Ontario Announces New Childcare Tax Credit For Families In Mississauga
Parents can now receive up to 75 per cent of their eligible childcare expenses with the new Ontario Childcare Access and Relief from Expenses (CARE) tax credit.
Parents can get a tax credit for a wide range of options, including care in centres, homes and camps.
Minister of Finance Rod Phillips, Minister of Education Stephen Lecce and Associate Minister of Children’s and Women’s Issues Jill Dunlop announced the new tax credit at the YMCA of Simcoe.
“This tax credit will help parents with costs and allow them to choose from a broad range of childcare options, such as services provided by people in their own homes to those available through schools or places of worship. It will keep parents at the centre of the childcare decision-making process,” said Minister Phillips.
Families will be able to claim the CARE tax credit, starting with the 2019 tax year, and will not have to gather any additional information other than what they would have needed to claim the CCED when filing their tax returns.
Starting in 2021 tax-year, the credit will be available for eligible families through regular advance payments during the year. The CARE tax credit will be on top of the existing Child Care Expense Deduction (CCED).
According to the government, the CARE tax credit will provide about $1,250 per family, on average, in new childcare support to about 300,000 low- and moderate-income families. The maximum amount available will be higher for families with a child dealing with a severe disability, with no age restrictions.
“We know that childcare is expensive for middle-class families, which is why we are delivering relief for parents in our province,” said Minister Lecce.
The CARE tax credit is in addition to an investment of up to $1 billion over the next five years to create up to 30,000 childcare spaces in schools.
“Currently, families in my riding of Simcoe North who are in need of childcare may have few affordable options beyond subsidized daycare centres, which may have a long waitlist,” said Minister Dunlop. “Our government recognizes that need and I’m glad they have this tax credit to provide relief on eligible childcare expenses.”
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