CARE Tax Credit Enhancement
In 2019, the Ontario government introduced the Ontario Childcare Access and Relief from Expenses (CARE) refundable tax credit for families with income of less than $150,000. The credit is computed as the aggregate eligible childcare expenses multiplied by a set percentage, depending on family income.
The government has proposed a temporary increase to the CARE credit for 2021 which would provide a one-time top-up of 20 per cent of the 2021 entitlement otherwise determined. On average, it is estimated that this addition will increase support to over 300,000 recipients from about $1,250 to $1,500.