Comments on Income Splitting -> Paying an older child to babysit a younger child

[alanbrenton]

Is there a restriction on how old the child looker after the sibling should be? The 101 Tax Secrets for Canadians book mentions that a child who's at least 18 could look after his/her siblings 16 and younger.

It does make sense if the older child is financially responsible as the tax deductibility for the lower income parent could be anywhere from 26% to 46% of the $7,000 (younger than 7) and $4,000 (7-16 yrs. old).


Could anyone confirm why it has to be 18 when babysitting courses are targeted to children 9-11 years of age?
Could the older child deposit the earnings into a RESP while he is below 21 years of age?

[ghostryder]

Is there a restriction on how old the child looker after the sibling should be? The 101 Tax Secrets for Canadians book mentions that a child who's at least 18 could look after his/her siblings 16 and younger.

It does make sense if the older child is financially responsible as the tax deductibility for the lower income parent could be anywhere from 26% to 46% of the $7,000 (younger than 7) and $4,000 (7-16 yrs. old).


Could anyone confirm why it has to be 18 when babysitting courses are targeted to children 9-11 years of age?
Could the older child deposit the earnings into a RESP while he is below 21 years of age?



1. Probably because the child care provider CANNOT be the childs mother, father, or a person under the age of 18 that is related to the taxpayer.

http://www.cra-arc.gc.ca/E/pub/tp/it495r3/it495r3-e.html#P82_8585

You can have you 17yr old baby sit, and pay them what ever you want. You just can't deduct what you paid as childcare expenses.

[alanbrenton]

1. Probably because the child care provider CANNOT be the childs mother, father, or a person under the age of 18 that is related to the taxpayer.

http://www.cra-arc.gc.ca/E/pub/tp/it495r3/it495r3-e.html#P82_8585

You can have you 17yr old baby sit, and pay them what ever you want. You just can't deduct what you paid as childcare expenses.

Thanks for the clarification ghostryder.

[dlander]

It has to work this way -- otherwise there would be a lot of abuse. Every second family would claim thousands in babysitting expenses, with no way for the government to verify.

[bugmenot]

It has to work this way -- otherwise there would be a lot of abuse. Every second family would claim thousands in babysitting expenses, with no way for the government to verify.

of course... however I could pay your son/daughter to babysit my baby and you could paid my son/daughter to babysit your baby

:cheesygri

[alanbrenton]

of course... however I could pay your son/daughter to babysit my baby and you could paid my son/daughter to babysit your baby

:cheesygri

At what age can one's child babysit another? It seems that age 11 is deemed appropriate according to the Red Cross and the Toronto Police:

http://www.redcross.ca/article.asp?id=000628&tid=021

http://www.torontopolice.on.ca/crimeprevention/babysitting.php

For about $350/month to look after an older child and $600 to care for 6 years old and younger, babysitting fees don't look too shabby. Best of all it's tax free up to earnings of $9,600 or so.

[alanbrenton]

Is there a cap on the hourly fee I can pay my younger cousins to babysit my daughter during the summer months? Or should it be more in line with Ontario's revised minimum wage requirements? Thanks.