CRA Tax Tip: Child care

Canada Revenue Agency has added the following tax tips to its web site.

Canadians are reminded that you may be eligible to claim payments for child-care expenses such as nursery school, day-care, day camps, boarding schools, and sports schools. Expenses can be claimed if you or your spouse incurred the expenses in order to work, carry on a business, or attend school.

Also, if your child is under the age of 18 and works part time or full time, he or she may be entitled to a refund on taxes withheld. There is even a benefit to filing wether tax has been withheld or not. Filing an income tax return to report the income earned will increase your child’s RRSP contribution limit for future years.

For more information, see the CRA web site at the following addresses:

Tax tip: Claim the care for your kids
http://www.cra-arc.gc.ca/newsroom/taxtips/2005/0222kids-e.html

Tax tip: Cheque for your child
http://www.cra-arc.gc.ca/newsroom/taxtips/2005/0308child-e.html