What is the allowable child care deduction for 2012?
CRA defines the overall maximum amount that a taxpayer can deduct for a tax year for each eligible child. The maximum amount to be deducted is dependent on the child’s age, physical and mental condition.
The annual child care expense allowable deduction is:
• $7,000 for each child under 7 years of age at the end of the year;
• $4,000 for each child over 6 years of age at the end of the year and under 16 years of age at any time during the year; or
• $4,000 for each child over 15 years of age throughout the year who has a physical or mental infirmity and is dependent on the taxpayer, the taxpayer’s spouse or common-law partner.