Tips & Advice

Caring for kids merits tax credits

Giving kids proper care can be a costly for parents. Many parents work full time or continue their education in order to ensure they can provide financially for their families. Yet being away from home may mean they incur extra expenses in babysitters and other care providers. The CRA understands this predicament many parents face.

If you pay someone to take care of your children while you are at work or going to school, you can claim child care expenses on your 2009 returns. For married parents, the lowest-income spouse claims these child care expenses, with parents going to school proving the exception – a spouse who works all day claims the expenses instead of the student.

You might be pleasantly surprised to learn how many expenses are covered with this credit. Eligible child care expenses range from babysitters’ fees to day camps costs.

The maximum amount a parent can claim for children under the age of seven is $7,000 per child, and the maximum amount for children between ages seven and 16 is $4,000 per child. If your child has a disability, these amounts can increase to $10,000.

Parents can visit the CRA’s website to learn more about which expenses they can claim on their tax returns – due April 30.