My spouse has the lower income and unemployment insurance was his only income for the past tax year. The program is not allowing him to claim the child care expenses as it says his earned income is 0 (but my income is higher so I cannot claim it either). Is this correct that employment insurance income does not allow you to claim a child care deduction? I found information online from Intuit that says it is earned income but for some reason the program is saying otherwise.
Employment insurance income is considered a part of Net income but is not considered earned income. If this is your spouse's only source of income and he has the lower net income, then child care expenses are generally not deductible by either of you. Exceptions to this would be if he were a student or has been certified by a medical practitioner of being incapable of caring for a child. For more info please see http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/214/wh/menu-eng.html and Open Form T778. The definition of earned income for purposes of Child care expenses is on Page 2
Employment insurance income is considered a part of Net income but is not considered earned income. If this is your spouse's only source of income and he has the lower net income, then child care expenses are generally not deductible by either of you. Exceptions to this would be if he were a student or has been certified by a medical practitioner of being incapable of caring for a child. For more info please see http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/214/wh/menu-eng.html and Open Form T778. The definition of earned income for purposes of Child care expenses is on Page 2
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