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Hugh_Montreal

Change parent that claims the daycare tax credit

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Hi, everyone.

 

I used to be able to do this in previous versions of Ufile, but can't seem to be able to in the 2013 version.

 

My wife received about $5000 in advance tax credit payments for our kids daycare in 2013 (we're in Québec), but Ufile wants to claim the daycare expenses on my provincial return, which puts my wife on the hook for repaying the $5000 to the provincial Govt.

 

This happened last year as well, but I was able to change that in Ufile's configuration and have her claim the expense, but I can't remember what I did back then and can't find a way to do this in 2013 anymore.

 

The kids are already set to "spouse to claim" on their "Interview" pages, but that doesn't seem to make a difference. Also note that my wife has the lower income of the two of us, so by law she should be the one claiming these expenses.

 

Any advice appreciated.

 

Many thanks!

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What do you mean by: "...but Ufile wants to claim the daycare expenses on my provincial return, which puts my wife on the hook for repaying the $5000 to the provincial Govt"?

 

The spouse with the lower net income must claim the child care expenses. This is a Canada Revenue Agency requirement.
 

A spouse with a higher net income may only claim child care expenses if one of the following conditions apply:

  • The other supporting person attended school part-time or full-time;
  • The other supporting person was incapable of caring for children because of mental or physical infirmity;
  • The other supporting person was in prison for at least two weeks;
  • You were separated from the other supporting person.

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Hi Gabriel and apologies if I was not clear.

 

My wife IS the spouse with the lower income. She is also the one that has received advance payments of the provincial child care tax credit in 2013 (about $5000).

 

Ufile correctly assigns the child care expenses to her Federal return, but then assigns these expenses to MY provincial return, which results in my wife having to pay the $5000 in tax back to Revenu Quebec.

 

Overall we even out, as I receive that money back on my return. But we first have to pay the $5000 she ows out of pocket and then wait for Revenu Quebec to reimburse me for that amount on my return. I know it's probably only a matter of a few weeks, but I'd like to avoid dipping into the line of credit for that if possible.

 

Last year I was able to change something in Ufile to have my wife claim the child care expenses on both her federal and provincial returns, which meant that she didn't have any amount due to Revenue Qc. But I don't remember what I did last year and no longer have the Ufile 2012 CD to try to open the 2012 tax file. And I can't seem to find a similar setting in Ufile 2013.

 

Hope this makes sense and thank you for your help so far.

 

H.

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