Answers: Cheaper? That sort of depends what price she wants for the two option, doesn't it?
You do know that:
1) paying cash involves you contained by an illegal transaction, and
2) cheats ALL of us by allowing her to cheat on her taxes.
You desire what's morally correct and how much that's worth to you.
If the levy rate is 12% on a gallon of gasoline?
I see what you are getting it, and if we are speaking strictly only just about you and your tax situation, it is "cheaper" for you to claim the child support on the person near the lowest income's return (if you have a partner/spouse). CRA does not other match your supposition to the child care provider's income. If they ask you, you will own to provide the child care providers christen and SIN and cheques indicating what and how much you paid her for. Cash isn't the best bearing to go any way.
She should be reporting this income on her returm but it is up to her whether she reports it or not. There is no toll benefit to you if you decide to discharge her in lolly and claim it as a deduction or not.
Unless she is giving you a discount on her services for not reporting the assumption.
CRA doesn't make a point of going after small time rates evasion of this sort, so really it is up to your moral conscience as others have said.
If she's watching your child as a friendly choose and you're choosing to give her "dosh gifts" in return that's entirely your choice ;)
If you claim her reasonably remember you'll end up paying more for her E.I. and C.P.P. etc... If she really want the E.I. coverage later maybe it's worth it. Have a accurate talk and discuss your option.
Stimulus check. I received mine and I owe posterior taxes on which I am?
Whether it's cheaper is between you and your friend.
But if you pay her brass and she doesn't claim it on her tax return, she is dishonestly evading taxes, whether you claim the child care credit for the amount or not.
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