Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
XXXXXXXXXX 952125
J. A. Szeszycki
August 21, 1995
Dear XXXXXXXXXX:
Re: Child Care Expenses
Mr. David Anderson, Minister of National Revenue, has asked that we respond to your letter of July 17, 1995 which was addressed to the Minister of Finance, the Honourable Paul Martin, P.C., M.P., a copy of which you forwarded to Mr. Anderson.
In your letter you indicate that you have been receiving unemployment insurance benefits following the closure of your place of employment. During this period you have been attending school for the purpose of obtaining your secondary school diploma. Your attendance at school has been approved by Human Resources Development Canada while maintaining your entitlement to unemployment insurance benefits. While attending school you incur child care costs.
The Income Tax Act permits the deduction of child care costs in a specific set of circumstances and within certain limitations. One of the limiting factors on the actual amount that may be claimed as a child care expense is your level of earned income in the year. The term "earned income" is defined in the Act for the purpose of claiming the child care deduction. It includes, among other things, employment and self-employed income but clearly does not include unemployment insurance benefits. Consequently, a person whose income does not include what is defined as "earned income" will not be permitted to claim child care expenses.
We trust our comments explain the Departmant's position on the matter.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
c.c. Minister's Correspondence
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© Her Majesty the Queen in Right of Canada, 1995
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© Sa Majesté la Reine du Chef du Canada, 1995
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