Talk to the expert...Do my kids' summer camps tax-deductible?
Talk to the expert...Do my kids' summer camps tax-deductible?
The final bell of the year sounds like the perfect music for kids everywhere, but for parents, the closing of the school year is a time to work out the summer childcare options. Sports schools, day camps, home-based care, and overnight camps are all excellent alternatives to ensure your child's care is looked after while away from school; however, it's essential to know the limitations on how to claim any related expenses such as childcare costs.
In-home and daycare
In general, licensed daycare centers such as nursery schools, nannies, and other home-based care providers are eligible for childcare expenses. If you utilize these services, make sure you receive a complete receipt that includes the name of the company or individual as well as the services provided to be able to submit it along with the T778 form during tax season.
Sports camps, day camps, and school camps
Sports camps, day camps, and school expenses are usually eligible. However, the CRA states that the primary purpose of these camps should be the care of children (i.e., the establishment that provides a sports-related study program is not a school for sports). Costs for children older than the age of 18 who participate in high-level sports training camps are not likely to be taken into account.
Overnight camps
Overnight camps or even overnight sports schools are qualified up to a particular amount. The amount can range between $125 and $275 per week, based on the age and abilities of the child who is eligible.
Relatives and siblings
In the majority of cases, it is not possible to claim the payments to specific relatives as tax-deductible, according to the list of exempted relatives as defined by CRA. They include:
- The child's parents
- A spouse, common-law partner, or the mother or father of the child who is eligible
- Someone who is younger than 18 and who is connected to you through a blood connection such as marriage, common-law partnership, or adoption (this excludes nieces, aunt, nephew, uncle, or uncle)
- A dependent on who you or someone else claimed an amount at line 30400, 30400, 30450, or 30500 on their return
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