CHILD CARE EXPENSES

Line 21400 allows a deduction for child care expenses incurred so that a parent can work, run a business, go to school or do research. The claim is made on Form T778.

ELIGIBLE CHILD

A child of the taxpayer or of the spouse, or a child dependent on either of them whose net income is $16,452 or less (2026), who was under 16 at some time in the year or who had a physical or mental impairment.

ELIGIBLE EXPENSES

• Daycare centres, nursery schools and licensed home child care.

• Babysitters and nannies (the caregiver cannot be the child's parent, a person claiming the child as a dependant, or a related person under 18). Receipts should include the caregiver's social insurance number if an individual.

• Day camps and day sports schools whose primary purpose is child care.

• Boarding schools and overnight camps, subject to weekly limits.

• Not eligible: medical or hospital care, transportation, tuition for regular education, clothing, and fees for recreational activities that are not primarily child care.

ANNUAL LIMITS

• $8,000 per child under 7 at the end of the year.

• $5,000 per child aged 7 to 16.

• $11,000 per child eligible for the disability tax credit, at any age.

• Overall cap: two-thirds of the claimant's earned income.

• Weekly limits for boarding schools and overnight camps: $200, $125 or $275 per week, respectively.

WHO CLAIMS

Generally, the spouse or partner with the lower net income must claim, even if the other paid. The higher-income spouse can claim only for weeks when the lower-income spouse was in school, incapable of caring for children, in prison, or separated, and then only up to weekly limits.

ONTARIO CARE CREDIT

Ontario families with family income up to $150,000 can claim the refundable Ontario Child Care Access and Relief from Expenses (CARE) credit, which is calculated as a percentage of the child care expense deduction claimed, with the highest percentage for the lowest incomes.