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What Are Child Care Expenses?

Child care expenses are costs incurred for the care of a child so that you or your spouse/common-law partner can work, run a business, attend school, or conduct research. These expenses can be deducted on your income tax return, reducing the amount of income tax you owe.

Eligible Expenses

You can claim the following expenses as child care costs:

  1. Daycare or Childcare Centre Fees: Licensed or unlicensed.
  2. Nanny or Babysitter Fees: Paid to an individual for in-home care.
  3. Day Camps or Overnight Camps:
    • Day Camps: For sports, arts, or other activities.
    • Overnight Camps: Eligible up to a weekly maximum (see limits below).
  4. Boarding School or Specialized Schools: For children with disabilities or special needs.

Who Can Claim the Expenses?

  • The lower-income spouse or partner must usually claim child care expenses unless the higher-income spouse is unable to because they:
    • Are attending school.
    • Are confined to a bed or wheelchair.
    • Have a mental or physical impairment.

Eligible Children

Child care expenses can be claimed for:

  1. Children under 16 years of age at any time during the year.
  2. Children of any age if they have a physical or mental disability and depend on you.

Maximum Claim Amounts

The maximum deductible amount depends on the child’s age and needs. For 2025, the annual limits are:

  • Children under 7 years old: $8,000 per child.
  • Children aged 7–16: $5,000 per child.
  • Children with disabilities: $11,000 per child, regardless of age.

Camps and Boarding Schools:

  • Day Camps: Limited to $8,000 or $5,000 annually based on the child’s age.
  • Overnight Camps: Deductible weekly maximum:
    • $200 per week for children under 7.
    • $125 per week for children aged 7–16.
    • $275 per week for children with disabilities.

How to Claim Child Care Expenses

  1. Gather Supporting Documents:
    • Receipts with the caregiver’s name, address, Social Insurance Number (SIN) or business number, and the total amount paid.
  2. Complete the Tax Form:
    • Use Form T778: Child Care Expenses Deduction to calculate the amount you can claim.
    • Transfer the result to Line 21400 of your income tax return.
  3. File Electronically or by Mail:
    • Include Form T778 and supporting receipts when requested by the CRA.

Ineligible Expenses

You cannot claim:

  • Fees for private school tuition.
  • Payments to someone under 18 years old related to you (e.g., your child, sibling, or grandchild).
  • Costs reimbursed by another program or employer.
  • Expenses not directly related to child care (e.g., uniforms, supplies, or meals).

Frequently Asked Questions

Q: Can I split child care expenses with my spouse?
A: No, only the lower-income spouse can claim the expenses unless exceptions apply (e.g., school, illness).

Q: What if I have more expenses than the maximum limit?
A: You can only deduct up to the annual maximum limits for each child. Additional costs cannot be carried forward.

Q: Can I claim child care expenses for extracurricular activities?
A: Only if the activity is part of a qualifying child care arrangement, such as day camps.

Tips for Maximizing Child Care Expense Claims

  1. Organize Receipts: Keep detailed records to support your claim during tax filing or a CRA review.
  2. Plan for the Deduction Limit: Understand annual caps and prioritize expenses that provide the greatest benefit.
  3. Claim Special Needs Costs: Ensure you claim the higher allowable limit for children with disabilities.

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