As tax season approaches, we often receive a wide variety of questions, some common and some quite unique! Below, we’ve summarized a few of the most frequent questions about expenses clients often wonder if they can claim (or didn’t realize they could).
Please note, any lists provided here are not extensive and exemptions always apply and all situations should be examined on an individual basis or situation.
Claiming Child Support Payments vs. Child Care Expenses
Child Support Payments
Child support is typically determined during a family court proceeding at the time of separation, or by mutual agreement between ex-partners outside of court.
- The paying parent cannot claim child support payments as an expense.
- The receiving parent is not required to report child support payments as income.
This is because child support payments are intended solely for the benefit of the children.
Child Care Expenses
Child care expenses, on the other hand, relate directly to the cost of caring for your children so that one or both parents can earn income. Common examples include (but are not limited to):
- Payments made to daycares or nurseries so parents can work
- Payments to babysitters or other caregivers
- Summer camps or day camps
- Educational institutions (only the portion relating to meals, lodging, or direct care services)
Note: Private school fees are not deductible, as their primary purpose is education, not child care.
Who Qualifies as an “Other Caregiver”?
An “other caregiver” is anyone other than a:
- Biological parent
- Spouse or common-law partner
- Person under 18 who is related to you (e.g., sibling, niece, nephew, cousin)
Claiming Home Office or Business-Use-of-Home Expenses
Expenses related to your personal home generally cannot be claimed unless you:
- Run a business from your home, or
- Maintain a home office required by your employer, who provides the appropriate documentation and does not reimburse you for these expenses.
If you qualify, the expenses you can claim must be proportional to the business use of your home (i.e., square footage used for business ÷ total square footage of the home).
Common claimable expenses include:
- Electricity and heating
- Telephone (landline)
- Repairs and maintenance
- Insurance
- Mortgage interest (interest only, not principal)
Claiming Expenses for Dogs and Cats
For most people, pet expenses are not deductible, no matter how important your furry friends are to the family! However, there are some exceptions:
- Farmers or certain business operators (e.g., junkyards) may be able to deduct dog food and vet expenses if the animal is used for a legitimate business purpose, such as herding or security.
- Service animals trained to assist individuals with disabilities are eligible.
Examples of qualifying service animals include those assisting:
- Individuals who are blind or deaf
- People with physical impairments (arms or legs)
- Those living with conditions such as epilepsy, autism, or diabetes
A word of caution: The CRA may review these expenses closely. Claiming a Chihuahua or Dachshund as a “guard dog” could raise eyebrows unless you have a convincing explanation! Similarly, “barn cats” may be deductible for vermin control, but you’ll need to justify the necessity if audited.
These examples reflect some of the most common tax-related questions we receive each year during filing season. Remember, exceptions always apply, and tax situations can vary widely.
If you’re unsure whether an expense qualifies, we strongly encourage you to reach out and ask. It’s always better to clarify before filing than to amend your return later.
