more.
You may be entitled to specific credits, but without the documentation for them, the credit can be removed from your return altogether. Better safe than sorry! Pay attention to these expenses specifically:
Childcare
You can claim childcare expenses for kids up to 16 years of age!
Childcare can be: a daycare, a nursery school, sports school, day camps, babysitter, nanny, and overnight boarding school.
If you are issued a receipt from the school, or daycare, keep it! Some receipts don’t need to be submitted, but should be kept incase the CRA asks for them for reference.
If an individual like a babysitter or nanny is providing care that you are paying for, keep this in mind: If they have a social insurance number, record it, and get them to sign a receipt for that care. Parents can claim up to $8000 for kids under 7, and up to $5000 for kids under 16, and every little bit will count, and adds up over the year!
This can include: A couple of hours with the kids after school, or regular day care that is not arranged through an agency – anything that is paid, should have a receipt.
Tutoring and programs for children with learning disabilities
Although the arts credit that used to cover basic tutoring has been eliminated, there is another way.
If a medical practitioner (doctor) declares the tutoring necessary, you can claim it.
“A medical practitioner must certify in writing that the equipment, facilities or personnel specially provided by that school are needed because of the person’s physical or mental impairment” – CRA
This includes children with ADHD.
A way around the recently cut arts-tax-credit
Although the arts-tax-credit was cut, the activity your child is in may still be claimable if there is a care-component within the program. Check that the program meet the criteria as a child care expense – that is, parents pay for the program so they can earn income, go to school, etc.
Most sports programs will not quailify – but of the activity is required for child care purposes, then it does.
Teachers
Teachers – please know that you, too, can claim expenses – keep your receipts! Teachers can claim up to $1000 for any out of pocket supplies they are paying for!
Information for this article was pulled from the CRA website, and quotes from professionals as noted in Global News articles. It is advised to confirm directly with the CRA or your accountant which expenses you are eligible to claim. More information on child care expenses and deductions can be found on the CRA website.