Childcare expenses like daycare or day camps usually have to be claimed by the lower income spouse, so if that person doesn't have any income sometimes the expense goes to waste.
However sometimes the tax preparer (or tax software) hasn't asked a few questions like:
- was the lower income earner a student during the year?
- was the lower income person infirm (ill) for more than 2 weeks?
- was the lower income person in prison during the year?
We have made many corrections for people in this situation who were told that they couldn't claim their childcare or the tax software simply omitted it. Depending on the amount of the expense and the higher income earner's income, this change could get you back 25-40% of the value of the childcare expense.
Also, if in fact it can't be used as childcare, perhaps the expense would also qualify as an Arts Credit or Fitness Credit depending on the activity. In some cases when the expense isn't beneficial for one credit, it may qualify for the other.
Feel free to contact us to review your prior returns if you aren't sure if you have lost out on claiming childcare you thought you could claim.
www.painfreetaxes.ca
service@painfreetaxes.ca
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