Child Care Expenses Deduction (T778)

In Canada, the cost of child care varies depending on factors such as location, age of the child, and type of child care (e.g. in-home care, daycare center). On average, families can expect to pay between $1,000 and $2,000 per month for child care.

The Canadian government offers some financial assistance to help families with the cost of child care through the Canada Child Benefit (CCB) program. The CCB provides a tax-free monthly payment to eligible families to help with the cost of raising children under the age of 18. The amount of the benefit is based on factors such as family income and the number of children in the family.

In addition, some provinces and territories offer their own programs and subsidies to help families with the cost of child care. It's important to note that the availability and specifics of these programs may vary and change over time, so it's always best to check with the government for the most up-to-date information.

On a separate note child care costs are sums you or spouse paid to have somebody care for a qualified kid with the goal that you or your spouse could acquire pay from work, carry on a business either alone or as a functioning partner, go to class under the circumstances distinguished under an Educational Program or continue research or comparative work, for which you or the other individual got an award. The child must live with you or your spouse when the cost was caused for the cost to qualify. You can claim the fees paid to a child care provider as an eligible child care expense subject to certain limitations and conditions.

Read more at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21400-child-care-expenses.html

Have questions your eligibility or if the deduction can be claimed? Want to know more on how to file and claim in general?

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Disclaimer: This article only provides general information which is not construed as professional advice. Readers seeking professional advice must consult an experienced and a qualified professional in the respective field.