How to Earn Aeroplan Points
Aeroplan is a well-known travel rewards program run by Air Canada. The Aeroplan program boasts millions of members and is considered Canada’s top trav...
Loans Canada: The Country's Best Loan Comparison Platform
Financial responsibilities and obligations are just one of the many things to consider when having children. From soccer programs, meals every day to school tuition for college or university, parents are faced with countless expenses when it comes to their children. Luckily, the Canadian Government recognizes the financial stress faced by parents when it comes to raising children. There are many tax credits and deductions parents can apply for to help offset the costs of raising children.
The child care expenses deduction is taken away from gross income if you use daycare or babysitters during your time at work or school. Depending on the child’s age, eligible deduction amounts vary per year. Furthermore, if your child has a disability, those expenses can be deducted as well, provided they meet the Canada Revenue Agency’s criteria.
Find out which receipts you should keep to file your taxes.
Here are a few examples of expenses that you can deduct related to caring for your child:
Check out these tax tips for low income earners.
Medical expenses for your children can be claimed as a deduction on your taxes. Additionally, you can claim birth-related expenses that were not covered perhaps by your provincial health plan or health insurance. When claiming medical expenses, keep in mind that:
Cover any unexpected medical expense with a personal loan.
The Canada Child Benefit is a non-taxable benefit for eligible families to help cover the cost of raising children under the age of 18. Paid upon registering after a child’s birth, the benefit stops automatically upon the child’s 18th birthday. Eligible parents must file income tax returns together to receive this benefit each year. If you are a single parent, the custody-bearing parent is the only parent who receives the benefit. In situations of shared custody, the benefit is split usually in half, or in another way depending on the custody agreement.
Check out how you can get a loan using your CCB.
To be eligible for the Child Disability Tax Credit Benefit, you and your child must meet the following qualifications:
For more information regarding eligibility, see the CRA’s website.
To calculate how much money you can receive through the Canada Child Benefit, check out the CRA’s claims calculator.
The Child Disability Benefit is also a non-taxable monthly benefit to parents that care for children with severe physical or mental impairments. In addition to receiving the Canada Child Benefit, parents with children that have disabilities are also eligible for the Child Disability Benefit. Eligibility requirements include those listed above for the Canada Child Benefit, as well as the following:
The child must be either
The child’s impairment must also meet all of the following requirements:
Depending on the severity of the child’s impairment, the amount of money a parent can receive varies. For the period of July 2020 to June 2021, you could get up to $2,886 ($240.50 per month) for each child who is eligible for the disability tax credit.
There are tax benefits parents are eligible to apply for regarding children’s activities, such as fitness.
Quebec Tax Credit for Children’s Activity – Parents can claim a refundable tax credit for costs incurred for fitness, cultural, or artistic activities for each of their children.
Yukon Children Fitness Tax Credit – Parents can claim up to $1000 on money paid for fitness programs for their children.
Manitoba Fitness Tax Credit – Parents can claim up to $500 for money paid for fitness programs for their children.
Each province offers their own tax benefits for parents caring for children, in addition to the Canada Child Benefit and Child Disability Benefit. The chart below outlines the benefit amounts for each provincial program. Make sure to check each link to learn more about eligibility.
Province | Type of Benefit | Amount of Benefit Each Month For The First Child($) |
Alberta | Alberta Child and Family Benefit (ACFB) | Up to $110.83 |
Ontario | Ontario Child Benefit (OCB) | Up to $121.75 |
Quebec | -Supplement for School Supplies -Family Allowance | -Up to $104 -Up to $2,515 per year |
New Brunswick | New Brunswick Child Tax Benefit (NBCTB) | Up to $20.83 |
Nova Scotia | -Nova Scotia Child Benefit (NSCB) -Nova Scotia Affordable Living Tax Credit (NSALTC) | -Up to $77.08 -Up to $60 per year |
British Columbia | -BC Early Childhood Tax Benefit -BC Child Opportunity Benefit -BC Climate Action Tax Credit | -Up to $55 -Up to $133.33 -Up tp $51 per year |
Manitoba | N/A | N/A |
Saskatchewan | Saskatchewan Low Income Tax Credit (SLITC) | Up to $136 |
Prince Edward Island | Prince Edward Island Sales Tax Credit | Up to $55 |
Newfoundland and Labrador | Newfoundland and Labrador Child Benefit | Up to $60 |
Yukon | Yukon Child Benefit (YCB) | Up tp $68.33 |
Northwest Territories | -Northwest Territories Child Benefit -Northwest Territories Cost of Living Offset | -Up to $67.91 -Up to $180 per year |
Nunavut | Nunavut Child Benefit | Up to $27.50 |
When you start saving for the future education of your child, the Canada Revenue Agency deems the savings plan an RESP, or a Registered Education Savings Plan. This plan allows your investment in your children’s education to grow without having to pay taxes on it. The government, specifically the CRA, also gives you an incentive to invest by paying a total of $7,200 over the course of the savings plan. Financial experts recommend parents start an RESP early on, as post-secondary education costs continue to rise in the tens of thousands of dollars.
Check how a credit card can help build your child’s financial knowledge.
Raising children is no easy feat, and the financial implications can be quite burdensome. Make sure you conduct ample research to learn every tax benefit and deduction you are eligible to apply for when it comes to your children.
Rating of 5/5 based on 3 votes.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.
Aeroplan is a well-known travel rewards program run by Air Canada. The Aeroplan program boasts millions of members and is considered Canada’s top trav...
40 standout leaders in the Fintech space were awarded a Leaders in Lending Award by the Canadian Lenders Association.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan.