Daniel and Karen Chapman have three children, aged 2, 8 and 11 at the end of the year. The 8 year old is blind and therefore qualifies for the disability tax credit. The other two are in good mental and physical health. During the year Daniel had employment income of $113,000; this amount is net of $6,000 in employment deductions. Karen runs her own unincorporated business, which generated a net profit of $52,000. Karen also received $7,500 in eligible dividends during the year. Daniel and Karen paid $22,000 for in-home childcare during the year. They also paid $1,500 to send their eldest to summer camp for two weeks. During the year, Karen took a 10 week intensive marketing course from the local community college. She was in class for six hours a day, five days a week. Determine the maximum deduction for child care costs and indicate who should claim them?

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Maximum Deduction for Child Care Costs and Claiming Person Calculating the maximum deduction Co... View the full answer