Claiming Expenses for Childcare in Calgary

Many parents across Canada were thrilled when it was announced that the government will now allocate federal funding towards childcare payments, allowing you to claim expenses for childcare in Calgary. To provide relief for long-term childcare spending, $7 billion will be budgeted for this purpose over 10 years, with a current commitment of $500 million. It will increase by $5 million between 2018-2019 and 2020-2021. No increase will be done between 2021-2022, but funding will grow to $725 million in 2022-2023 and rise each year until it hits $870 million in 2026-2027. The program is intended to make improvements in childcare access, affordability and quality. Another change involving the improvement of national childcare focuses on the maternity and parental Employment Insurance programs. The current 50-week limit has been lengthened to 18 months. 

Paying for Preschool in Calgary: What You Can Claim

Are you unsure about what you can claim, who can make claims or what the claims entail? Here are some guidelines put together by A Child's View Learning Centre to help answer your questions about claiming expenses for daycare and/or preschool in Calgary:

  • Childcare expenses are an amount of money that you, the eligible child's parent, your spouse, common-law partner or another qualified individual pay to have a childcare provider watch the child so you can earn income from your job, manage a business (or serve as an active partner), attend school or complete grant research. There are specific conditions for each of the above situations, and in order for the expense to be deductible, the child in question had to be living with you when the money was paid. 
  • The child must be under 16 years of age at some point during the applicable year. This age limit doesn't apply if the child is mentally or physically handicapped.
  • To claim payments for childcare expenses, the childcare provider must be an eligible caregiver, an educational institution, a day camp or a day sports school where the purpose is to offer care for children. Boarding schools, overnight sports schools or other camps where lodging is provided are also acceptable. 
  • If the childcare services are provided by an individual, he or she can't be the child's parent or a person under 18 years old who is related to you. Other conditions also apply.
  • Payments that can't be claimed include medical care, hospital care, clothing and transportation. Tuition fees for an educational institution or recreational activities also can't be claimed as deductible expenses.

Please note that in order to properly complete your tax return, you must have a receipt detailing the services provided or the social insurance number of the individual childcare provider. The receipt needs to be under your name or that of your spouse or common-law partner. Unclaimed expenses from the previous year can't be used. Additionally, tax credit decisions are made at the federal and provincial level. The rules and eligibility criteria are subject to change at their discretion. 

Paying for child care is a big investment, and this program will help many parents find relief. Contact us for more information or visit the Canada Revenue Agency to learn more. To save yourself the hassle and the stress, please make sure you're fully informed before claiming any deductions!

Created by

Legal notice