Do you or your spouse qualify for the Child Care Tax Deduction?

If you are looking into the Child Care Tax Deduction claim you obviously are supporting a child or children and know how expensive it is. Fortunately, you may find financial relief on your tax return.

Tax Deductions are available to you if you are paying a babysitter or nanny or are looking a for a day care tax deduction. You may also be able to claim payments made to a boarding school, sports school or camp.

These claims are accessible as long as the parent(s) are working or in school part or full time.

Which parent claims the Child Care Deduction?

The supporting person with the lower net income will claim on their tax their tax return on line 214, using form T778 Child Care Expenses Deduction.

What is the cut off age for claiming a Child Care Deduction?

Dependant children under the age of 16 or children who are over 16 and physically or mentally infirm.

What qualifies my child as eligible?

• a child of the taxpayer, includes adoption
• a child of the taxpayer's spouse or common-law spouse
• a child who was dependent on the taxpayer or the taxpayer's spouse or common-law spouse

Claiming a Child Care Tax Deduction is simple, so get started today!

What payments can be claimed?

For the most part, the child must be cared for in Canada (deemed residents living abroad qualify as well).

• a babysitter providing child care services (an individual over the age of 18 and is unrelated to you). Provide individual's SIN number
• costs of a live in nanny, including any advertising, salary and benefits costs.
• a day nursery school or daycare centre
• a school – only the fees that relate to child care services
• a boarding school, overnight sports school or camp where accommodations are provided. OR 
• a day camp or a sports school where the primary goal is to care for the children not provide an education.

You cannot claim child care expenses if they have not been paid for or if you will be reimbursed. You also cannot claim transportation, medical, tuition or clothing under child care expenses.

More detailed information and forms on Child Care Deductions can be found on the CRA links below

T778 Child Care Expenses Deduction

Income Tax Folio - Child Care Expense Deduction

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