What is a "dependent child"? 🤔
A child is considered "dependent" when they're officially part of your family for tax purposes. Simply put: the government recognizes that you're financially responsible for this child.
Why is this important? 🌟
Tax benefit: If you have a dependent child, you get a larger portion of your income that's tax-free. We call this the "tax-free allowance".
More in your pocket: Because your tax-free allowance is larger, you're taxed on a smaller amount. The result? You pay less taxes! 💸
Right to reimbursement: Only if the child is officially dependent can you use the benefit for childcare cost reimbursement through Payflip.
What about co-parenting? 🤝
⚠️ Note: A child is normally considered dependent on both parents. There's one exception:
If the parents are separated and only one parent has claimed the child as dependent on their tax return.
What if my child isn't a dependent? 🚫
Unfortunately, if your child isn't officially dependent, you can't use this specific benefit in Payflip. But don't worry! There are surely other benefits you can take advantage of. Feel free to take a look at your Payflip account for all the possibilities. 😉
Any questions? 💬
Still have questions about "dependent children" or childcare cost reimbursement? Don't hesitate to contact us via the chat function. We're happy to help!