Tax season is fast approaching in Canada, and if you’re a parent looking to save money, the Canadian government offers various tax breaks for parents you might be eligible for.
From monthly child benefit payments to deductions for child care expenses, these tax breaks are designed to support parents in managing the costs associated with raising a child in Canada.
Here are five tax breaks for parents in Canada to consider in 2024.
Canada Child Benefit (CCB)
Overview: The Canada Child Benefit is a tax-free monthly payment provided to eligible families with children under the age of 18.
Benefits: This benefit aims to assist families with the costs of raising children, providing financial support based on factors such as family income and the number of children.
See the Canada child tax benefit payment schedule for 2024.
Child Care Expenses Deduction
Overview: Parents can claim a deduction for eligible child care expenses, including fees paid for daycare services, day camps, and certain educational programs.
Benefits: This deduction helps alleviate the financial burden of child care, making it more affordable for parents who are work or attend school.
Children’s Fitness Tax Credit
Overview: The Children’s Fitness Tax Credit allows parents to claim a tax credit for eligible expenses related to their child’s participation in eligible fitness activities up to a maximum of $500.
Benefits: This tax break encourages parents to promote healthy and active lifestyles for their children while providing a financial incentive through tax savings.
Registered Education Savings Plan (RESP)
Overview: While not a direct tax break, contributions to an RESP grow tax-free, and the government provides the Canada Education Savings Grant (CESG) to enhance savings.
Benefits: RESP contributions can help parents save for their children’s post-secondary education, and the CESG adds an extra boost to the overall savings.
Adoption Expenses Tax Credit
Overview: Parents who adopt a child may be eligible for a tax credit to cover eligible adoption expenses.
Benefits: This credit assists adoptive parents in managing the costs associated with the adoption process, recognizing the financial commitment involved in expanding their families through adoption.
Canadians can start filing taxes on February 19, 2024. The deadline to file taxes in 2024 is April 30 for most Canadians.
Always consult with a tax professional for personalized advice based on your individual circumstances and needs.
Photo credit: Photo by Caleb Oquendo
