ELIGIBILITY CONDITIONS FOR THE TAX CREDIT FOR CHILDCARE EXPENSES
You were in full-time attendance at an educational institution (that is, you were enrolled in an educational program lasting at least three consecutive weeks, which stipulates that each of the enrolled students must devote at least 10 hours per week for courses or assignments in this program. You attended an educational institution part-time (that is, you were enrolled in an educational program lasting at least three consecutive weeks, which stipulates that each of the enrolled students must devote at least 12 hours per month during this program.
Paid child care expenses were incurred while you or your spouse on December 31 was in one of the following situations:
- you held the office of an office or a job,
- you were actively carrying on a business,
- you were practicing a profession,
- you were doing research for which you received a grant,
- you were actively looking for a job,
You were receiving benefits from the Quebec Parental Insurance Plan or benefits related to a birth or an adoption under the Employment Insurance Plan; you or your spouse as of December 31 have paid fees to an individual, a day care center, a vacation and leisure center, a boarding school or a summer camp to provide child care services; in addition, the child was living with you (or with your spouse on December 31) at the time these expenses were incurred;
The daycare services were provided in Canada by a person who lived there, unless you were temporarily living outside of Canada. See who is eligible for child tax credit activities is a refundable tax credit from Quebec. It aims to “help low- and middle-income families offer activities for their school-aged children to develop their skills and abilities, particularly through sport and the arts. For the 2018 taxation year, the child activity tax credit resulted in an estimated tax expenditure of $ 21.8 million. For the 2016 taxation year, 243,583 individuals benefited from the credit
Parameters and calculation
The children’s activity tax credit consists of applying a rate of 20% to eligible registration or membership fees, up to the general limit per child of $ 500 for the 2019 taxation year. Credit therefore has a maximum value of $ 100 ($ 500 x 20%). However, eligibility for the credit is conditional on the family income not exceeding $ 138,525, the threshold above which it is no longer possible to benefit.
The tax credit for children’s activities covers eligible expenses paid in respect of a child aged 6 to 15 inclusive. These costs include registration for a program. Which includes physical or artistic, cultural or recreational activities suitable for children and which lasts at least eight consecutive weeks or at least five consecutive days”. These fees also include “the child’s membership in a club, association or similar organization that offers physical, artistic, cultural or recreational activities provided that the membership lasts at least eight consecutive weeks.
The amount of the tax credit may be divided between the spouses provided that the total claimed does not exceed the maximum amount allowed for one of these individuals in respect of the child.
If the child has impairment, his eligibility age extends to 17 years inclusive. Provided that the eligible expenses paid for this child are at least 25% of the general ceiling per child, or $ 125 in 2019, the individual can add an additional amount equivalent to the general ceiling per child. The limit on eligible expenses then increases to $ 1,000, which increases the maximum value of the credit to $ 200 for the 2019 taxation year.
The tax credit for children’s activities has existed since the 2013 taxation year. Its rate has remained at 20% since its introduction. Originally, the general limit was $ 100 per child with a maximum value of $ 20. The ceiling was then increased by $ 100 per year to reach $ 500 in 2017, a maximum value of $ 100.