MAXIMIZING CHILDCARE TAX BENEFITS
Keep those Birdie Break receipts.
We know how important and challenging it can be to find reliable, safe childcare. We also know the financial burden can be overwhelming. For many Canadian parents, managing childcare responsibilities while juggling work, school, or caring for children with special needs, is both challenging and financially demanding.
Depending on the circumstances of your childcare, you might be eligible to claim childcare expenses and gain meaningful tax benefits this tax season. Babysitting booked through Birdie Break, or other childcare services, can be eligible for tax benefits. We aren’t tax experts, and we aren’t giving tax advice, but we wanted to provide some information you may not be aware of to discuss with your tax advisor or accountant.
Understanding the Childcare Expenses and Tax Benefits
The Canadian Revenue Agency (CRA) recognizes the financial strain of childcare and provides some tax relief through childcare expense deduction and credits. Eligible childcare expenses may include babysitters, nannies, daycare facilities and specialized care. The extent to which you may be eligible will depend on your unique circumstances, but it is worth looking into it to find out which of your Birdie Break expenses might qualify.
Child care expenses, as outlined on the CRA website, are expenses that are incurred so you could:
- Earn income from employment
- Carry on a business either alone or as an active partner
- Go to school
- Carry on research under a grant
So, if you were booking a sitter for any of the above, don’t forget to include those expenses. So, for example if you need childcare during a daycare closure or PD day (why are there so many?) because you need to work, that could be eligible. Birdie Break provides an invoice after each babysitting session, so gather those from your email, or you can reach out to us if you would like us to send all of your receipts at once.
Special Needs Childcare and Tax Benefits
Families who require special needs care often incur additional expenses related to childcare including specialized caregivers and support services. Finding support from a team of experienced babysitters who possess the necessary qualifications to work with children with special needs (like our Birdie Break Sitters), can be an incredibly valuable resource for parents who require unique support.
Specialized support gives children access to caregivers trained to provide qualified care for conditions such as Autism Spectrum Disorder, ADHD, Anxiety, Deaf or hard of hearing, Oppositional Defiant Disorders and Conduct Disorders (ODD/CD). It also may qualify for additional benefits.
Depending on where you live, childcare expenses qualify for tax deductions, credits, or reimbursements for special needs care, however some provinces may require a special form to be filled out to ensure compliance.
If you have a child with special needs, include that on your Birdie job posting and our qualified sitters will reach out. And, be sure to speak to your accountant or tax advisor to learn more about eligible expenses that your Birdie Break may qualify for.
Don’t Forget to Keep Your Receipts.
Understanding tax benefits associated with childcare expenses, particularly for families who need special care, can significantly alleviate financial burden. To claim childcare expenses, ensure they meet the CRAs eligibility criteria and keep accurate records of your childcare expenses, including receipts, invoices and documentation to support your claims.
Consult a tax professional or accountant to explore available benefits and ensure compliance with CRA regulations.
Visit the CRA website and your Provincial Government website for detailed information on making claims for childcare expenses and special needs childcare benefits.
Our team is here to support you, please reach out if we can be of assistance with pulling together your Birdie expenses as you explore what benefits your babysitting services might qualify for.
For media inquiries and further information, please contact:
hello@birdiebreak.com
*This blog aims to provide general information related to childcare and babysitting services, it is essential to note that we are not a tax advisory service and the details shared here should not be constructed as professional tax advice or guidance. Tax laws and regulates may vary and individual circumstances can impact eligibility.
Resources: