The Department of Finance has proposed legislation that would allow employment insurance (EI) recipients to claim child care and disability support deductions as coronavirus (COVID-19) income support recipients.
The proposed legislation would temporarily allow Canadians receiving EI and Quebec parental insurance plan (QPIP) benefits to make the same claims for child care expense and disability support deductions.
EI recipients would be able to claim child care expenses and the disability support deductions against their income from regular EI benefits (including EI special benefits) and QPIP benefits for 2020 and 2021.
EI and QPIP recipients are currently unable to deduct child care and disability support expenses against their EI and QPIP income. However, current law allows recipients of the Canada emergency response benefit (CERB) and other COVID-19 emergency income to deduct these expenses against the income they receive from such government assistance.
The child care expense and disability supports deductions generally provide tax relief (subject to limitations) for taxpayers that have incurred these expenses in order to earn employment or business income, pursue education or perform research.
Read a January 2021 report prepared by the KPMG member firm in Canada
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.