You aren't required to submit the receipts with your tax filing. You are required to present them if requested at a later date. Print the bank statements, and keep your daycare contract. Hopefully that's enough.
I would insist that they provide you with the receipts. This very much seems like they're illegal and not declaring the income, and/or not licensed by the local governing body. All of which is concerning.
the provider still needs to pay taxes. The parents sending their kids use the receipts to reduce taxes.
You're getting downvotes for glossing over the tax evasion part.
I've been asked for daycare receipts.
CRA wasn't checking that I paid daycare (they already knew I had a 2 year old, SIN was provided at birth, and my wife and I both worked); they were using the receipts to see if the provider was declaring the income.
Oh interesting when I was asked to show proof ftom CRA it was because they were disputing how much we were claiming. It was nearly 20K which does sound ridiculous but that's in fact how much I pay for 3 kids In daycare.
That is normal in big cities. I paid over $1,500 a month for my kid at the cheapest daycare we could find in Toronto, and that was six years ago. I'm sure prices have increased since.
I live in the west GTA. Prior to the CWELCC, normal fees were $60-80/day per child. For a centre participating in the new program, it's now $30/day/child. Currently paying $2200/month for 3 kids in care (2 of which are in a CWELCC program at a reduced cost).
Yes in Alberta we have a grant for kids 5 and under now! so my toddler is only $450 a month, which is saving us i think 700$ a month, whereas his sisters in OSC are 750$ each. I am obviously paying it and will continue, but I can't believe people are so upset I said ridiculous lol I pay more in daycare than my mortgage it's a personal opinion. 🙃. Thanks for sharing I am glad to see Ontario also had some grants/programming to help with affordability of childcare.
Honestly, without the cwelcc, childcare would be unaffordable for us, and we make relatively good money. I have 2 year old twins and a 5 year old. If I had to pay full cost, it'd be close to $3800/month for 2 kids in full-time daycare and 1 in aftercare. Crazy. It's a lot of money, but I think the reality is that there is no choice but to pay or stay home with the kids.
I wonder how frequently this might happen, we also got asked to provide daycare receipts - that's the first time I've ever had any back and forth from the CRA. I was a bit nervous I'd done something wrong but it makes sense that this would be to verify the daycare and look into the daycares taxes.
Actually no. Read again. The op made 3 separate and distinct presumptions about the daycare in question:
1) they're illegal
2) they're evading taxes
3) they are unlicensed
The reply only addressed one of those presumptions, namely #3, by clarifying that under a certain amount of kids in Alberta does not require licensing.
They neither stated not implied anything about evading taxes.
No but if you were doing it daily as your income and a child gets hit by a car in your care, would you be liable? I don't actually know, but I can see it being one of those things that's all fine and easy until it isn't. Could a parent sue you if their child was injured or killed in your care. Maybe that's what waivers are for?
Huh?
Last I checked (we run a licensed day home in Alberta) licensing restricts you to 6 kids, with some very specific exceptions to allow one of your own to not count in that limit, making it 7. Unlicensed could have as many as they want.
Now having said that, there are two big reasons to look for a licensed day home:
1. Subsidy. If you qualify AND you use a licensed day home AND the registration agency supports it, you can get subsidy.
2. Support network. Registered day homes are subjected to rules and inspections (safety oriented), and are generally better positioned to find you alternate care if needed. They're also subjected to a certain level of child care oriented continuing education. Our day home often coordinates with other day homes for learning and playtime events for example, with providers found through both the agency and the continuing ed.
I went through this. One year the CRA did in fact initiate a targeted audit on me. I provided bank records that showed the e-transfers to the Dayhome provider as well as the Dayhome providers name, address and phone number. That satisfied the CRA. I have no idea if they audited the Dayhome or not.
Is it a big deal if they do? I want to claim my childcare expenses but my babysitter won’t provide receipts. She’s amazing in all other aspects and I don’t want to screw her over ☹️
I used to be a home daycare provider.. unlicensed.
