Claiming child care expenses (special cases) and the tax credit for children's activities
Test your knowledge
Question 1
Sorry, that's incorrect
In these situations, the person with the higher net income claims the entire amount of the childcare expenses or the amount is shared between the person with the higher net income and the person with the lower net income. The tax software automatically calculates the amount of the child care expenses deduction for each eligible person.
That's correct
In these situations, the person with the higher net income claims the entire amount of the childcare expenses or the amount is shared between the person with the higher net income and the person with the lower net income. The tax software automatically calculates the amount of the child care expenses deduction for each eligible person.
Question 2
Sorry, that's incorrect
The tax credit for the physical activities or artistic, cultural or recreational activities of an eligible child is 20% of eligible registration or membership fees. If the child has a severe and prolonged impairment in mental or physical functions, the fees cannot exceed $1,000, for a maximum tax credit of $200. In other cases, eligible expenses cannot exceed $500 per child, for a maximum tax credit of $100.
That's correct
The tax credit for the physical activities or artistic, cultural or recreational activities of an eligible child is 20% of eligible registration or membership fees. If the child has a severe and prolonged impairment in mental or physical functions, the fees cannot exceed $1,000, for a maximum tax credit of $200. In other cases, eligible expenses cannot exceed $500 per child, for a maximum tax credit of $100.
Instructions
- Open the UFile CVITP software
- Review the background information and slips required (tax slips, receipts, etc.). Enter all the necessary information into the required section of the tax software
- Once completed, compare your results with the solution provided
- You don't have the same results? Consult the Reminder of key points of the tax software as needed
- Check out the Takeaway points at the end
| Category | Information |
|---|---|
| Family Head | Mike Webb |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 rue Principale City QC X0X 0X0 |
| Telephone number | 450-444-4444 |
| Date of birth (DOB) | June 21, 1977 |
| Marital status | Married: Alice Bonaventure since November 10, 2009 SIN: 000 000 000 DOB: June 21, 1980 |
| Dependant | Alex Webb (son) |
Details
- Mike and Alice own their home and have a child under 18, Alex
- They are not covered by a private group insurance plan
- Mike paid $500 for Alex to participate in a hockey team and $100 for music lessons.
- Mike did not claim the advance payments for the tax credit for child care expenses.
- Alex shows symptoms of an autism spectrum disorder. Form T2201, Disability Tax Credit Certificate, is already approved by the CRA.
- Information about Alex’s impairment was also sent to Retraite Québec for the Family Allowance. His parents do not receive the Supplement for a Handicapped Child Requiring Exceptional Care.
- Alice had surgery during the year to remove kidney stones. She has a doctor’s note confirming that she was in the hospital for one week after the surgery and was confined to a bed for another two weeks at home.
- Mike is claiming the solidarity tax credit for the couple.
Slips required
T4 – Statement of Remuneration Paid – Marché ABC for Mike
Text version for the above image
T4 – Statement of Remuneration Paid
Protected B
Employer's name: Marché ABC
Employee's name and address:
Last name: Webb
First name: Mike
123 Principale
City QC X0X 0X0
Box 10: Province of employment: QC
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 32,760.00
Box 17: Employee's QPP contributions – see over: 1,872.52
Box 18: Employee's EI premiums: 432.38
Box 20: RPP contributions: 600.00
Box 52: Pension adjustment: 1,200.00
Box 55: Employee's PPIP contributions – see over: 161.72
Box 22: Income tax deducted: 1,647.88
Box 24: EI insurable earnings: 32,760.00
Box 26: CPP/QPP pensionable earnings: 32,760.00
Box 45: Employer-offered dental benefits: 1
Box 56: PPIP insurable earnings: 32,760.00
RL-1 – Revenus d'emploi et revenus divers (Employment and other income) – Marché ABC for Mike
Text version for the above image
Relevé 1 Revenus d'emploi et revenus divers
Box A– Revenus d'emploi: 32,760.00
Box B.A– Cotisation au RRQ: 1,872.52
Box C– Cotisation à l'assurance emploi: 432.38
Box D– Cotisation à un RPA: 600.00
