Very few people get excited around tax time, and its likely that you feel the same way. The whole process can be confusing, frustrating and downright unenjoyable. Do you have the correct information to submit? Are you taking advantage of the appropriate tax benefits for yourself and your family? Are you missing anything?
We’ve got you covered. H&R Block is at Westshore Town Centre to make the tax process that much easier for you and to take some of the stress away.
Questions about what child-related expenses are tax deductible and what are not is a big topic for parents. Every family is a little different, and what might apply to one family may not apply to another. To get you started with some basics, our friends at H&R Block were kind enough to put together this list of five useful things to know about childcare expenses:
Get your receipts together
The first step in making a proper claim is getting a receipt for your childcare expenses from your childcare provider. They must provide you with their Social Insurance Number (SIN) on the receipt, and without this receipt you can’t make a claim.
Who makes the claim
Often, the spouse who earns less must claim the childcare expenses on their tax return. The only situations that allow higher-income earning spouses to claim these expenses are when the lower-income spouse is in school, jail or in the hospital. Otherwise, the childcare expenses must be claimed by the lower-income spouse. Even if the lower income earner doesn’t need the deductions, the expenses cannot be transferred. If you’re a single parent, you’ll be claiming all of your childcare expenses on your return, or deciding with your child’s other parent who will be making the claim.
All in the family
If a parent (say your Mom or father-in-law) is caring for your children, you can claim the amount you pay them. However, they have to provide you with a receipt that includes their SIN, and report the money you’ve paid them as income on their return.
Minors don’t count
If you pay your 12-year-old to look after their brothers or sisters, this doesn’t count as an eligible childcare expense.
If your kids are signed up for camps, you can claim the childcare portion of their fees. Make sure you ask for a detailed receipt, as it’s only the childcare portion of the fees that are eligible.
It’s likely that you still have lots of questions, or perhaps your situation has changed over last year? It a great idea to speak with the tax specialists at H&R Block to make sure that you are aware of all the benefits that you qualify for. Call 250-474-2009 to make an appointment and be sure to get all your questions answered.
In most cases, your taxes are due to be submitted to Canada Revenue Agency by April 30. If you’re self-employed, your deadline isn’t until June 15, however be warned, any interest owing will be charged as of April 30 anyway.
Tax information sourced from www.hrblock.ca