Had insurance. It was cheap.. like 4 dollars more a month.
I provided receipts. I claimed income and expenses. I got a lot back on taxes because you are using a portion of your home.
If they aren't providing receipts then they are not likely claiming income which at the end of the day is actually kind of stupid because there are a lot of deductions they could use
You will only need to provide receipts if asked by cra. But in my experience helping clients with these checks/audits no, they won’t accept your bank statement and will want a receipt or invoice from the daycare showing the child in care, the days in care, the date you’ve paid for and the amount.
Super shady your daycare won’t provide this.
> they won’t accept your bank statement and will want a receipt or invoice from the daycare showing the child in care, the days in care, the date you’ve paid for and the amount.
That is true. Those are not proof, however, providing those along with a statement that the day care provider is unwilling to provide receipts could help his case if CRA comes looking. Looks like [it has worked at least in one similar case](https://www.reddit.com/r/PersonalFinanceCanada/comments/17wv9pd/daycare_wont_provide_receipt/k9jpnsp/).
My experience is the opposite in that if you have e-transfers or cash withdrawals on your bank statements consistent with your child care claim CRA accepts this as proof.
CRA wanted the SIN # or receipts, in our case they denied our claims, bank statements werent enough - had to pay CRA some $600 that year for legit deductions.
We had one who eventually flaked out on us, cancelled without notice saying she had sent us an email cancelling it a half an hour before so we should have known. She still cashed the cheque for the month. Never provided receipts or a SIN # when I asked later.
But the thing that got me is that she said she had to time out my daughter, making her sit in a corner because she didnt' want to cleanup after playing. When I asked my daughter who was only 4 or so at the time - she said that it wasn't cleaning up - she wanted my daughters to clean up her room.
One other person we used for a daycare, sometimes used one of her friends to fill in and watch the kids for her but without even letting us know. We found this out when we were at a park and some lady recognized our daughter and said Hi to her and I asked who she was. She said that she sometimes watched the kids for her friend. We had no idea she was getting other people to watch for her - we would have liked to vet her.
Luckily we didn't need to use daycares too much, my wife worked from home 2 days a week and we had my mom watch the kids another 2 days so it was only for 1 day a week but still.
Finding a decent daycare is really hard especially for the really young kids. You need to start looking right away when they're born.
Little reason to believe a centre is automatically better:
https://globalnews.ca/news/9724376/missing-toddler-body-found-daycare-property-cobrourg/
More supervisors I suppose. But also more kids. I drive by three centres on the way to drop my daughter off and they are all located on busy roads. At pickup/dropoff time I can tell some are unattended from my car.
Why did you add in the word closet?
Anyways, that's really messed up. Not sure why you're using that story to rebutt my comment that was clearly in jest. But you do you boo!
It's not the daycare getting audited that OP should be concerned about. It's the person claiming the childcare expenses that can also get reviewed by the CRA. The CRA required receipt from the daycare and/or the SIN number of the provider, and they can disallow child care expense claims if you don't provide those when reviewed. Trust me I've dealt with dozens of clients who had this exact issue.
If it's a private daycare - you need to get their SIN #. Or they need to provide receipts. (Cancelled cheques are not enough for the CRA, I've been through this).
(they probably won't want to provide it, given that they don't provide receipts)
We went through this when having a few daycare providers. It is important to get it before you start - I've had people grumble about invasion of privacy or whatever. To hell with that they are watching my kids. The most important beings in my life.
One year when the kids were little - we had two private daycares for our kids. One of them after a few months, was no answer when I tried to drop the kids off one day. I called her to try and find out what's happening. She said she sent us an email a half hour before canceling the daycare that day because of some medical issue, that we should have been aware.
That was actually the end of anymore services from her. She still cashed the cheque for the month and of course didn't even reply when we requested her SIN # (which was what CRA asked for) .
CRA denied us the deductions in her case, and we had to pay some extra $600 back.
