Child Care Tax Credit | Day Care Tax Credit Canada

Child Care Tax Credit | Day Care Tax Credit Canada

Child care costs are not claimed as a non-refundable tax credit, but as a deduction from income on line 214 of the personal tax return. A non-refundable tax credit is always at the lowest tax rate (except in Qu├ębec), but a reduction of income would save tax at the taxpayer’s marginal tax rate.

Eligible Child Care Expenses include day-care centres and day nursery schools, some individuals providing child care services, day camps and day sports schools, educational institutions such as private schools (the portion of tuition costs relating to child care services), boarding schools, and overnight sports schools and camps.

Other Child Care Tax Credit and Benefit Programs:

  • Canada Child Tax Benefit (CCTB): The Canada Child Tax Benefit is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18.
  • National Child Benefit Supplement (NCBS): The National Child Benefit is a joint initiative of the federal, provincial, and territorial governments.
  • Child Disability Benefit (CDB): a tax-free benefit for families who care for a child under age 18 who qualifies for the disability amount.
  • Universal Child Care Benefit (UCCB): The UCCB is designed to help Canadian families, as they try to balance work and family life, by supporting their child care choices through direct financial support. The UCCB is for children under the age of 6 years and is paid in instalments of $100 per month per child.