ONTARIO CHILD CARE ACCESS AND RELIEF FROM EXPENSES (CARE) TAX CREDIT
What is it?
This refundable credit helps to offset the cost of childcare.
Who is eligible?
Anyone who receives the child care expense deduction is eligible.
How much is the credit?
The credit is equal to a prescribed rate multiplied by the child care expenses deduction (from Line 21400 of the T1 return). The prescribed rate depends on net family income. The calculation is shown on Form ON479-A. Below is a partial table of prescribed rates.
For example, if the child care deduction is $1,000 and net family income is $30,000 then the credit will be 67% x $1,000 = $670.
How is it claimed and paid?
UFile will automatically calculate the credit if the person has a child care deduction. UFile will generate ON479-A and the amount is reported on Line 47900 on the T1 return.
The credit will reduce tax owing or increase a tax refund on a tax return.
Who gets the credit if there are two spouses caring for a child?
The parent eligible to claim the credit is the one who is entitled to the child care expense deduction. The deduction must normally be claimed by the parent with the lower net income, regardless of which partner paid the expenses.
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