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New 2019 Childcare tax credit (CARE) Posted on Feb 23, 2020

NEW CHILDCARE REFUNDABLE TAX CREDIT in ON. This one is on top of the childcare deduction that was available in previous years. If family income is under $150K, families can claim a % of their eligible childcare expenses as tax credit.
Eligible childcare expenses are nannies, daycares, camps etc. Eligible childcare expense has a maximum per child and is dependent on child's age. It is important to note that, if one spouse has no income, the tax credit will be zero as eligible childcare expense formula has 3 components: actual expense, maximum amount per child per age, 2/3 of earned income of lower income spouse. If you meet the requirments, don't miss out this tax season!

Eligible expenses include:

  • caregivers providing child care services
  • day nursery schools and child care centres
  • boarding schools, overnight sports schools or camps where lodging is involved
  • educational institutions (for the part of fees that relate to child care only)
  • day camps and sports schools where the primary goal of the camp is to care for children

Ineligible expenses include:

  • medical or hospital care, clothing or transportation costs
  • fees related to education costs at an educational institution (such as tuition)
  • fees for leisure or recreational activities (such as tennis lessons)
  • child care services provided by the eligible child’s parent or a person under 18 years of age who is connected by a blood relationship (such as a sibling)

More info here: https://www.ontario.ca/page/ontario-child-care-tax-credit#section-3