If you incur day care expenses or hire a babysitter in order to go to work or school, you are eligible to claim child care expenses on your personal tax return. With married or common-law partners, the spouse with the lower net income must make the claim.
The maximum dollar amount you may claim for a child under the age of 7 is $7,000. This is reduced to $4,000 for children between the ages of 7 and 16. The maximum amount you may claim for a disabled child is $10,000, regardless of age. These childcare expenses are claimed as a deduction from your income and therefore your taxes payable at your marginal tax rate.
Deductible childcare expenses include:
- Costs related to nursery schools, day cares and babysitting services
- Private Schools (the portion of tuition attributable to child care services)
- Overnight camps and boarding schools
- generally, childcare payments made to any person who is a deemed resident in Canada except: the father or mother of the child, a person under the age of 18 who is related to a parent of the child (for example, a sibling) or a supporting person who either claims a dependant deduction for the child or deducts the child care expenses of the child
For more information, please go to Canada Revenue Agency