What child-related tax benefits can Canadian families claim?

Canadian families can claim several child-related tax benefits and deductions. These include child care expenses and other deductions aimed at offsetting the costs of raising children. For specific details, it is recommended to consult a tax professional.

What is the process for claiming child care expenses on my Canadian tax return?

To claim child care expenses on your Canadian tax return, you must have incurred eligible costs for services such as daycare, nannies, or after-school programs. It is crucial to maintain accurate records and receipts for all expenses to ensure a smooth claim process. Consulting a tax professional can help ensure you claim all eligible deductions.

What tax deductions or credits are available for children's activities or educational expenses in Canada?

While direct federal deductions for children's activities or education are limited, Canadian families may find certain provincial programs or credits available. It's recommended to consult the latest tax guidelines or a tax professional for personalized advice on specific eligible deductions.

What is the purpose of the Universal Child Care Benefit (UCCB) for families?

The Universal Child Care Benefit (UCCB) was a taxable benefit from the Canadian government, designed to assist families with the financial costs of raising children under 18 years old. Although it has since been replaced by other programs, it provides context for understanding current child related tax benefits and family support.

Child Related Tax Benefits & Deductions for Families

Explore child related tax benefits, expenses, and deductions for Canadian families in 2015. Learn about the Universal Child Care Benefit and other tax advantages.

There’s great news for 2015 for Canadians with children. Stephen Harper has announced a “child care benefit boost” – which includes an increase to, or return of, the monthly Universal Child Care Benefit cheques and an increase to the amount taxpayers can deduct for child care expenses and the child fitness credit.

Changes to the UCCB for 2015 – Enhanced Universal child care benefit

The universal child care benefit (UCCB) will increase to:

$160 (from $100) per month for each child under six, and
$60 (from $0) per month for each child between six and seventeen.

The UCCB is paid out monthly by cheque or direct deposit. While the changes to the UCCB will be effective January 2015, the first seven months’ difference will be paid out in July 2015. This means:

for children under six, you’ll receive $100 per month from January to June, $520 in July, and $160 per month starting in August.
for children between six and seventeen, you’ll receive $420 in July and $60 per month starting in August.

The enhanced Universal Child Care Benefit (UCCB) is not a pure win for taxpayers as it will replace the existing Child Tax Credit. This credit, which will be eliminated in 2015, is currently based on $2,255 per child which at the 15% credit rate amounts to $338 per child.

Child care expenses

The child care expense deduction, which allows child care expenses to be deducted from income when those expenses are incurred to earn employment or business income or to pursue education, will be increased by $1,000 effective for 2015 as follows:

$8,000 (from $7,000) per child under age 7
$5,000 (from $4,000) for each child aged 7 through 16 (and for infirm dependent over age 16)
$11,000 (from $10,000) for children who are eligible for the Disability Tax Credit

Child fitness tax credit to be doubled and made refundable

This credit was created in 2006 to help with the cost of children’s sports activities. Starting in 2015, the credit will be refundable, which lets low-income families take advantage of the credit. Previously, with a non-refundable credit, parents whose incomes were too low to pay taxes didn’t benefit from the credit but now they will.

The maximum expense that can be claimed will go from $500 to $1,000 per child. Parents can get back up to 15 per cent of their children’s registration or membership fees, a benefit of up to $150. The tax credit applies to children under 16, or under 18 if they’re eligible for the disability amount.

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