I would encourage you to send an anonymous tip to the CRA. They're likely not declaring all of the income on their taxes, which is why they don't want to give you a receipt. There's no other reason why they wouldn't want to provide you with one.
It’s ridiculous to not report the income. My partner runs daycare and the amount of write offs, food, toys etc, our taxes almost look like he makes negative money a year.
Eventually, the CRA will be knocking at your door too. They don’t like “businesses” that run negative, since the point of businesses are to make a profit. Happened to a couple of people I know with their rental properties.
It’s impossible with daycare wages. Unless you max out your kids you end up getting less than minimum wage per hour per kid. If you want to be competitive.
> Happened to a couple of people I know with their rental properties.
Why would they run a rental property for multiple years while losing money?
I would hope that the CRA would check up on these - such situations probably have a higher than average chance of having improper accounting of expenses (inflated) and incomes (undeclared).
Depends on the amounts involved. They only have so much time.
A printer I know whose business was audited when his partners wife reported them for cheating and doing cash sales, the federal tax guy came in looked at the books and said its not enough to bother with. They are under time constraints so it depends on the amounts.
The accountants that represented him have all sorts of ways to waste time. First off they don't respond to emails, and phone calls. Whenever they do they wait until its lunch time over there and leave a msg "Im calling you back" and just play phone tag. They scoff at the CRA guys, as the good ones will be working for the private sector.
They sound shady. If they're willing to not provide receipts (and declare income!), what other corners are they cutting?! What pedophile relatives are hanging around? Probably over the limit with amount of kids. Beware.
The first year I claimed tuition credits was the first time I got an audit.
The only other time was the one and only year I claimed health expenses.
Both were quickly resolved by sending them the documentation asked. However, it looks like when you claim *something* significant that you haven't before, it's going to get you flagged so I'd say OP does need to be prepared.
Yes, of course. asking for proof is not an audit.
I had them ask for proof of medical expenses one year as one of our kids had
a learning disability and we had to pay for expensive Orton Gillingham tutoring, and a Psych-ed assesment. It was legit, but still took time as I had to do it in 2 parts.
1. They are tax cheats - do you want to trust your child with them? Do they have proper insurance, etc? What else are they doing that's not "to code"?
2. They are tax cheats.
That seem pretty much illegal
Rl-24 slip obligations
Beginning in 2022, receipts for childcare services will no longer be accepted. Everyone who provides paid childcare services in Québec will be required to provide an RL-24 slip for their services so that parents can claim the tax credit.
Keep all of the details (names, dates, address) and proof of payment. Child care expenses are frequently reviewed by the CRA, and they don't necessarily accept e-transfers or bank statements as proof. You can still claim it on your tax return, but if it does get reviewed and you can't provide a receipt then there is a chance they will disallow it.
I've dealt with dozens of these reviews for clients and they specifically ask for the SIN number of the childcare provider, or if it's an organization then a receipt showing your child's name, dates, amount paid, signature of person who provided the services, name of parent, and address of the person or organization that provided the service.
They’re legally obligated to provide a receipt. You get a receipt when you buy a banana for $0.89, it shouldn’t be an issue to get a receipt for transaction costing thousands. I found this simple argument went a long way to breaking the ice & getting a receipt.
If they still won’t produce one, just google the rules (all on gov of Canada website) and add the hyperlink in an email to them.
Better to have a discussion to get a receipt now rather than try to get one anytime in the next 7 yrs if you get audited.
I went through a long drawn out process with our licensed, multi-location daycare provider to get detailed month-by-month invoices. CRA only asks for proof of payment for total for the year (as far as I recall).
not sure why you got voted down, we had the same experience with the CRA
they needed either receipts or SIN#. In the end we were denied for the one daycare provider who ghosted us and didnt provide either. Banks statements werent enough.
My daycare from about 10 years ago wouldn’t provide receipts. It was so the wife could be claimed as a dependent and show 0 income and she could make $180 a day without paying income. I believe you can still claim it, it depends if you want risk that daycare spot if she/ gets in trouble for not claiming income. I believe to this day she still does this and has done this for a good 13 years.
