How do I claim the expenses of an employee-nanny and what expenses can I claim?

ericjweaver · ‎October 29, 2019

We employed a nanny last year. To do so, we obtained a business number, remitted to CRA the deductions (tax, ei, cpp) and the employer top-ups (ei, cpp), and provided to her a T4.

In doing our taxes, how do we claim these expenses?

The reason for my confusion is that turbotax prompts me for "child care receipts". We don't have receipts, just the payroll stubs and T4 we issued to the nanny. Is there something I'm missing? Am I supposed to enter the child care expenses differently? Or do I just include the amount as a "receipt"? Do I need a more advanced version of turbotax?

Second question: what to claim. I assume that we claim her gross salary plus all employer top-ups.

Delphision · ‎October 29, 2019

You will claim her gross salary plus the employer portion of EI and CPP. Your support consists of the copies of the T4 and summary you sent to CRA in February. They seem to be more interested in gross expenses compared to earnings.

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tokomak084 · ‎October 29, 2019

Where do we record this claim? as a receipt?

Delphision · ‎October 29, 2019

As a child care expense. It can be added as a receipt.

rogerp · ‎October 29, 2019

i paid only 1 nanny for my 3 children, how will i report this expenses? do i have to sub-divide the gross expenses for the 3? thanks

taxnano · ‎October 29, 2019

Report the total there is no need to subdivide. As long as you report the correct amount you should be fine.

art-lightstone · ‎October 29, 2019

Where do we enter this information? Turbo Tax seems to not provide us with the option to enter a nanny's gross salary or deductions.

Delphision · ‎October 29, 2019

Report the total of the wages and source deductions. CRA will call for receipts if they want to see the expenses. Assuming you are using the online version, go to deductions, child care expenses, and child care receipt summary.

chriscom84 · ‎October 29, 2019

Is this considered as business? If so, do we use the "Statement of Business or Professional Activities" form(T2125)? Which line are we supposed to enter the 'gross salary plus the employer portion of EI and CPP'?

taxnano · ‎October 29, 2019

Enter the entire amount into form T778 as child care expense. It is a business without income because you would have been issued business payroll number. So you can enter the total amount unto line 9060. I believe the outcome will be the same.

How do I claim the expenses of an employee-nanny and what expenses can I claim?

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