Child Care Expense: Check your Earned Income amount

Child Care Expense CRA rules:

The lower income earner has to claim the child care expenses. These expenses are allowed to a maximum of 2/3rds of earned income (rental, business, salary, bonuses). Dividends are not earned income so these payments are not included. The lower income earner should consider drawing a salary, if possible, to allow for the deduction of the incurred Child Care expenses. In other words, 1.5 multiplied by the annual child care expenses incurred would be the minimum income amount desired in order to fully claim this expense.