Claim Your Childcare Expenses in Canada

This tax season, looking for different ways to maximize your deductions is normal. If you are raising kids in Canada, data shows that Canadian families spend around 293,000 CAD from birth to age 17 (around 17,235 CAD per year) for a two-parent, middle-income family with two kids. This is no small amount. Whether you are an immigrant family in Canada or not, your childcare expenses can save you money during tax season if you know where to look.

Understanding Childcare Expenses in Canada

Childcare expenses refer to the amount you or another person paid to have someone else look after an eligible child so you could earn income, go to school, or continue research under a grant. If eligible, you can claim certain childcare expenses as deductions on your personal income tax return.

Here are eligible expenses you can claim:

• Caregivers providing childcare services
• Day Nursery Schools and Daycare Centers
• Educational Institutions (for the part of the fees related to childcare services)
• Day camps and day sports schools (where the primary goal of the camp is to care for kids)

• Boarding schools, overnight sports schools, or camps where lodging is involved (please see the note in Part A of Form T778)

Ineligible expenses include:

• Medical or Hospital care cost
• Clothing costs
• Transportation costs
• Fees related to education costs at an educational institution (example: tuition fees of a regular program or a sports study program)
• Fees for leisure or recreational activities (example: tennis lessons, annual registration for Scouts)

• Reimbursed childcare expenses

Who Can Claim Childcare Expenses

Childcare expenses can only be claimed if your child is eligible. To be considered an eligible child, s/he should be:

• You or your spouse’s or common-law partner’s child
• S/he depended on you or your spouse or common-law partner, whose net income in 2024 was 15,705 CAD or less.

• S/he must have been under 16 years old at some time in the year. However, this age limit does not apply if the child had an impairment or mental function and was dependent on you or your spouse or common-law partner.

Who will claim the childcare expenses deduction will depend on your situation. Either you or the person you lived with may claim for the deduction. In some cases, both of you can claim part of the expense.

If you are the only person or parent supporting the child, you can claim the expenses you incurred while the eligible child stays with you.

If you lived with another person in 2024 and in the first 60 days of 2025, you must determine who among you can claim the deduction for your childcare costs. Note that the person who lived with you must have been one of the following:

• The eligible child’s parent
• Your spouse or common-law partner (if you are the eligible child’s father or mother)

• An individual claiming an amount for the eligible child

You must claim the childcare expenses if you have a lower net income (including zero net income). If the person you lived with has a higher net income, they are only eligible to claim the childcare expenses if you were:

• In any situation in Part C of Form T779

• Enrolled in an educational program in 2024 (Part D of Form T778)

What if your net income is the same? If this is the case, you need to decide among yourselves which one of you will claim the deduction.

If you got married or became a common-law partner in 2024, you and your spouse or common-law partner should consider your net income for the whole year and include childcare expenses you both paid for the entire year.

How to Claim Childcare Expenses on Your Tax Return

Here are the steps you need to do to claim your deduction:

Step 1: Compute your allowable deduction

Download and fill out Form T778, Child Care Expenses Deduction. This form is divided into four parts.

Part A is for determining your total childcare expenses. Part B calculates the basic limit for childcare expenses. Fill out Part C if you are the parent or common-law partner with the higher net income and any situations described in this part applicable in the tax year. Fill out Part D if you are enrolled in an educational program in the tax year.

Step 2: Claim the deduction on your income tax return

Enter the allowable deductible amount on line 21400 of your income tax return.

Step 3: Keep all supporting documents

The individual or organization that provided the childcare services should provide a receipt indicating the services performed. The receipt must show the individual's social insurance number.

Supporting documents include formal invoices from daycare providers, credit card receipts and bank statements as proof of payment, signed forms from caregivers, and other details about the care provider’s qualifications and license.

Taxes can be tricky, especially for immigrants in Canada. We hope that this article will help you claim your childcare expenses in Canada and meet the tax deadlines.

If you are looking for the best way to send money from Canada to your home country, RemitBee is the key! Our services are trusted, fast, and secure. We guarantee that you’ll get the best rates without paying high fees! Plus, you can send money for free when you remit over 500 CAD in one transaction. What are you waiting for?

Sign up now