Child Care Expense Deductions
This deduction helps families deduct child care expenses from their income earned. Many families incur expenses throughout the year to have someone look after their child in order to earn income from employment, operate a business, attend school, or conduct research. The current maximum amount that can be claimed under the CCED each year is limited to the following:
- The total amount spent on child care expenses;
- 2/3 of the lower-income taxpayer’s earned income; and
- The total of the maximum dollar limits for all children, that is $7,000 per child under age 7, $4,000 for each child aged 7-16 (and for infirm dependent children over age 16), and $10,000 for children who are eligible for the Disability Tax Credit, regardless of their age.
The Government proposes to increase the dollar limits of the CCED by $1,000. These changes would apply for the 2015 and subsequent taxation years. For more information, contact us!
