So I’ve got good news and bad news. Since you can’t tell me which news you want first (because I wrote this at some point in your past…just think about it), I’m going to decide for you…and my decision is…the good news!
Since my last blog post, I’ve become a Daddy for the 2nd time! Harry was born in October and he apparently looks exactly like me, so I make sure to apologize to him daily. Please send your congratulations in the form of babysitting vouchers that my wife and I can use at a day and time of our choosing.
Now the bad news. And yes, it does relate to Harry (and his oh-so-adorable big sister) which makes this segue that much more impressive. First of all though, the good news about the bad news is that it only affects you if you have kids in $7/day daycare…daycare that now costs $7.30/day. But that’s not actually the worst of the bad news, so here it is in all its horrible glory.
Depending on your family income, that same “$7.30/day” daycare could end up costing you a lot more. A WHOLE lot more. Worst of all, you won’t see it coming because you still only need to pay $7.30/day to the daycare itself. The rest will be charged to you on your tax return for 2015 (due in April 2016). There is no effect on this April’s taxes. Please note that if you make under $50,000 as a family, you will not pay more than $7.30/day. For everyone else, it goes a little something like this:
- If your family income is…between $50,000 and $76,000, you’re going to end up paying $8/day.
- If your family income is…between $76,000 and about $156,000, you’re going to end up paying around $1.50 more per day for every $10,000 you make over $76,000.
(For example, if your family income is $106,000, you’ll pay $8/day plus ($1.50 x 3) or $8+$4.50 = $12.50/day. If that confused you more than I wanted it to, please call me and I’ll explain everything you need to know)
- If your family income is…over $156,000, you’re going to end up paying $20/day
The scariest part of all is what I mentioned above – that you won’t have to pay a penny over $7.30/day until tax time comes in April 2016! At which time, you’ll be getting a very nice Easter/Passover/Spring surprise in the form of a very large tax bill that you weren’t expecting. For most people, it’ll be only be around $180 per child in $7.30/day daycare. But if you have 2 kids in $7.30/day daycare and you make over $156,000 as a family, that “surprise” is going to be a bill for around $6,660.
Surprise!
Have a nice day.
Sincerely,
The Funny Accountant
Don’t forget to follow me on Twitter if you like what you read! And as always, if you have tax questions, need advice on your personal taxes, corporate taxes or anything else accounting or business related, please contact The Funny Accountant/President of MK & Associates by phone at (514) 833-1158 or by e-mail at mitch@mkassociates.ca.
Also, for a witty and insightful read, check out the wifey’s blog. It’s funny and good.
The Funny Accountant 
Not funny, Mr. Funny Accountant.
LikeLiked by 1 person
I know….sorry. At least you can look at a cute picture of my kids…that should cheer some people up.
LikeLike
My son is in $7 a day daycare but “graduates” in September when he begins Kindergarten. Our family income is over 156k. How much will we have to pay?
LikeLiked by 1 person
Ballpark…about $275/month, so for January to end of August, assume around $2,200.
LikeLike
Thanks. Not haha funny at all 😦
LikeLike
I’d love $7/day daycare. We pay $1650/month for 2 kids and one is in half day kindergarten. We make maybe 100k/year and don’t qualify for any subsidy.
Granted the daycare is amazing and we have tried dayhomes and they have always disappointed..
LikeLike
Trust me that we know how lucky we are here in Quebec with regards to daycare. Even at $20/day, to have quality, subsidized daycare spots reasonably available is a nice perk…although we have to consider our high Provincial taxes in the big picture. Our low daycare rates were designed around a high Provincial tax…to raise the daycare rate now (putting aside for the moment HOW they’re raising the rate) essentially slaps a surtax on a very specific segment of society – families with kids between 6 months and 6 years old. Probably not the best political/economic move given that we represent the future of the Province. Just saying!
LikeLike
$20 a day sounds like a pretty sweet deal for a family making over $150,000. Plus you get to feel good knowing you’re subsidizing low income families and their daycare needs. Because the money has to come from somewhere, right? And if you’re paying $7 or $7.30, and making 150,000+, well, someone is subsidizing you. Ask someone in Ontario, paying $80/day or more, no matter what their income…
LikeLike
[…] be honest. I’ve never had quite the reader reaction to a blog post like I’ve had to last week’s post on daycare fee increases. Out of around 130,000 parents in Quebec with kids in $7/day daycare, […]
LikeLike
[…] (and only for us Quebecers with kids in $7.30/day daycare), don’t forget about that tax “surprise” coming in April 2016 if your family income is over $50,000 (which gets even more “surprising” […]
LikeLike
Sigh. I live in Vancouver and pay $935 a month for daycare for a 3 year old. Maybe we should move to Quebec so we could actually afford another child.
LikeLike
Don’t forget, if you own a house in Vancouver you can probably buy 3 houses here! (the same is probably true for apartment rentals…)
LikeLike
Hi, I am so confused about the daycare costs here. My husband doesn’t care, but I care so much since I am a full time mom. I would like to ask you if we pay the same no matter how much the daycare charges us? If the daycare charges us 35 dollars per day, and the family income is around 80,000. can you please give me some idea how much we will need to pay for it per day?
I am fine to pay more if I can help low-income families, but sometimes they don’t appreciate it, they think it is our responsibility to pay more tax.
Thank you.
Have a nice day.
Dawn
LikeLike
Hi Dawn, sorry about the delay in getting back to you. I’m currently finishing up a detailed post on the tax side of Quebec daycare. Stay tuned in the next couple of days!
LikeLike
[…] be getting more child benefits or less? Will your children be enjoying their winter in a warm, cozy no-longer-$7.30/day daycare environment while you freeze at home unable to pay your electrical bill because of those HUGE tax […]
LikeLike
The longer that I live in Quebec the less I like it. Actually, it’s the government that I don’t care for! On top of this situation there’s also the EI issue, language barriers and soooo much more. It’s a slap in the face to all Quebec residents.
Thanks for breaking it down for those of us that don’t care for the political jargon. I was seriously lost trying to read the Federal Budget for 2016, lol.
LikeLike