Nanny, T4 and Child care expense deduction

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
dmendel
Posts: 29
Joined: Sun Apr 23, 2006 1:13 pm

Nanny, T4 and Child care expense deduction

Post by dmendel »

This is not really a US-Canada tax issue, just a Canada one, but thought i would throw it out there:

Hired a Nanny in 2007 for part-time childcare. We got a business number and paid all tax and CPP and EI deductions on her salary. We just filed T4. According to relevant CRA info publications on child care expenses, you have to have a receipt from provider indicating total paid. But since total paid for childcare (gross) and total paid to Nanny directly (net) are not the same, how does one document the full amount?

I called CRA and they said all I need is a copy of her T4 -- no receipt from the Nanny is required. This makes sense to me, but the relevant info publications says nothing about this situation. Should I get a receipt anyway, which will indicate her net pay, and then use a copy of her T4 to show the remmitances?

And then what do I do about claiming Ontario WSIB dues ($100) that had to be paid?
Carson
Posts: 182
Joined: Wed Oct 27, 2004 1:00 pm
Location: Toronto

Post by Carson »

T4 and WSIB statement are sufficient proof. Claim everything (up to the limit per child of course) paid out, including the WSIB payment.
Post Reply