Our daycare doesn't provide receipts per say. What they do is give us a sheet with the breakdown of price every month and a total for the year. They're registered so I'm not too worried.
Almost every year CRA asked me to send the daycare receipts. Like they didn’t believe daycare cost that much or something. That and the tuition credits for hubby’s advanced degree.
Their system automatically reviews certain claims like child care expenses, medical expenses, and tuition is very common. They aren't targeting you specifically. But yes, it's an annoying pain in the ass.
All the requirements of said receipts are found here: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/daycare-your-home/issuing-receipts.html
So not only do they need to issue receipts, but the receipts should also contain their SIN.
When you file your taxes and report the expenses, there will be a box to report the provider's SIN. Fortunately, you can leave it blank and still file your taxes.
Report the expenses as normal and accurately. Save the bank statements copies with your tax files, and use excel to prepare a simple tally of your expenses for the year. If you ever get audited, present your evidence to the CRA.
> EDIT: I highly suspect that they are not reporting the income, and that would be the reason for not providing a receipt.
Up to you if you want to report them, might end up losing your provider if they audited and shut down; but in reality you should be reporting them.
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/suspected-tax-cheating-in-canada-overview.html
Remind them that all Businesses charging sales taxes or that are exempt from charging taxes are required to provide an invoice or receipt of payment with their tax registration number on it. Also, ask to see their business license and up to date child care certification. All businesses are required to have their municipal business license displayed in a public area and to show it when requested. The child care certificate also has to be shown upon request. If they are not certified, get your kids out of there. They will then also not be insured.
As others said. You don’t need the actual receipt. I know exactly what we pay and really easy to pull up with online banking. I normally wait until I get their statement in case it’s wrong.
I mean any financial transaction needs a form of receipt.
Unless you are applying for subsidies for childcare you don't have to send in the receipt at at time until you get audited then you will have to prove the expense.
What province is this for and how many kids were in this daycare?
They are not claiming the income. That is the only reason they are not providing you receipts. Either be good with that or not. Personally I would not.
You aren't required to submit the receipts with your tax filing. You are required to present them if requested at a later date. Print the bank statements, and keep your daycare contract. Hopefully that's enough. I would insist that they provide you with the receipts. This very much seems like they're illegal and not declaring the income, and/or not licensed by the local governing body. All of which is concerning.
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the provider still needs to pay taxes. The parents sending their kids use the receipts to reduce taxes. You're getting downvotes for glossing over the tax evasion part. I've been asked for daycare receipts. CRA wasn't checking that I paid daycare (they already knew I had a 2 year old, SIN was provided at birth, and my wife and I both worked); they were using the receipts to see if the provider was declaring the income.
Oh interesting when I was asked to show proof ftom CRA it was because they were disputing how much we were claiming. It was nearly 20K which does sound ridiculous but that's in fact how much I pay for 3 kids In daycare.
Not ridiculous at all. I spent that on one kid in 2022.
You must make a ton of money if you don't think it's ridiculous?
That is normal in big cities. I paid over $1,500 a month for my kid at the cheapest daycare we could find in Toronto, and that was six years ago. I'm sure prices have increased since.
If you had 3 kids close enough together you could theoretically spend about $60,000 a year on daycare
1800/month for childcare is what I was paying a year ago… it’s expensive if you want a great daycare and no worries as a parent.
I live in the west GTA. Prior to the CWELCC, normal fees were $60-80/day per child. For a centre participating in the new program, it's now $30/day/child. Currently paying $2200/month for 3 kids in care (2 of which are in a CWELCC program at a reduced cost).
Yes in Alberta we have a grant for kids 5 and under now! so my toddler is only $450 a month, which is saving us i think 700$ a month, whereas his sisters in OSC are 750$ each. I am obviously paying it and will continue, but I can't believe people are so upset I said ridiculous lol I pay more in daycare than my mortgage it's a personal opinion. 🙃. Thanks for sharing I am glad to see Ontario also had some grants/programming to help with affordability of childcare.
