: Taxes and childcare expenses deduction for a dual-income couple in Alberta? We live in Alberta and need to know if we should obtain a receipt for childcare. We paid 00 last year. My common law husband made 000 last

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Generally speaking, child care expenses are deductible on the tax return of the spouse with the lower net income, and at your income level, a 00 deduction would be worth a reduction in taxes of 0, on your 2011 tax return.

So if you'd like to reduce your taxes by 0, do ask for that receipt – and yes, a receipt is required. Refer to Canada Revenue Agency's Form T778 - Child Care Expenses Deduction for 2011. Quote:

Supporting documents – The individual or organization who received the
payments must give you a receipt showing information about the
services provided. When the child care services are provided by an
individual, you will need the social insurance number of the
individual. Do not send receipts with your return, but keep them in
case we ask to see them. If you file your return electronically using
EFILE, show your receipts to your EFILE service provider.

Whether or not you get a receipt (and if you don't, you forgo the 0), your childcare provider is still required to declare their self-employment income, and their net income (i.e. after any costs incurred doing the business) would be subject to income tax.

If you think you'd be doing somebody a favor by not asking for a receipt, you'd potentially be helping somebody commit a tax fraud.