We have a client with 2 children - one is 2 the other 2 months - and a child care receipt for the older child for $9400. Profile allows $9400 but should we override and only claim $7000?

Answer

ProFile is calculating maximum allowable based on two "eligible children", in this case maximum allowable is $14,000 i.e. $7,000 X 2, taxpayer paid 9400, less than maximum allowable

Section 63(3) of the ITA defines an "eligible child" and there is no reference to actually having paid child care expenses on behalf of that child in order to be considered an "eligible child".  In fact, T778 Part A is clear that you should list all your eligible children, "even if you did not pay child care expenses for all of them". 

Was this answer helpful? Yes No
Default user avatars original
Employee

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: