In Canada how much are child care receipts worth for income tax?

Question

How much can my family expect to save on taxes if we ask our sitter for a receipt for last year? Our kids are 6 and 10 and we paid about $2300 last year for occasional child care. My husband and I both work, though my hours were irregular/part time. Are the savings worth it?

{Sorry I didn't say earlier}: I live in Ontario, my husband made near $58000 and I made near $22000.

score 4 · Answer 1 · answered Jan 02 '11 at 18:53

The tax benefit from deducting child-care expenses is based on the marginal (top) tax rate, because you exclude the amount from your net income. But it is the spouse with the lower net income who has to take the deduction.

$22,000 puts you in the 15% federal bracket and the 6.05% Ontario bracket, so you'll save 21% of the claimed amount or approximately $500.

score 0 · Answer 2 · edited Aug 02 '11 at 20:16

0

Based on your tax bracket, you'll save approximate $700 in taxes.

edited Aug 02 '11 at 20:16

Alex B

17,394
11
58
108

answered Jan 05 '10 at 04:33

Allan

117
3

In Canada how much are child care receipts worth for income tax?

2 Answers2