Problem: Jen and Lou are married and they have two children, aged 6 and 9. They pay Sue a 35 year old neighbour $ 500 per week to take care of their children for 44 weeks each year. Lou works full time and earns a salary (employment) of $140,000 per year. Jen works part - time, employment earning (a salary) of $28,000 per year. She also attends a designated educational institution George Brown College during the fall semester, for a total of 15 weeks in a program greater than 10 hours per week.
Which of the following is correct with respect to Lou's and Jen's ability to claim a deduction for child care expenses? (Hint: When can higher income claim?)
a) Jen can claim child care expenses of $8,125 and Lou can claim the remaining $ 4,875.
b) Neither Jen nor Lou can claim child care expenses because they paid a neighbour to take care of their children.
c) Jen must claim all of the child care expenses because she is the supporting person with the lower Net Income.
d) Lou can claim child care expenses of $16,000.