The Alberta Government introduced the new Working Parents Benefit to support working parents who need and have paid for child care so they can continue working during the pandemic.
Applications for the benefit opened from March 1, to March 6, depending on where you live. The value of the Working Parents Benefit is $561 per child.
Eligibility Requirements for Claiming WFH Expenses
you had a household income of $100,000 or less in the 2020 tax year
you paid $561 per child or more for 3 months of child care between April 1, 2020 and December 31, 2020
you are a Canadian citizen or a permanent resident living in Alberta
you are the parent or legal guardian of a child who was born on or after February 29, 2008
Eligible Child Care Providers
Receipts, bills or invoices are required. Child care must have been provided by an eligible child care provider.
Eligible
a licensed daycare
a licensed out-of-school care
a licensed group family child care
an approved family day home
a private day home
a nanny
any other child care provider, licensed or unlicensed
Not Eligible
The child’s father or mother,
your spouse or common law partner
someone who is dependent on you
someone who is dependent on your spouse or common law partner
How to Apply
Applications may be made on the Government of Alberta website.
The deadline to apply is March 31, 2021.
A MyAlberta Digital ID account is required to apply for the benefit.
Shared Custody
The first parent to submit their application will receive the benefit.
Tax Considerations
The Alberta Working Parents Benefit is not taxable. However, recipients are required to deduct the benefit received from their child care expenses on their 2020 personal income tax return.
In Closing
We understand that these are challenging times for many individuals and families in Edmonton. We are working diligently at Clearly Financials to support our local communities through these unprecedented changes.
Realize that you are not alone, that we are in this together and most importantly that there is hope.
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Disclaimer
This is a summarized version of complex matters that are rapidly changing. The preceding information is provided for general, educational purposes only. Speak with one of our team members if you have any questions about your specific accounting or tax situation.
Clearly Financials offers Smart Accounting and corporate tax services to small businesses in Edmonton, AB. We provide a full suite of services including: Bookkeeping, Payroll, GST filing, Notice to Reader Financial Statements, and Corporate Tax Returns.
We enjoy helping small business owners get setup and hit the ground running. We offer Business Foundation Services which include business plan creation and business structure selection (e.g. to incorporate a business, or operate as a sole-proprietor).
Our Business Performance Management services help small business owners grow their companies, and their profits through goal-setting, budgeting and forecasting.
Our office is located in Old Strathcona in Edmonton, Alberta.