Children and Families
The Federal and Ontario Children’s Fitness and Arts Tax Credit was eliminated.
Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is a NON-taxable benefit for children under the age of 18. It is income tested, meaning only families who fall below the income threshold will qualify. CRA has a handy benefit calculator on their site that can help you determine how much you may be eligible to receive.
RESP’s (Registered Education Savings Plans)
RESP’s help you save for your children’s post-secondary education. Contributions to these plans are NOT tax deductible and NOT reported on your income tax return. However, the income earned within the plan is not taxed until withdrawn, presumably by a child starting post-secondary studies who is in a much lower tax bracket than the parent or grandparent who made the contributions. The federal government will also contribute a grant based on a percentage of your annual contribution (to a maximum contribution of $2500 annually). The basic maximum annual grant of $500 is available to all contributors and additional grants are available to families with lower incomes. Details on how RESP’s work and the specifics of the Education Savings Grant program can be found here: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps.html
Canada Learning Bond
Available to families who are considered low income, whose children were born after January 1, 2004 and are named in an RESP. Eligibility is based on the number of children and net family income. Families with one to three children, and whose income is below $49,000, should qualify. This program adds money to an existing RESP. It is separate and in addition to the RESP – Education Savings Grant.
Learn more about saving for your children’s post-secondary education here: https://www.canada.ca/en/employment-social-development/services/learning-bond.html
Child Care Expenses
The maximum allowable claim for childcare costs is $8,000 per year for children under the age of 7 and $5,000 for children age 7 through 16. The maximum allowable claim for a child who is eligible for the disability tax credit is $11,000.
What qualifies as a legitimate childcare expense? Here is a list:
- Payments to babysitters (including family members if they report the income as taxable) where you have a name and SIN number for the sitter;
- Payments to daycare centres and nursery schools;
- Payments for after school programs and activities where the child would otherwise have to be in care;
- Camp programs: summer camp, March break camp, PD day camps, etc. NOTE: While both overnight and day camps qualify – there are limits to the eligible deductible cost of overnight camps.
- Keep in mind, the deduction is intended to help offset the cost of caring for children, enabling parents to work outside the home. Thus, weekend sports or other classes generally do not qualify.
Adoption Tax Credit
Parents who have completed the adoption of their children in a tax year are eligible to claim a tax credit based on the costs of adoption. This non-refundable credit is set at a maximum of $16,563 per child. The eligible costs include payments for legal and administrative costs of adopting along with any required counseling or medical expenses and travel costs (if your adoption process involved travel). Keep all receipts and claim all in the year the adoption is finalized.