Self-employed

The amount of control a parent has over your work determines whether or not you are a self-employed individual and whether or not you can deduct daycare expenses from your daycare income.

Generally, you are a self-employed individual if you control:

• the number of hours you work;
• the premises and materials you use; and
• the way you perform your daycare duties.

You can claim daycare expenses on your income tax return if you report self-employment income.

Generally, you are an employee if the parent:

• specifies the work to be done;
• specifies the working hours; and
• supervises your work.

As an employee, you cannot deduct daycare expenses.

If you are not sure about your situation, see Guide RC4110, Employee or Self-employed?

If you care for children part-time or occasionally, you cannot deduct business expenses. You will report your earnings as "Other employment income" on line 104 of your income tax return.

Forms and publications

• Guide RC4110, Employee or Self-employed?
• Booklet P134, Using Your Home for Daycare