New Childcare Refundable Tax Credit in Ontario

The Ontario government’s child care refundable tax credit, “Childcare Access and Relief from Expenses” is in effect. This tax credit is to be taken into account when determining the net cost of childcare to be apportioned between parents under section 7(3) of the Child Support Guidelines (“section 7 expenses”). The tax credit is significant such that the net cost of childcare may be a negative in some situations resulting in a “surplus” to be paid by the support recipient. In that case, it may be preferable to leave the “surplus” in the recipient’s net disposable income as opposed to paying back the support payor his or her proportionate share of the surplus.

If you are a payor or recipient of child support incurring childcare costs, PooranLaw’s family law partner, Melanie Battaglia, can assist with ensuring that this new tax credit is implemented in the support calculation in the most advantageous way for your family.