Child Care Expenses Deduction for 2019
This information sheet will help you fill out Form T778. The terms
child care expenses, eligible child, net income, and earned
income are defined on the next page.
Who can claim child care expenses?
If you are the only person supporting the eligible child, you can
claim child care expenses you incurred while the eligible child was
living with you. Fill out parts A and B, and, if it applies, Part D.
There may have been another person who lived with you at any time
in 2019 and at any time during the first 60 days of 2020 who was one
of the following:
•
the eligible child's parent
•
your spouse or common-law partner, if you are the father or the
mother of the eligible child
•
an individual claiming an amount for the eligible child on line
30400, 30425, 30450, or 30500 of their return
In this situation, the person with the lower net income (including zero
income) must fill out parts A and B and claim the child care expenses
unless one of the situations in Part C or in Part D applies.
If any of the situations in Part C or in Part D apply, the child care
expenses can be claimed by the person with the higher net income,
or in part by both the person with the higher net income and the
person with the lower net income. In this situation, the person with the
higher net income must calculate the claim first. However, you must
each fill out a separate Form T778, and fill out parts A and B, and, if it
applies, parts C and D.
If both of you have equal net incomes, you have to agree on which
one of you will claim the child care expenses.
If you got married or became a common-law partner in 2019, you and
your spouse or common-law partner have to consider your net
incomes for the whole year. Include child care expenses you both
paid for the whole year.
What payments can you claim?
You can claim child care expenses that were incurred for services
provided in 2019. These include payments made to any of the
following:
•
caregivers providing child care services
•
day nursery schools and daycare centres
•
educational institutions, for the part of the fees that relate to child
care services
•
day camps and day sports schools where the primary goal of the
camp is to care for children (an institution offering a sports study
program is not a sports school)
•
boarding schools, overnight sports schools, or camps where
lodging is involved (read the note in Part A of Form T778)
If you were a resident of Quebec, you can also claim the basic
contribution you paid directly to the subsidized childcare service
provider. If applicable, also claim the additional contribution calculated
on Revenu Québec’s Schedule I.
The above is not an exhaustive list of deductible child care expenses.
For more information, see Income Tax Folio S1-F3-C1, Child Care
Expense Deduction.
When the child care services are provided by an individual,
the individual cannot be one of the following:
• the eligible child's father or mother
•
another person (as described under "Who can claim child care
expenses?")
•
a person for whom you or another person claimed an amount on
line 30400, 30425, 30450, or 30500 on your return or their return.
• a person under 18 years of age who is related to you
A person is related to you if they are connected to you by a blood
relationship, marriage or common-law partnership, or adoption. For
example, your brother, sister, brother-in-law, sister-in-law, and your or
your spouse's or common-law partner's child are related to you.
However, your niece, nephew, aunt, and uncle are not.
Supporting documents – The individual or organization who
received the payments must give you a receipt showing information
about the services provided. When the child care services are
provided by an individual, you will need the social insurance number
of the individual. If you are filing online, keep all your documents in
case we ask to see them at a later date. If you are filing a paper
return, attach your completed Form T778, but do not send your other
documents. Keep all your documents in case we ask to see them at a
later date.
Notes
If you paid an individual to provide child care in your home, you may
have some responsibilities as an employer. If you are not sure of your
situation, contact us.
If Canada pension plan contributions and employment insurance
premiums have been paid for an individual to provide child care in
your home, the share that you have paid would also be considered to
be child care expenses.
What payments you cannot claim?
You cannot claim payments for any of the following:
•
medical or hospital care, clothing, or transportation costs
•
fees that relate to education costs at an educational institution,
such as tuition fees of a regular program or a sports study
program
•
fees for leisure or recreational activities, such as tennis lessons
or the annual registration for Scouts
You cannot claim expenses for which you or another person
(as described under "Who can claim child care expenses?") received,
or is entitled to receive, a reimbursement of the child care expenses
or any other form of assistance not included in the income.
For example, this includes the hiring credit for small business and
small business job credit received under the Employment Insurance
Act. If your employer paid the child care expenses on your behalf, you
can claim the part of the expenses included in your income for the
year.
T778 E (19)
(Ce formulaire est disponible en français.)
