Subsidy and Taxable Benefits

Subsidy Information

Eligible stay-at-home parents may qualify for  a new subsidy of up to $100 per month, for each preschool age child who is participating in an approved early childhood development program.  This means that most of your monthly fees could be reimbursed on a monthly basis if you qualify for this subsidy!

Approved early childhood development programs refer to community-based services, including licensed nursery schools that provide opportunities for pre-school children – either on their own, or with a parent – to participate in activities that promote healthy child development.

A Parent Information Line has been established to provide Albertans with toll-free access to early childhood development and child care information and resources.  Toll-free: 1-866-714-KIDS (5437) |  Edmonton and area: 644-1366

NOTE: The allowable combined family income for this subsidy is different depending on number of children in the household & other factors, don’t automatically assume you can’t qualify. Our best advice is to apply – the worst that can happen is that your application is turned down. (see the Estimator Tool )  (you will be taken off our site – hit the Back button to return here)

Approved Programs:

  • Programs that promote parent and child literacy (e.g., Books for Babies)
  • Play-based early childhood programs  (e.g., licensed nursery schools and moms and tots programs)
  • Educational programs that help parents meet their child’s learning and developmental needs (e.g., Positive Parenting, Nobody’s Perfect)
  • Community-based recreational programs (e.g., Swim and Learn, Baby Steps)
  • Drop-in centres

Ineligible programs:

  • Day care centres
  • Child care where parents remain on site (e.g., bingo halls, exercise facilities, etc)
  • Services that currently provide cost-free programs (e.g., Parent Link Centres)

Eligibility:

  • at least one parent stays at home to care for preschool age children and does not work or go to school for more than 20 hours per week;
  • the family’s combined gross monthly income and family structure qualify (see the Estimator Tool )  (you will be taken off our site – hit the Back button to return here)
  • children are of preschool age (six years and under) and not yet attending Grade 1;
  • the preschool children are registered in an approved early childhood development program; and
  • funding is not being  provided through the child care subsidy or kin child care funding programs.

WEPS Payment Process:

  1. A parent must apply and qualify for the Stay-at-Home Subsidy Program.  Subsidy application forms are available online or by calling the Child and Family Services Authority  Child Care Subsidy Office.
  2. Parents provides all payments to WEPS as per the typical process.
  3. Once WEPS recieves the subsidy reimbursement from the Government, you are issued a check reimbursing you for the subsidy amount.

Tax Benefit- Child Care Expense Deduction

You can claim payments for child care expenses made to:

  • caregivers providing child care services;
  • day nursery schools and daycare centres;
  • educational institutions, for the part of the fees that relate to child care services;
  • day camps and day sports schools where the primary goal of the camp is to care for children (an institution offering a sports study program is not a sports school); or
  • boarding schools, overnight sports schools, or camps where lodging is involved.

Talk to a tax professional or visit the CRA website for further details!

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