Week 4 Testing Flashcards
(12 cards)
Are deductions for childcare expenses usually claimed by the higher or lower income spouse?
The lower income spouse claims childcare deductions
What are the exceptions in which a higher income spouse can claim childcare expenses?
Lower income spouse is in full/part time school, hospitalized for 2+ weeks, separated 90+ days OR imprisoned
Under what circumstances can childcare expenses be claimed if a family member is a caregiver?
The family caregiver must be 18+ for you to claim any payments of childcare
What are the conditions that a primary caregiver can claim childcare deductions?
Childcare deductions can be claimed if the primary caregiver is away to earn BUSINESS INCOME, EMPLOYMENT INCOME, or ATTENDING SCHOOL
What rates to these follow tax credits have? Medical, Childcare, Tuition and Donations
All Medical, Childcare and Tuition tax credits have rates of 15% Federally and 5.05% Provincially. Charitable Donations DO NOT HAVE THE SAME RATES.
Who can claim Medical Expenses?
Either the lower income OR higher income spouse can claim medical expenses
Why is it more beneficial for the lower income spouse to claim medical expenses?
It is more beneficial because the reliability for credit would be higher and the reduction would be lower
What forms of income determine the childcare deductions?
Employment Income, Business Income, and Taxable Scholarships
Who can claim for a eligible dependent?
People without a spouse or common law partner
What are the limitations for childcare deductions?
0-7 years: $8,000 (200/week), 7-16 years: $5,000 (125/week), 16+ with physical or mental infirmity: $5,000 (125/week), any age with disability: $11,000 (275/week)
What types of Childcare have limited amounts?
Childcare expenses on Overnight Summer camps and Boarding School
What are some types of Family Income?
Business Income, Employment Income, Employment Insurance, Social Assistance, Child/Spousal Support
