Child care expense paid to certain individuals is not tax deductible

When you hire your family members to look after your child, the payments may not be qualified for child care expense deduction. In order for the payments to be tax deductible, the individual who provides the child care services cannot be:

• • the child’s father or mother;

• • a person who claimed any of the following credits for the child:

• • • line 305 – amount for an eligible dependent
    • line 306 – amount for infirm dependents age 18 or over
    • line 315 – caregiver amount
    • line 367 – amount for children

• • a person for whom you or your spouse or common-law partner claimed any of the following credits:

• • • line 305 – amount for an eligible dependent
    • line 306 – amount for infirm dependents age 18 or over
    • line 315 – caregiver amount

• • a person under 18 years of age who is related to you

A person is related to you if the person is connected to you by a blood relationship, marriage, or common-law partnership, or adoption.

Example of person related to you:

• • brother
  • sister
  • brother-in-law
  • sister-in-law
  • child