# preschool tuition and childcare tax credits



## jazzman

My son started going to preschool in Sept 2014. I work full time but my wife is currently not working. Essentially, she is stay at home mother. 

Can I claim the preschool tuition as childcare expense? Or do both parents have to be working/studying in order for us to claim this tuition as childcare expense?

Thanks


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## amitdi

I dont know the answer, but my son is 2 yrs so even I am curious to know if I can do this in future. Have you looked at the CRA link? It does not spell out explicitly though

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/214/pymnts-eng.html


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## stardancer

Both parents must be employed to claim child care expenses. The deduction goes on the return of the lower-income earner. There are only two situations in which the higher income earner can deduct the expenses- the spouse is in school full time or in prison. So, in jazzman's situation, no the tuition is not deductible.

http://recherche-search.gc.ca/rGs/s...1rt=0&langs=eng&cdn=cra&q=child+care+expenses


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## Cdnwife

Or medically unfit to care for the child(ren) on their own. Coworkers spouse has been on disability and unable to care for the child. The working spouse is able to claim as long as there is a medical note.


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## Allan Madan

The child care expense can be claimed although your spouse is not working. 
The expense should be claimed on the spouse with the lower income. 
In your situation, the child care expense will be claimed on your wife's tax return. 

Sincerely, 
http://www.madanca.com
Madan Chartered Accountant


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## Maybe Later

Look closely at the wording. My recollection is that anything paid as "tuition" is not a childcare expense.

If not, consider whether preschool activities qualify for the Arts credit (singing, dancing, painting)

I'm not an expert, but this has come up with us in the past.


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## nahc

Maybe Later said:


> ...anything paid as "tuition" is not a childcare expense.


This is what I think as well. Preschool tuition does not qualify, unless it was a boarding school, and then, only the boarding part applies (and only if both parents *earn* income-- dividends don't count).


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## WiseOwl

Child care expenses can be claimed so long as you OR your spouse are working to earn employment income. However, that's a fairly generic statement to make without considering how other areas of the Act come in to play.

The child care expenses have to be claimed on the lower income spouse's return unless one of the exceptions outlined in the Act apply. Meeting one of these exceptions would allow the higher income spouse to claim the child care expenses. They include situations where your spouse:

1) was a student at a designated educational institution (enrolled in a part-time or full-time program);

2) is 'infirm' (this is not defined in the Act, but is generally considered to be at a lower threshold than 'disabled'); or

3) is in prison for more than 2 weeks.

If your spouse doesn't meet any of these exceptions, then your spouse (as the lower income earner) must report the child care expenses.

Now, you have mentioned that your spouse is not working. Unfortunately, if your spouse has no earned income, then the child care expenses incurred won't provide any tax relief to you as a family. The Act limits child care expenses to 2/3 of the reporting person's 'earned income'. With no earned income, the allowable child care expenses that your spouse could claim would be effectively reduced to $nil.

Let's ignore the above for a moment and assume that your spouse did have some earned income and would benefit from the child care expense claim. You then have to look at whether 'preschool' is eligible.

CRA allows you to claim child care expenses where the payments were made to an educational institution for the purpose of providing child care services. However, they administratively see educational institutions as offering child care as well as educational programs.

Their current stance on this (per Income Tax folio S1-F3-C1) is that payments made to an educational institution for a child under the compulsory school age (e.g., 'preschool') are generally considered child care rather than education unless facts indicate otherwise. If your child was above the compulsory school age, only the fees relating to child care (e.g., supervision before/after class or at lunch) would qualify.

Hope this helps.

Cheers,
WiseOwl


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## Jarron63

Well, my daughter goes to a Phoenix pre-k. There are lots of children who have been enrolled there after claiming Child care expenses. You should visit Phoenix pre-k for further details.


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## hfp75

Sorry to resurrect such an old thread. My wife and I both work, last year I worked Jan-August then on a LOA, and my wife worked June to mid December - when she had a baby.

Our 4 yr old is in preschool (fall '18) and I have a receipt, from the school. Can the lower income parent use it as a deduction ? On the receipt it states that the fees were for Tuition.

I dont think I can but there are smarter people here than I.


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## Emjay85

hfp75 said:


> Sorry to resurrect such an old thread. My wife and I both work, last year I worked Jan-August then on a LOA, and my wife worked June to mid December - when she had a baby.
> 
> Our 4 yr old is in preschool (fall '18) and I have a receipt, from the school. Can the lower income parent use it as a deduction ? On the receipt it states that the fees were for Tuition.
> 
> I dont think I can but there are smarter people here than I.


I believe you absolutely can.

https://turbotax.intuit.ca/tips/claiming-child-care-expenses-5175

Person with the lowest income, including zero income, can claim the expense.


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