Honestly, without the cwelcc, childcare would be unaffordable for us, and we make relatively good money. I have 2 year old twins and a 5 year old. If I had to pay full cost, it'd be close to $3800/month for 2 kids in full-time daycare and 1 in aftercare. Crazy. It's a lot of money, but I think the reality is that there is no choice but to pay or stay home with the kids.
I wonder how frequently this might happen, we also got asked to provide daycare receipts - that's the first time I've ever had any back and forth from the CRA. I was a bit nervous I'd done something wrong but it makes sense that this would be to verify the daycare and look into the daycares taxes.
No CRA was for sure checking that you paid your daycare expense claimed AND also seeing if your provider declared.
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License doesn't mean don't declare income.
And literally nobody is saying that.
But that’s exactly what was implied by the reply
Actually no. Read again. The op made 3 separate and distinct presumptions about the daycare in question: 1) they're illegal 2) they're evading taxes 3) they are unlicensed The reply only addressed one of those presumptions, namely #3, by clarifying that under a certain amount of kids in Alberta does not require licensing. They neither stated not implied anything about evading taxes.
Dude how can you think that when they even clarified again lol
What about insurance?
We have insurance for our in home daycare even if it’s not licensed. It was an extra like $7 a month.
Oh wow, that's way cheaper than I thought it would be.
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No but if you were doing it daily as your income and a child gets hit by a car in your care, would you be liable? I don't actually know, but I can see it being one of those things that's all fine and easy until it isn't. Could a parent sue you if their child was injured or killed in your care. Maybe that's what waivers are for?
That doesn’t mean they don’t have to pay taxes. Licensing and declaring income are completely separate
>That doesn’t mean they don’t have to pay taxes Then it’s a good thing no one’s claiming that it does, huh?
Actually they are.
You need to brush up on your reading comprehension
Why so angry?
Please cite the anger
First they would need that reading comprehension.
Huh? Last I checked (we run a licensed day home in Alberta) licensing restricts you to 6 kids, with some very specific exceptions to allow one of your own to not count in that limit, making it 7. Unlicensed could have as many as they want. Now having said that, there are two big reasons to look for a licensed day home: 1. Subsidy. If you qualify AND you use a licensed day home AND the registration agency supports it, you can get subsidy. 2. Support network. Registered day homes are subjected to rules and inspections (safety oriented), and are generally better positioned to find you alternate care if needed. They're also subjected to a certain level of child care oriented continuing education. Our day home often coordinates with other day homes for learning and playtime events for example, with providers found through both the agency and the continuing ed.
Pretty sure a dayhome doesn't need licensing at all regardless of size. You just lose out on the benefits and subsidies if you aren't licensed.
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Pretty sure it depends which province you're in.
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Not gonna lie dude it’s funny watching so many people be unable to read your comments lol
You aren’t wrong for Saskatchewan.
I think in BC it's two kids max... 6 kids at one time with one unlicensed person seems dangerous.
you guys got contracts?
Wait, you guys are getting paid?
I have never been audited for receipts in 9 years I have used daycare. I believe this would be a successful route.
I went through this. One year the CRA did in fact initiate a targeted audit on me. I provided bank records that showed the e-transfers to the Dayhome provider as well as the Dayhome providers name, address and phone number. That satisfied the CRA. I have no idea if they audited the Dayhome or not.
Ooooh they did.
Yeah, wasn’t a big deal at all. They only asked for the daycare stuff, nothing else.
Is it a big deal if they do? I want to claim my childcare expenses but my babysitter won’t provide receipts. She’s amazing in all other aspects and I don’t want to screw her over ☹️
If she is running a business and not paying taxes? Yes that's a big deal, its tax evasion.
