What do I need to know about child care expenses?

Paying for child care puts a strain on just about any budget, so it's important to know which child care expenses can be claimed and which cannot. Below are answers to some of the most frequently asked questions on this topic.

Q: I do alot of charity work. Can I claim the cost of a baby sitter while I am involved in my volunteer activities?

A: Unfortunately, no. As a general rule, you can only claim child care expenses that allow you to work, carry on a business, or do research work for which you have a grant. However, there are some circumstances in which you can claim baby sitting expenses you incurred while going to school.

Q: Can I claim child care expenses if I am paying my mother to look after the children while I am working?

A: Yes, as long as you are not also claiming your mother as a dependant. However, you cannot claim child care expenses for amounts you pay to a parent of the child, your spouse or common-law partner, or someone under 18 who is related to you.

Q: Can I claim our child care expenses even if my wife was the one who actually paid them?

A: Child care expenses must usually be claimed by the spouse or common-law partner with the lower net income. However there are some situations where they may be claimed by the higher-income spouse. For example, you can claim these expenses if you have been seperated from your spouse for a period of at least 90 days, or if your spouse was incapable of caring for the children due to a physical or mental infirmity.

What qualifies for the Children's Fitness Credit?

Beginning January 2007, when you enroll your child in sports or fitness programs, the registration fee for qualifying programs to a maximum of $500 per child up to 16 years of age, may be used as a non-refundable credit. Registration fees can include the cost of administration, instruction or lessons, rental of facilities and uniforms and equipment. However, these items may not be claimed seperately. For complete information visit the H&R Block website at www.hrblock.ca.

What is the Transit Pass Credit?

The Federal Budget tabled May 2, 2006 brought a new non-refundable credit targeted towards public transit commuters. Beginning July 1, 2006, if you purchase transit passes for a duration of a month or longer for yourself, your spouse or your children under the age of 19, the total cost can be used as a non-refundable credit towards taw owing.

What other credits are available for single parents?

If you are a single parent, you are entitled to further tax benefits:

- Single parents are allowed to claim one of their children as an eligible dependant, which is equivalent to claiming a dependant spouse or common-law partner. However, only one amount for eligible dependant may be claimed per household.

- Single parents attending school can claim child care expenses even if they do not have any employment income. This is because the amount they can claim is limited to two-thirds of their net income, as opposed to two-thirds of their earned income.

- Single parents receive an additional $125 on their annual GST/HST credit. This amount is reduced once your net income exceeds $30, 936.

- Child support payments are not taxable if they are made in accordance with a court order or written agreement dated after April 30, 1997. Spousal support payments, however, remain taxable.

Akie Ang, The China Post

Canadian Model Sets the Standard - Monday, March 12, 2007

Canada is hailed by experts on domestic worker issues as a model nation. Former Hong Kong maid Joy Thompson, who has been working for a family in Montreal since 2004, agrees.

The Filipina's salary after tax is about double what she earned in Hong Kong, she works eight hours a day, five days a week, lives in a self-rented apartment, and gets a travel allowance and free medical care. But the biggest prize is that she can get a full Canadian residency and, one day, will be able to have her three teenage children join her.

"My two-year qualification period for residency comes up next month. I will put in my application and, God willing, have it in six to eight months," said Ms. Thompson, 38. "I'm one of the luckiest people."

Employed from Hong Kong after registering with a recruitment agency and paying a HK$100 application fee, she works for a middle-aged couple, who signed her a contract after a telephone interview. She works from 8:30am - 4:30pm, Monday to Friday, and is paid C$267 (HK$1,770) a week. Her employer pays her tax and she rents a bachelor's flat for C$450 a month, leaving her, after expenses, with about 10 per cent more than she could have made in Hong Kong.

Ms. Thompson said such conditions were far removed from what she experienced during five years as a domestic helper in Hong Kong. Here, her employment generally involved 16 hours per day, six days a weekm and she got little privacy. Both of her employers were at times, problematic, although the second one was especially so.

"The woman was jealous of me because of her husband and always causing trouble for me," she said.

If Hong Kong had permitted her permanent residency, she would have liked to have studied here, she said. Canada gives that option, and she intends to begin studies in business administration next year.

"I've dreamed of having my own business," she said. "My employers are supporting my study plans and helping my dreams come true."