The 50% reduction in the additional contribution for the second child in subsidized childcare applies retroactively for 2015. Parents must calculate their additional contribution without taking this reduction into account when filing their tax returns for 2015.
In this respect, Revenu Québec will implement the necessary measures to ensure that the parents concerned by this change can benefit from the reduction in their childcare rate for 2015.
Childcare expenses paid in Québec are eligible for the federal deduction for childcare expenses. Since Revenu Québec will refund a portion of childcare costs after production of the federal income tax return, parents who have benefited from the federal deduction for childcare with regard to the additional contribution could have to contribute again for the 2015 tax year by the Canada Revenue Agency.
Even considering a refund of a portion of the federal deduction for childcare expenses, the reduction in childcare expenses for a second child in subsidized childcare will result in substantial savings for these families.
For instance, a family with a $100 000 income could save $292 in childcare expenses for 2015, namely:
|Additional contribution||Federal assistance(1)||Gain for the family|
|Full rate for the 2nd child||748||235||–|
|Half price for the 2nd child||374||153||–|