It is important to know what your childcare qualifies for, here are a few pointers from Fabio and John Paul.
Video Transcript from New Childcare Deductions/h3>
John Paul: Hi there, and welcome to Campanella McDonald’s Tax Tip video. Today, we’re going to talk about childcare expenses for this upcoming tax season.
Fabio: So, in 2015, the government has increased all the childcare expenses, the limits by a thousand dollars. So, for children up to – who have not reached the age of seven, you get $8000 per year. Children who have not yet reached the age of 17, you get 5000. Children who have not yet reached the age of 17, who are disabled, you get $11,000.
John Paul: So, one thing that we want you to be aware of this tax season is that childcare is a very touchy thing and the situation is not always the same. Example being, my daughter, Brooke, goes to a Montessori and Fabio’s daughter, Sophia, goes to a Montessori. My daughter Brooke, her entire tuition is deductible because she’s actually classified under a daycare, where Sophia is actually – part of hers is only deductible because it is a school/daycare. So, watch out for that, look for the letter when you’re getting it from your service provider to see what you’re actually allowed to take on your tax return. So, until next time, we’ll see you guys then.