8 April 2004 Ministerial Correspondence 2004-0069861M4 - Child Care Expenses

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.

Principal Issues: Whether the higher income parent would be entitled to claim child care expenses throughout a period in which the lower income parent was confined to their home?

Position: No

Reasons: The taxpayer with the higher income will be allowed to claim a deduction for child care expenses based on the number of weeks in the year throughout which the lower income individual is certified by a medical doctor to be a person who was incapable of caring for children by reason of mental or physical infirmity and confinement throughout a period of not less than two weeks in the year to bed, to a wheelchair or as a patient in a hospital. In this particular case the confinement was for a period of less than two weeks, the individual was not confined to a bed, to a wheelchair or to a hospital or similar institution and the individual was not mentally or physically infirm.

 		April 8, 2004

	Ministerial Correspondence Division	HEADQUARTERS
		Karen Power, CA
	Attention: Betty-Ann Ward	(613) 957-8953

		2004-006986

Child Care Expenses

In response to your request of April 5, 2004, we are providing you with the following insert to assist you in completing the reply to XXXXXXXXXX:

"The Income Tax Act provides that, within certain limits, a taxpayer may deduct child care expenses incurred for services rendered in the year in respect of an eligible child. Generally, where both parents live together with their child, the child care expense deduction will be available only to the parent with the lower income.

As noted by your constituent, under certain conditions the spouse with the higher income may instead claim a deduction for the child care expenses. Under the Income Tax Act, the taxpayer with the higher income will be allowed to claim a deduction for child care expenses when the lower income individual is certified by a medical doctor to be a person who was incapable of caring for children because of a mental or physical infirmity and confinement throughout a period of not less than two weeks in the year to bed, to a wheelchair or as a patient in a hospital, an asylum or other similar institution.

The role of the Canada Revenue Agency (CRA) is to administer and enforce the Income Tax Act as adopted by Parliament and interpreted by the courts. The CRA is committed to applying the tax laws in a consistent and fair manner, however it does not have the discretion or right to change the Act.

Consequently, if as suggested in your constituent's email, his wife's confinement was for a period of less than two weeks, he would not be entitled to deduct child care expenses. In addition, it would appear that his wife was not confined to a bed, to a wheelchair or as a patient in a hospital or similar institution, nor was she mentally or physically infirm."

We trust our comments will be of assistance.

Milled Azzi, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Planning Branch