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Child Care Expenses
You may be able to deduct your childcare expenses if they were incurred to enable you or a supporting person to earn employment or business income, attend secondary or post-secondary school, or engage in grant research. Attendance at a secondary or post-secondary school means attendance of at least one course that is at least three weeks long, for 10 hours per week or 12 hours per month. A supporting person includes your spouse, the parent of the child, or the person who claimed the child as a dependant and who lived with you at any time in the year and at any time in the first 60 days of the following taxation year. An eligible child is defined as a child of the taxpayer or the taxpayer's spouse, or a child dependent on the taxpayer or the taxpayer's spouse and whose income for the year does not exceed the basic personal amount for the year. The child has to be less than 14 years of age at some time in the year. However, the age limit does not apply if, during the year, the child is dependent on the taxpayer or the taxpayer's spouse and has a mental or physical infirmity.

The maximum deduction is $12,668.00 for each child qualifying for the disability tax credit, $4,667.00 for the caregiver amount, but the maximum total deduction may not exceed two-thirds of your earned income. The deduction can only be claimed by the lower income person unless the lower income spouse attends secondary or post secondary school, is mentally or physically infirm, or for a period of at least two weeks was in a prison, hospital, or asylum. Childcare expenses can include day care, nursery school, day sports camp, lodging at a boarding school or camp, and certain babysitters. Complete Form T778, Calculation of Child Care Expenses Deduction, and file it with your income tax return.

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Attribution of Investment Income
Complex attribution rules prevent spouses from simply splitting joint investment income equally between them. Joint investment income includes interest on joint bank accounts, investment income deposited into joint brokerage accounts, income from jointly owned mutual funds and jointly held rental real estate, as well as capital gains from the disposition of jointly owned investments.

The attribution rules require that joint investment income be allocated between spouses based on each individual's contribution of the investment funds. Spouses with joint investments should be prepared to show the Canada Revenue Agency the source of the investment funds in support of their allocation of the investment income. This requires both spouses to keep track of the source of the funds used to acquire the joint investments.

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Union Dues are Deductible
If you pay trade union or professional organization dues, keep your receipts or proof of payment because they are deductible. With the exception of your T4 slip, do not include these receipts with your return. However, you should keep them in case Canada Revenue Agency asks to see them.

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