day Care expenses for single and dual earners

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Gapodi
Member since: Aug 04

Posts: 186
Location:
Post ID: #PID

Posted on: 14-04-08 15:44:33

Am I correct in understanding that only dual earner couples get a break on day care expenses as the spouse with lower income gets the tax savings?
Doesn't that mean that for single income family, since one spouse makes $0.00, there is NO break?
Can someone pls clarify and confirm bad news

Pramod Chopra
Member since: Sep 03

Posts: 1284
Location: Pickering, ON
Post ID: #PID

Posted on: 14-04-08 20:08:19

Quote:
Originally posted by Gapodi

Am I correct in understanding that only dual earner couples get a break on day care expenses as the spouse with lower income gets the tax savings?
Doesn't that mean that for single income family, since one spouse makes $0.00, there is NO break?
Can someone pls clarify and confirm bad news

Your hunch is right. No break for single income families where one spouse is not working. The idea is, When one spouse is not working, he/she better take care of the kids.

However, in certain circumstance, the higher income earner can also claim the child care expenses if the lower or nil income earner spouse was;

1. Enrolled in a full time course,
2. Physically or mentally incapable of taking care of the child(ren)
3. Confined to prison or similar institution OR
4. There is some breakdown in relationship.

For details of these circumstances or conditions, Please follow this

http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines206-236/214/who/menu-e.html

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Gapodi
Member since: Aug 04

Posts: 186
Location:
Post ID: #PID

Posted on: 15-04-08 10:01:17

Thanks for confirming the bad news Pramod Ji
I was sure they would expect the other spouse staying at home to manage the kids

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day Care expenses for single and dual earners

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