Box E– Impôt du Québec retenu: 1,824.42
Box G– Salaire admissible au RRQ: 32,760.00
Box H– Cotisation au RQAP: 161.72
Box I– Salaire admissible au RQAP: 32,760.00
Numéro d'assurance sociale du particulier: 000 000 000
Nom de famille, prénom et adresse du particulier:
Webb, Mike
123 rue Principale
Ville QC X0X 0X0
Nom et adresse de l'employeur ou du payeur:
Marché ABC
RL-24 – Frais de garde d'enfants (Child care expenses) for Mike
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Relevé 24 Frais de garde d'enfants
Nom de chacun des enfants
Nom de famille: Webb
Prénom: Alex
Box A– Date de naissance: 2015 05 10
Box C– Total des frais payés: 1,500.00
Box E– Frais donnant droit au crédit d'impôt: 1,500.00
Box G– Numéro d'assurance sociale de la personne qui a payé les frais de garde: 000 000 000
Box H– Numéro d'identification du fournisseur des services de garde: 12345678
Nom de famille, prénom et adresse de la personne qui a payé les frais de garde:
Webb, Mike
123 rue Principale
Ville QC X0X 0X0
Nom et adresse du fournisseur des services de garde:
Service de Garde Monk
456 rue Principale
Ville QC X0X 0X0
RC210 – Advanced Canada workers benefit (ACWB) statement for Mike
Text version for the above image
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Webb, Mike
123 Principale
City QC X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00
T4 – Statement of Remuneration Paid – 125678 Canada limitée for Alice
Text version for the above image
T4 – Statement of Remuneration Paid
Protected B
Employer's name: 125678 Canada limitée
Employee's name and address:
Last name: Bonaventure
First name: Alice
123 Principale
City QC X0X 0X0
Box 10: Province of employment: QC
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 15,600.00
Box 17: Employee's QPP contributions – see over: 791.52
Box 18: Employee's EI premiums: 205.92
Box 22: Income tax deducted: 815.76
Box 24: EI insurable earnings: 15,600.00
Box 26: CPP/QPP pensionable earnings: 15,600.00
Box 45: Employer-offered dental benefits: 1
Box 55: Employee's PPIP contributions – see over: 77.04
Box 56: PPIP insurable earnings: 15,600.00
RL-1 – Revenus d'emploi et revenus divers (Employment and other income) – 125678 Canada limitée for Alice
Text version for the above image
Relevé 1 Revenus d'emploi et revenus divers
Box A– Revenus d'emploi: 15,600.00
Box B.A– Cotisation au RRQ: 791.52
Box C– Cotisation à l'assurance emploi: 205.92
Box E– Impôt du Québec retenu: 908.64
Box G– Salaire admissible au RRQ: 15,600.00
Box H– Cotisation au RQAP: 77.04
Box I– Salaire admissible au RQAP: 15,600.00
Numéro d'assurance sociale du particulier: 000 000 000
Nom de famille, prénom et adresse du particulier:
Bonaventure, Alice
123 rue Principale
Ville QC X0X 0X0
Nom et adresse de l'employeur ou du payeur:
125678 Canada limitée
Compte de taxes municipales (municipal tax bill) for Mike and Alice
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Compte de taxes municipales
Débiteur(s) du compte:
Mike Webb
Alice Bonaventure
Emplacement de la propriété: 123 Principale
Valeur(s) imp. inscrite(s) au rôle: 555,800
Total du compte: 4,769.88
Reminder of key points of the tax software
Note
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
Mike's interview
- Click Revenu Québec questions in the left-side menu
- Select Yes for the question Do you wish to apply for the Quebec solidarity tax credit?
Employment income T4 and RL-1 slips
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4 and RL-1 (Relevé 1) income earned in Quebec with QPP contributions
- Enter the amounts from the individual's T4 and RL-1 slips into the corresponding fields
Child care expenses - special cases
- Click Interview setup in the left-side menu
- Tick the box next to Child care (special cases) in the Parents and children section
- Click Child care (special cases) in the left-side menu
- Click the + sign next to A special situation allows you to claim child care expenses even though your earnings are higher than your spouse’s in the Child care deduction section
- Enter the number of weeks during the year when any of the special cases listed applied to their situation
Additional steps to consider
Ensure that you have:
- answered questions related to the Quebec prescription drug insurance plan
- answered the questions related to the solidarity tax credit
- entered the amounts from RC210 slip
Alice's interview
- Click Revenu Québec questions in the left-side menu
- Select No for the question Do you wish to apply for the Quebec solidarity tax credit?