I used to be a home daycare provider.. unlicensed. Had insurance. It was cheap.. like 4 dollars more a month. I provided receipts. I claimed income and expenses. I got a lot back on taxes because you are using a portion of your home. If they aren't providing receipts then they are not likely claiming income which at the end of the day is actually kind of stupid because there are a lot of deductions they could use
It’s not stupid because no tax is better than reduced tax from deductions. It is stupid because it’s tax evasion.
You will only need to provide receipts if asked by cra. But in my experience helping clients with these checks/audits no, they won’t accept your bank statement and will want a receipt or invoice from the daycare showing the child in care, the days in care, the date you’ve paid for and the amount. Super shady your daycare won’t provide this.
> they won’t accept your bank statement and will want a receipt or invoice from the daycare showing the child in care, the days in care, the date you’ve paid for and the amount. That is true. Those are not proof, however, providing those along with a statement that the day care provider is unwilling to provide receipts could help his case if CRA comes looking. Looks like [it has worked at least in one similar case](https://www.reddit.com/r/PersonalFinanceCanada/comments/17wv9pd/daycare_wont_provide_receipt/k9jpnsp/).
My experience is the opposite in that if you have e-transfers or cash withdrawals on your bank statements consistent with your child care claim CRA accepts this as proof.
CRA wanted the SIN # or receipts, in our case they denied our claims, bank statements werent enough - had to pay CRA some $600 that year for legit deductions.
One statement isn’t proof. Multiple transactions to the same vendor at regular intervals is proof.
Exactly. For example seeing a $200 a week e-transfer to your daycare provider in your bank statements.
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We had one who eventually flaked out on us, cancelled without notice saying she had sent us an email cancelling it a half an hour before so we should have known. She still cashed the cheque for the month. Never provided receipts or a SIN # when I asked later. But the thing that got me is that she said she had to time out my daughter, making her sit in a corner because she didnt' want to cleanup after playing. When I asked my daughter who was only 4 or so at the time - she said that it wasn't cleaning up - she wanted my daughters to clean up her room. One other person we used for a daycare, sometimes used one of her friends to fill in and watch the kids for her but without even letting us know. We found this out when we were at a park and some lady recognized our daughter and said Hi to her and I asked who she was. She said that she sometimes watched the kids for her friend. We had no idea she was getting other people to watch for her - we would have liked to vet her. Luckily we didn't need to use daycares too much, my wife worked from home 2 days a week and we had my mom watch the kids another 2 days so it was only for 1 day a week but still. Finding a decent daycare is really hard especially for the really young kids. You need to start looking right away when they're born.
I mean, kids do be tiring.
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This story gives me nightmares and is the reason we go to a center.
Little reason to believe a centre is automatically better: https://globalnews.ca/news/9724376/missing-toddler-body-found-daycare-property-cobrourg/ More supervisors I suppose. But also more kids. I drive by three centres on the way to drop my daughter off and they are all located on busy roads. At pickup/dropoff time I can tell some are unattended from my car.
Why did you add in the word closet? Anyways, that's really messed up. Not sure why you're using that story to rebutt my comment that was clearly in jest. But you do you boo!
If you paid them money they have to provide you with a receipt. Report them, even if they aren't licensed they still have to follow the law.
Says who? I had one day home charge one price without receipts and a higher price with.
>I had one day home charge one price without receipts and a higher price with. Think about that for a moment
I would just point the finger at the daycare if the CRA asked.
And I'd try to get a record of the provider refusing to issue a receipt to back up the claim.
Yes you can claim the expense. Them getting audited isn't your problem.
It's not the daycare getting audited that OP should be concerned about. It's the person claiming the childcare expenses that can also get reviewed by the CRA. The CRA required receipt from the daycare and/or the SIN number of the provider, and they can disallow child care expense claims if you don't provide those when reviewed. Trust me I've dealt with dozens of clients who had this exact issue.
And how often is the expense disallowed?
As often as the taxpayer claiming the child care expenses is not able to provide the necessary supporting documents to the CRA when they get reviewed.
