I know that a client can claim $8000 for any child aged 6 and under, $5000 for a child aged 7 to 16 and $ 11000 for a child , who qualifies for disability credit.
Now question is, if the client hire a nanny and her annual wages are over $30000.00. Client has only two children under 6 Years (no disability). Can this client be able to claim more than $16000 for both kids?
I’d answer with a simple “no” but there is a minimum character limit in this forum…
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In your first sentence, you state the claim limit is $8,000 per child. 2 x $8,000 = $16,000. If the limit is therefore $16,000, what on earth put the idea in your head that you could claim more?? Your client must have one hell of an income to afford $30,000 for child care. That’s more than the gross pay of a person working full-time at Tim’s.
I asked this to confirm that I am not missing any thing. Government has a nanny program and people hiring nanny for their parents or children. As an employer, you have to make hourly paystub and T4. I want to confirm if there is any other way to claim this?
There is some nuance to this if it relates to care for disabled individuals. The amount paid could be attendant care expenses as medical expense, then you need to determine if the disability amount is more beneficial than the medical expense, can claim one or the other, not both.
As stated, if it’s child care alone and no disability; no. Limited by legislation.
As questioned re the income: I have had a number of professionals whose income is significant, and a number of them have paid FAR in excess of the maximum T778 claim.
And, for the unasked question: what if the person is self-employed…can they claim the nanny as a business expense the answer is also NO. See Symes v. Canada, 1993 CanLII 55 (SCC) which is far and away the leading case.
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