Why is it Important for Parents/Primary Caregivers to File Tax Returns?
The Notice of Assessment you receive from the Canada Revenue Agency after filing your income tax will be the proof of income asked by your municipality for childcare subsidy purposes. Childcare subsidy will help you cover the cost of childcare for your child, if you qualify. Also, you need to file income taxes to have access to the Canada Child Benefit (CCB) .
How to File
What to Claim when Filing
Parents can claim the Child Care Expense Deduction when filing their income tax. Detailed and up to date eligibility information is available through the Canada Revenue Agency. Amounts change from year to year.
Canada Child Benefit (CCB) is a tax-free benefit paid monthly to support the of raising children under 18 years. If you are an international student you may become eligible this benefit after being in Canada for at least 18 months.
If you have never received the Canada Child Benefit (CCB) before, have had a baby, have become the primary caregiver for a child or have moved to Canada, you apply for the CCB in one of the following ways:
If you have previously received child benefits, you don’t need to reapply, but need to file an income tax return each year.
The amount of CCB depends on several things, including the number of children and your family income (line 236 of your income tax). The CRA has an online benefits calculator that estimates the amount you will receive.
Registered Education Savings Plan & the Canada Education Savings Grant
A Registered Education Savings Plan is a special savings plan that can help you, your family, or your friends save for education after high school. RESPs are registered by the Government of Canada to allow savings for education to grow tax-free until the person named in the RESP enrolls in education after high school. To help you save for a child’s post-secondary education, the Government of Canada will make contributions to your Registered Education Savings Plan (RESP) in the form of the Canada Education Savings Grant. Canada Education Savings Grant is a financial incentive for parents, family and friends to save for a child’s education after high school. The grant is paid directly into the child’s RESP.
Childcare Subsidy assists with the cost of child care of a child 0 – 9 years of age who resides with you (if you are the parent, foster parent or legal guardian). If you live in Toronto, it may be extended to children up to 12 years of age upon over-age approval from Toronto Children’s Services; if you live elsewhere check with your municipality. Subsidy is available for licensed group daycare and licensed home care in the City of Toronto.
Please visit the Applying for Childcare Fee Subsidy page for details or to apply if you live in Toronto. Otherwise, visit your municipality’s website:
- Canada Revenue Agency: Search “CCB” or “Frequently Asked Questions for Individuals”
- Canada Benefits Finder
- Canada Child Benefit for Newcomers: Search “CCB”
- Where can I get help with my tax return? Search “help tax return” at settlement.org
Students, your student union might have tax clinics (for example, UTSU Tax Clinics)