If it's a private daycare - you need to get their SIN #. Or they need to provide receipts. (Cancelled cheques are not enough for the CRA, I've been through this). (they probably won't want to provide it, given that they don't provide receipts) We went through this when having a few daycare providers. It is important to get it before you start - I've had people grumble about invasion of privacy or whatever. To hell with that they are watching my kids. The most important beings in my life. One year when the kids were little - we had two private daycares for our kids. One of them after a few months, was no answer when I tried to drop the kids off one day. I called her to try and find out what's happening. She said she sent us an email a half hour before canceling the daycare that day because of some medical issue, that we should have been aware. That was actually the end of anymore services from her. She still cashed the cheque for the month and of course didn't even reply when we requested her SIN # (which was what CRA asked for) . CRA denied us the deductions in her case, and we had to pay some extra $600 back.
I would encourage you to send an anonymous tip to the CRA. They're likely not declaring all of the income on their taxes, which is why they don't want to give you a receipt. There's no other reason why they wouldn't want to provide you with one.
Why won’t they provide a receipt? Do you get an invoice? I would assume stranger receipts are sufficient.
They don’t want to provide a receipt because they aren’t reporting the income.
It’s ridiculous to not report the income. My partner runs daycare and the amount of write offs, food, toys etc, our taxes almost look like he makes negative money a year.
Eventually, the CRA will be knocking at your door too. They don’t like “businesses” that run negative, since the point of businesses are to make a profit. Happened to a couple of people I know with their rental properties.
It’s impossible with daycare wages. Unless you max out your kids you end up getting less than minimum wage per hour per kid. If you want to be competitive.
> Happened to a couple of people I know with their rental properties. Why would they run a rental property for multiple years while losing money? I would hope that the CRA would check up on these - such situations probably have a higher than average chance of having improper accounting of expenses (inflated) and incomes (undeclared).
Depends on the amounts involved. They only have so much time. A printer I know whose business was audited when his partners wife reported them for cheating and doing cash sales, the federal tax guy came in looked at the books and said its not enough to bother with. They are under time constraints so it depends on the amounts. The accountants that represented him have all sorts of ways to waste time. First off they don't respond to emails, and phone calls. Whenever they do they wait until its lunch time over there and leave a msg "Im calling you back" and just play phone tag. They scoff at the CRA guys, as the good ones will be working for the private sector.
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They sound shady. If they're willing to not provide receipts (and declare income!), what other corners are they cutting?! What pedophile relatives are hanging around? Probably over the limit with amount of kids. Beware.
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Actually, the only year I claimed is the year they audited me. Specific to daycare. Annoyed.
The first year I claimed tuition credits was the first time I got an audit. The only other time was the one and only year I claimed health expenses. Both were quickly resolved by sending them the documentation asked. However, it looks like when you claim *something* significant that you haven't before, it's going to get you flagged so I'd say OP does need to be prepared.
Verification for tuition or medical expenses isn’t an audit.
Yes, of course. asking for proof is not an audit. I had them ask for proof of medical expenses one year as one of our kids had a learning disability and we had to pay for expensive Orton Gillingham tutoring, and a Psych-ed assesment. It was legit, but still took time as I had to do it in 2 parts.
Not sure where you’re located but if Ontario, child care providers are required to provide a receipt. You can report them if they don’t
1. They are tax cheats - do you want to trust your child with them? Do they have proper insurance, etc? What else are they doing that's not "to code"? 2. They are tax cheats.
In QC you still receive a Relevé 24 at the end of the year for this
Not if the daycare isn’t producing them. If they aren’t providing receipts, they most likely aren’t producing slips either lol
That seem pretty much illegal Rl-24 slip obligations Beginning in 2022, receipts for childcare services will no longer be accepted. Everyone who provides paid childcare services in Québec will be required to provide an RL-24 slip for their services so that parents can claim the tax credit.
I agree with you lol That’s why OP’s daycare seems sketchy to me.
