Families, Lower income

Tax Tip: Why Child Care Expenses Claimed By The Lower-Income Spouse

If you have a child and live together with your spouse or common-law partner, you may be able to claim child care expenses. The Canada Revenue Agency allows you to claim up to $7,000 per year for children age 6 and under, and $4,000 per year for children between the ages of 7 and 15. The CRA requires that the parent with the lower amount of income claims the child care deduction. Child care expenses that are paid for by both spouses can be claimed by the lower-income spouse, which may help the lower-income spouse to avoid paying any income tax at all.