Question
Both Mr. Johnstone and Mrs. Johnstone are employed. During 2019, Mr. Johnstone had opened a restaurant and had business income of $10,000. Mr. Johnstone also
Both Mr. Johnstone and Mrs. Johnstone are employed. During 2019, Mr. Johnstone had opened a restaurant and had business income of $10,000. Mr. Johnstone also had net employment income of $50,000, after deducting $10,000 of employment deductions. He also had $7,000 of interest income. Ms. Johnstone had gross employment income of $80,000. She also had $6,000 of dividend income. Since they both had to work long hours, they had to pay for care of their children. They have four children: Clarence (15 years old and eligible for the disability tax credit), Ida (10 years old), Gary (5 years old), and Pearson (2 years old). Payments for childcare during the year amounted to $500 per week for 52 weeks of the year. Additionally, they sent Clarence and Ida to overnight summer camp for 3 weeks each, and paid $6,000 total for this camp. Also during the current year, there was a period of twelve weeks during which Mr. Johnstone was hospitalized due to injuries suffered during a hockey game.
Required: Determine the maximum amount that can be deducted by Mr. and Mrs. Johnstone for the year ending December 31, 2019 for child care expenses
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