Tax implications for parents staying at home during the Alberta teachers' strike

As teachers across the province have begun to strike, many families are trying to figure out how to juggle work and childcare from home, and as a result, want to know more about the potential tax implications.

In this article, we hope to provide some clarity on tax questions from parents suddenly faced with staying at or working from home.

Am I considered to be “Working From Home” now?
Will the $30-per-day payment affect my taxes?
What can I claim on my taxes?
Quick tax tips for parents during the strike

Am I considered to be “Working From Home” now?

Do you normally work from an office outside of your house but have to stay home now to watch your children during the strike and do your work?

While it might seem like you're working from home, to qualify for CRA’s home-office deduction, you have to meet the following conditions:

• You regularly (more than 50% of the time for a period of at least 4 consecutive weeks) perform work duties from your home workspace, AND
  
• Your employer required you to do so, typically documented in writing or policy

It's also worth noting here that claiming a home office deduction requires employer certification on a Form T2200 – Declaration of Conditions of Employment. This form confirms that you must maintain a workspace at home and that you aren’t being reimbursed for those expenses. Without that form, the CRA won’t let you claim those expenses.

EXAMPLE If the strike continues on to at least November 6, and you work from home for at least 50% of that time, and you did so because your employer required you to do so and that was documented in writing, then you will be considered to have been working from home.

If you’re simply home because schools are closed and you’re having to care for a child, it’s unlikely to meet CRA’s definition.

Will the $30-per-day payment affect my taxes?

The Alberta government announced a parent payment program that will give parents $30 per child for each day of the strike.

Eligible parents or guardians with children 12 and under in affected schools can apply through the provincial website once the parent portal opens (expected to be October 14, 2025).

Possible Tax Considerations

Payment Classification The Alberta government has stated that the payment will be considered a benefit, and as such, will not be considered taxable income.

No Tax Withholding Payments will likely arrive via e-transfer without deductions, but since the payment is not taxable, you should not owe any additional amount at tax time.

Benefit Clawbacks Because the payment is not considered income, income-tested benefits (such as the Canada Child Benefit or the GST/HST credit) will not be affected by receiving this payment.

Child Care Deduction Interaction The $30-per-day payment doesn’t cancel child care expense claims, but each is reported separately.

*It’s important to note that this support is intended as temporary relief for added childcare costs, not income reimbursement.

What can I claim on my taxes?

While this event affects day-to-day life, it doesn’t automatically open new tax deductions. Here’s what may, or may not, apply:

Child Care Expense Deduction ❌ Unlikely
This deduction only applies when you pay someone else to care for your child so that you can earn income, attend school, or run a business. If you’re the one staying home, those hours don’t qualify as deductible child care expenses.

Work-from-Home Deduction ⚠️ Possibly Limited
As talked about above, you can only claim this if your employer requires you to work from home and you meet the CRA’s eligibility tests. Simply staying home to care for your child because schools are closed won’t usually qualify. However, if your employer formalizes your work-from-home arrangement during this time, limited claims may apply.

$30-Per-Day Government Payment 💰 Not Taxable
The Alberta government has confirmed that the payment will be treated as a non-taxable benefit. This means you will not receive a T4A slip, and the payment does not need to be reported as income on your 2025 tax return.

Quick tax tips for parents during the strike

• Track expenses Keep records of strike days, lost income, and any extra costs even if you don't think you'll need it, because you never know.
  
• Check your official employment policy Some employers offer flexible arrangements during closures, and if you can't find it or have questions, reach out to your HR representative and ask.
  
• Confirm payment eligibility early Remember, only one parent or guardian can claim per child.
  
• Track the payments for your own finances The $30-per-day payment is non-taxable, so it won’t affect your taxes or benefits, but it still might be worth tracking for your own records.

Questions?

If you have any questions about this article, need help with potential tax implications resulting from being at home, or just want to know more about the services we offer, please contact one of our Tax Experts or complete the contact form below.