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.
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:
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!