Have you or your spouse paid childcare expenses for your dependent child? You may be eligible for a refundable tax credit if you meet certain requirements.
The tax credit may offset some of the allowable childcare expenses you paid.
To qualify
First, your child must have been living with you when the childcare expenses were incurred. The child must be no older than 16, unless he or she has a disability (no age limit).
Secondly, one of the following situations must have existed at the time of the childcare expenses:
- You paid childcare expenses so you could work, attend school full-time or look for a job;
- You were receiving benefits under the Québec Parental Insurance Plan (QPIP); or
- You were receiving birth or adoption benefits under the Employment Insurance program.
A new feature in 2020: distance or virtual learning is now recognized and keeping to a specific class schedule is no longer required unless you are attending secondary school. However, make sure that you meet all requirements for studying full-time at an eligible educational institution.
Allowable expenses
Many childcare expenses are allowed, especially those paid to:
- A private daycare or a home childcare provider that does not offer subsidized childcare spaces;
- A school daycare service, excluding the amount for subsidized childcare spaces;
- A preschool education centre, nursery school or kindergarten;
- A day camp or recreation centre;
- A babysitter in the home, except for certain members of the family.
Please note: Government-subsidized childcare spaces (childcare centres, school daycares, etc.) do not qualify for the credit.
Instead of a single annual tax receipt, keep the receipt for every payment made, especially if you pay cash. Only expenses for which you were not reimbursed can be claimed.
To obtain this tax credit, you must enclose Schedule C of your income tax return. You do not have to provide receipts but have to be able to produce them on demand.
You can also receive advance payments of the tax credit in monthly instalments by completing the form for that purpose.
Exceptional measures due to the pandemic
Did you receive or are receiving government support benefits in 2020 or 2021? The government has announced that for these tax years only, childcare expenses may be deducted from benefit-derived income. This includes Québec Parental Insurance Plan (QPIP) and Canada Emergency Response Benefit (CERB) payments.
Did you receive COVID-19 related financial support in 2020 and have an outstanding tax balance? If your 2020 income is $75,000 or less, you qualify for a tax holiday on the balance until April 30, 2022.
Do you owe income tax for 2020? No interest will be charged on that amount until May 31, 2020.
In 2020, did you receive financial assistance related to COVID-19? If your annual income is $75,000 or less, interest will be waived until April 30, 2022.
Questions or problems?
For all the details about the tax credit, see the Revenu Québec website.
Are you dissatisfied with Revenu Québec’s services? Contact the Protecteur du citoyen. Our services are confidential and free.