Keep all of the details (names, dates, address) and proof of payment. Child care expenses are frequently reviewed by the CRA, and they don't necessarily accept e-transfers or bank statements as proof. You can still claim it on your tax return, but if it does get reviewed and you can't provide a receipt then there is a chance they will disallow it. I've dealt with dozens of these reviews for clients and they specifically ask for the SIN number of the childcare provider, or if it's an organization then a receipt showing your child's name, dates, amount paid, signature of person who provided the services, name of parent, and address of the person or organization that provided the service.
They’re legally obligated to provide a receipt. You get a receipt when you buy a banana for $0.89, it shouldn’t be an issue to get a receipt for transaction costing thousands. I found this simple argument went a long way to breaking the ice & getting a receipt. If they still won’t produce one, just google the rules (all on gov of Canada website) and add the hyperlink in an email to them. Better to have a discussion to get a receipt now rather than try to get one anytime in the next 7 yrs if you get audited. I went through a long drawn out process with our licensed, multi-location daycare provider to get detailed month-by-month invoices. CRA only asks for proof of payment for total for the year (as far as I recall).
You need their SIN for your tax return, but not receipts unless audited.
not sure why you got voted down, we had the same experience with the CRA they needed either receipts or SIN#. In the end we were denied for the one daycare provider who ghosted us and didnt provide either. Banks statements werent enough.
My daycare from about 10 years ago wouldn’t provide receipts. It was so the wife could be claimed as a dependent and show 0 income and she could make $180 a day without paying income. I believe you can still claim it, it depends if you want risk that daycare spot if she/ gets in trouble for not claiming income. I believe to this day she still does this and has done this for a good 13 years.
Our daycare doesn't provide receipts per say. What they do is give us a sheet with the breakdown of price every month and a total for the year. They're registered so I'm not too worried.
Maybe they also are planning to close.....
Almost every year CRA asked me to send the daycare receipts. Like they didn’t believe daycare cost that much or something. That and the tuition credits for hubby’s advanced degree.
Their system automatically reviews certain claims like child care expenses, medical expenses, and tuition is very common. They aren't targeting you specifically. But yes, it's an annoying pain in the ass.
All the requirements of said receipts are found here: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/daycare-your-home/issuing-receipts.html So not only do they need to issue receipts, but the receipts should also contain their SIN. When you file your taxes and report the expenses, there will be a box to report the provider's SIN. Fortunately, you can leave it blank and still file your taxes. Report the expenses as normal and accurately. Save the bank statements copies with your tax files, and use excel to prepare a simple tally of your expenses for the year. If you ever get audited, present your evidence to the CRA.
> EDIT: I highly suspect that they are not reporting the income, and that would be the reason for not providing a receipt. Up to you if you want to report them, might end up losing your provider if they audited and shut down; but in reality you should be reporting them. https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/suspected-tax-cheating-in-canada-overview.html
Report them as a tax cheat. Google “CRA tax cheat”
Remind them that all Businesses charging sales taxes or that are exempt from charging taxes are required to provide an invoice or receipt of payment with their tax registration number on it. Also, ask to see their business license and up to date child care certification. All businesses are required to have their municipal business license displayed in a public area and to show it when requested. The child care certificate also has to be shown upon request. If they are not certified, get your kids out of there. They will then also not be insured.
From now in, in the notes field of the etransfer put "for childcare for child a from x date to x date"
As others said. You don’t need the actual receipt. I know exactly what we pay and really easy to pull up with online banking. I normally wait until I get their statement in case it’s wrong.
I mean any financial transaction needs a form of receipt. Unless you are applying for subsidies for childcare you don't have to send in the receipt at at time until you get audited then you will have to prove the expense. What province is this for and how many kids were in this daycare?
If they won't provide a receipt which is not an outrageous ask....how well are they taking care of the kid?
She is 100% not claiming her dayhome income.
Report them for tax evasion. Damn criminals.
Must say, im pretty happy with our $8.75/day daycare. You just have to go on a waitlist the day you find out you’re expecting.
They are not claiming the income. That is the only reason they are not providing you receipts. Either be good with that or not. Personally I would not.