Reporting advance payments and claiming childcare expenses
Test your knowledge
Question 1
Sorry, that's incorrect
For the federal tax return, the spouse with the lower net income must claim the deduction for child care expenses, unless a special situation exists as described on form T778, Child Care Expenses Deduction.
That's correct
For the federal tax return, the spouse with the lower net income must claim the deduction for child care expenses, unless a special situation exists as described on form T778, Child Care Expenses Deduction.
Question 2
Sorry, that's incorrect
The individual who received the advance payments must enter the amount received, regardless of whether they or their spouse is claiming the credit.
That's correct
The individual who received the advance payments must enter the amount received, regardless of whether they or their spouse is claiming the credit.
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
| Categories | Datas |
|---|---|
| Family head | Mike Webb |
Social insurance number (SIN) |
000 000 000 |
Address |
123 rue Principale |
Telephone number |
450-444-4444 |
Date of birth (DOB) |
June 21, 1987 |
Marital status |
Married: |
Dependants |
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
- Alice's mother, Suzanne, lives with them. She has no income. For the purpose of this exercise, we will not be preparing her tax returns. Suzanne is not covered by a private group insurance plan
- Mike received advanced Canada workers benefit payments
- Mike is claiming the solidarity tax credit
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
Text version for the above image
Relevé 24 Frais de garde d'enfants
Nom de chacun des enfants
Nom de famille: Webb
Prénom: Alex
Box A – Date de naissance: 2023 05 10
Box B.1 – Nombre de jours de garde: 195
Box C – Total des frais payés: 5,850.00
Box E – Frais donnant droit au crédit d'impôt: 5,850.00
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:
Garderie 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
RL-19 – Versements anticipés de crédits d'impôt (Advance payments of tax credits) for Mike
Text version for the above image
Relevé 19 Versements anticipés de crédits d'impôt
Box C– Frais de garde d'enfants: 4,230.00
Numéro d'assurance sociale: 000 000 000
Nom et adresse du destinataire:
Webb, Mike
123 rue Principale
Ville QC X0X 0X0
Nom et adresse du payeur:
Revenu Québec
T4E(Q) – Statement of Employment Insurance and Other Benefits for Alice
Text version for the above image
T4E(Q) – Statement of Employment Insurance and Other Benefits
Protected B
Box 14: Total benefits paid: 650.00
Box 22: Income tax deducted: 65.00
Box 23: Quebec income tax deducted: 78.00
Box 12: Social insurance number: 000 000 000
Box 36: Other information (see the next page): 650.00
Recipient's name and address:
Bonaventure, Alice
123 Principale
City QC X0X 0X0
Payer's name:
Ministère du Travail, de l'Emploi et de la Solidarité sociale
RL-6 – Régime québécois d'assurance parentale (Quebec parental insurance plan) for Alice
Text version for the above image
Relevé 6 Régime québécois d'assurance parentale
Box A– Prestations: 650.00
Box G– Impôt du Québec retenu: 78.00
Nom de famille, prénom et adresse du particulier:
Bonaventure, Alice
123 rue Principale
Ville QC X0X 0X0
Numéro d'assurance sociale du particulier: 000 000 000
Nom et adresse de l'organisme
Ministère du Travail, de l'Emploi et de la Solidarité sociale
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
Text version for the above image
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
Solutions
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?
Quebec prescription drug insurance plan
- Click Quebec prescription drug insurance plan in the left-side menu
- Select 3 – Québec prescription drug insurance plan, all year for Specify the situation that applied to you in 20XX for the purpose of the Quebec prescription drug insurance statement
- Select No for the question Do you wish to file a joint Schedule K (and pay any Quebec prescription drug insurance premium for your spouse)?
- Click Solidarity tax credit in the left-side menu
- Complete section A. Information about you based on the individual's situation:
- select Owner for the question Were you or your spouse tenants (received a RL-31) or owners on December 31, 20XX?
- select the option Yourself and your spouse for Please select who were the owners of your dwelling statement
- enter the roll number or identification number shown on the individual's municipal tax bill: 1234567
- enter 2 for Total number of owners living in the dwelling statement
- For section B. Information about your spouse:
- select Yes for the question Did you have a spouse on December 31, 20XX?
- select Yes for the question Did you live with your spouse on December 31, 20XX?
- select No for the question Was his or her principal residence located in a northern village?
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
Advanced Canada workers benefit
- Click Other information slips in the left-side menu
- Click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500]
- Enter the amounts from the individual's RC210 slip in the corresponding fields
Advance payments child care expenses
- Click Other information slips in the left-side menu
- Click the + sign next to RL-19 – Advanced payments
- Enter the amounts from the individual's RL-19 slip into the corresponding fields
-
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-1slips
- 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
Parental insurance benefits T4E(Q) and RL-6
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4E – Employment Insurance and other benefits (RL-6)
- Select 0% from the drop-down menu of Repayment rate Box 7 statement
- Enter the amounts from the individual's T4E(Q) and RL-6 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 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. Do not forget to enter the name, address and identification number of the daycare
-
Suzanne's interview
- Repeat the same steps you did for Alex and enter Suzanne's identification information
- Select No for the question Did this dependant have any income in 20XX?
- Select No for the question Does this taxpayer require a tax return?
Quebec prescription drug insurance plan
- Click Quebec prescription drug insurance plan in the left-side menu
- Select 3 – Québec prescription drug insurance plan, all year for the statement Specify the situation that applied to you in 20XX for the purpose of the Quebec prescription drug insurance:
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 employment amount and Deduction for workers
- Because both spouses earned eligible employment income, the software added the Canada employment amount and the deduction for workers (provincial) for both of them
Canada workers benefit amount and Work premium
- The software automatically calculated the Canada workers benefit amount (federal) and the work premium (provincial) for the couple
- The Canada workers benefit amount (line 45300) and the total amount for the Canada workers benefit advance payments (line 41500) are reported on Mike's federal tax return
- The couple met the conditions for the work premium. UFile generates Schedule P automatically (provincial)
Canada caregiver amounts and Tax credit for caregivers
- There are no Canada caregiver amounts (federal) for dependants because they do not meet eligibility criteria
- Because they housed an eligible relative (Alice's mother), the couple will receive the tax credit for caregivers (provincial)
Child care expenses deduction and Tax credit for childcare expenses
- The deduction for child care expenses (federal) was awarded to the spouse with the lower net federal income, which is Alice
- The couple will receive the tax credit for childcare expenses (provincial)
Solidarity tax credit
- In 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 2025
Advance payments of the tax credit for child care expenses
- Since Mike received the RL-19 slip, the advance payments of the tax credit for child care expenses must be entered in his provincial tax return. For this reason, MaxBack gave Mike the tax credit