Child Care Payment and Self Employed Parent

Vilva · ‎April 21, 2021

One Parent has over 100k Employment Income

And other one has Loss for his Business Activity ( Fee earned say around $9,000)

According to CRA, only lower income parent can claimed Child care expenses.

**Actual payment made to Daycare 12,000 for the year

**Statuary Limit is $8,000

**(2/3) of Net Earned Income for Self Employed Parent is 0 (in this case)

Least amount in three item is 0

My Question is that tough both are working and paying daycare, Are they going to get nothing for daycare expenses?

janisbossenberry · ‎April 22, 2021

Yes, that is correct. They end up without a deduction unless the spouse with the lower income qualifies under one of the exemptions under Part C or D, in which case the higher income spouse can get the deduction.

hewi · ‎April 23, 2021

The wife is also likely getting a full spousal credit.