Employment income T4 and RL-1 slips
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4 and RL-1 (Relevé 1) income earned in Quebec with QPP contributions
- Enter the amounts from the individual's T4 and RL-1 slips into the corresponding fields
Additional steps to consider
Ensure that you have:
- Answered questions related to the Quebec prescription drug insurance plan
Alex's interview
- Click add dependant and enter the identification information for Mike and Alice's child. The Relationship and Date of birth (dd-mm-yyyy) fields must be completed
- Select Let MaxBack decide for the questions Who should claim this dependant on the Quebec return? and Does this taxpayer require a tax return?
- Click Medical and disability in the left-side menu
- In the Disability deductions, caregiver section, click the + sign next to Infirmity and disability amounts for the dependant*
- Enter the applicable information into the Name or description of dependant’s infirmity: field
- Select Claim disability amount (default) for the question Is the dependant eligible for the disability amount on federal line 31600?
- Select Yes for the question Does the dependant’s infirmity provide entitlement to the Canada caregiver amount?
- Do not enter anything in the Quebec section.
- To transfer the disability tax credit at the federal level, leave selection as Let MaxBack decide for the question Who should claim this dependant's unused disability amount?
- Select Full unused amount for the statement Indicate the amount to claim
- Click Child care in the left-side menu
- Click the + sign next to Daycare (includes day camp)
- On the Child care expenses – Daycare page, enter the information from the RL-24 slip into the corresponding fields
- Remember to enter the name, address and identification number of the daycare
Tax credit for children's activities
- Click Fitness and recreation in the left-side menu
- On the Quebec – Tax Credit for children’s activities page, under the Eligible fitness and recreational expenses for this dependant statement:
- enter the activity’s description
- enter the activity’s amount into the following field
- Click Children’s arts amount in the left-side menu
- On the Quebec – Tax Credit for children’s activities page, under the Fees paid relating to the cost of artistic, cultural, recreational, or developmental activity statement:
- enter the activity’s description
- enter the activity’s amount into the following field
Takeaway points
Spouse or common-law partner amount
- Mike is entitled to the spouse or common-law partner amount on line 30300 of the federal tax return because of Alice's low income.
Canada caregiver amounts and Tax credit for caregivers
- Mike is entitled to the Canada caregiver amounts for his son Alex, on line 30500 of the federal tax return.
- The tax credit for caregivers is for adults 18 or older. This means that Mike cannot claim it in his Quebec income tax return regarding his son, Alex.
- However, Retraite Québec may pay a supplement to the Family Allowance. For more information, refer to A handicapped child on the Retraite Québec website.
Disability tax credit and Amount for severe and prolonged impairment in mental or physical functions
- Mike is entitled to the disability amount transferred from a dependent on line 31800 of the federal tax return.
- The amount for a severe and prolonged impairment in mental or physical functions is for adults 18 or older. This means that Mike cannot claim it in his Quebec income tax return regarding his son, Alex.
- However, Retraite Québec may pay a supplement to the Family Allowance. For more information, refer to A handicapped child on the Retraite Québec website.
Child care expenses deduction (special cases) and Tax credit for childcare expenses
- In special cases, the child care expenses deduction (federal) is claimed entirely by the spouse with the higher net income or shared with their spouse:
- in this case, Mike and Alice share the deduction because Alice was temporarily hospitalized and later confined to a bed.
- The couple will receive the tax credit for childcare expenses (provincial):
- in this case, Mike is the one claiming the credit in his Quebec income tax return. If they want to, Mike and Alice can decide to split the credit between themselves.
Tax credit for children's activities
- The couple can claim this refundable tax credit for the physical activities or artistic, cultural or recreational activities of an eligible child.
- Since Alex has a severe and prolonged impairment in mental or physical functions, his eligible expenses are increased by $500, making the credit higher.
Solidarity tax credit
- In the case of a couple, only one spouse can claim the solidarity tax credit (provincial).
Quebec prescription drug insurance plan
- Both spouses must pay the Quebec prescription drug insurance premium. Note that the amount on line 447 can be entered as medical expenses on the federal tax return for the following year.