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C. Tremblay (613) 957-2139
March 24, 1987
Dear Sirs:
Re: Child Care Expenses
This is in reply to your letter of November 19, 1986, wherein you requested our view as to the distinction between a day-camp and an overnight-camp as it applies to the $60 limitation of child care expenses.
The $60 per week limitation imposed under subparagraph 63(3)(a)(iii) of the Income Tax Act (the "Act") applies only to the expenses for the child's lodging at an overnight camp and not expenses incurred for child care services provided by the camp. Accordingly, if the overnight camp provides receipts which clearly itemize these expenses, those incurred for lodging will be limited to the $60 per week limitation and, this amount together with the amount of other qualifying child care expenses will be subject to the overall limitations imposed by section 63 of the Act. If no such itemized receipts are provided, the whole amount shown on the receipt will be subject to the $60 limitation set out in subparagraph 63(3)(a)(iii) of the Act. We should remind you that education, clothing, transportation, medical and hospital care do not qualify as child care expenses.
We have enclosed copies of Interpretation Bulletin 495 dated February 7, 1983, and Special Release dated June 21, 1985, which explain this deduction in greater detail.
We trust this will be of assistance to you.
Yours truly,
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
Enclosures