Glossary
Child care expense deduction
Canadian ProgramsA tax deduction for child care costs that allows working parents to reduce their taxable income. The deduction generally must be claimed by the lower-income spouse. Eligible expenses include daycare, day camps, and some boarding school fees.
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Deduction
An amount subtracted from your income before tax is calculated, reducing the total tax you owe. Common deductions include RRSP contributions, child care expenses, and union dues.
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Net income
The amount of money you actually take home after all deductions. This is the number that matters for budgeting because it reflects what you actually have to work with each pay period.