Parents and tax

If you have children, there are various tax credits and deductions you can claim on your tax return.

Canada Child Benefit (CCB)

This tax-freeTax-free Money that you do not pay tax on.+ read full definition monthly payment is made to eligible families with children under the age of 18. The payment amount is calculated each year based on your family’s net income from the previous year.

You can apply for the CCB through your CRA My AccountAccount An agreement you make with a financial institution to handle your money. You can set up an account for depositing and withdrawing, earning interest, borrowing, investing, etc.+ read full definition, or by filling in Form R66.

Learn more about the Canada Child Benefit from the CRA, and estimate your payment amount with the Canada Child Benefit Calculator.

Child care expenses deduction

If you have paid expenses for someone to look after your child so that you can go to work or school, you may be eligible for the Child Care Expenses Deduction. Eligible payments include daycare, nursery school, day camps, or child care providers that are not related to you.

Deductions reduce your taxable incomeTaxable income The amount of income you have to pay tax on, after tax credits and deductions.+ read full definition at taxTax A fee the government charges on income, property, and sales. The money goes to finance government programs and other costs.+ read full definition time, which means the deduction may lower the amount of tax you owe, but it will not add to a refund.

The maximum you can claim per child each year is:

  • $8,000 for children under age 7
  • $5,000 for other eligible children
  • $11,000 for children who qualify for the disability tax creditTax credit The amount you can deduct from your income when you file your taxes. This lowers the tax that you owe.+ read full definition

Learn more about the Child Care Expenses Deduction, including how to claim it, and what payments you can claim.

Adoption Expense Tax Credit

You can claim an amount for adoption expenses related to adopting a child under the age of 18. The maximum claim for each child is $17,131 in 2022. The amount is indexed to inflationInflation A rise in the cost of goods and services over a set period of time. This means a dollar can buy fewer goods over time. In most cases, inflation is measured by the Consumer Price Index.+ read full definition.

Learn more about claiming adoption expenses.

Saving for your child’s education in an RESP

Contributions to your child’s RESPRESP See Registered Education Savings Plan.+ read full definition are not tax deductible, but you won’t be taxed on any income earned while the funds remain in the plan.

If you save for a child age 17 and under, the federal government and some provincial governments will also put money into the RESP as a grant or bondBond A kind of loan you make to the government or a company. They use the money to run their operations. In turn, you get back a set amount of interest once or twice a year. If you hold bonds until the maturity date, you will get all your money back as well. If you sell…+ read full definition.

Accumulated earningsEarnings For companies, it’s the money they make and share with their shareholders. For investors, it’s the money they make from their investments.+ read full definition and government grants are taxable income to the student in the year they are paid out. Contributions can be withdrawn tax free.

Read more about RESPs including how they work and different types of RESPs.

TAKE ACTION

Find out if you qualify for:

  • Monthly CCB payments
  • Child care expenses deduction
  • Adoption expenses tax credit
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