Determine who can claim the deduction

Depending on your situation, either you or the person you lived with may claim the deduction for child care expenses. In some cases, both of you can claim part of the expense.

If you are the only person supporting the child

You can claim the expenses you incurred while the eligible child was living with you. You will need to fill out Form T778, Child Care Expenses Deduction for 2023, to calculate your deduction.

Which sections must be filled out on Form T778
  • Part A – Total child care expenses
  • Part B – Basic limit for child care expenses

If you were enrolled in an eligible educational program in 2023, you also need to fill out Part D.

If you lived with another person in 2023

If you lived with another person at any time in 2023 and in the first 60 days of 2024, you need to determine who can claim the deduction for child care expenses.

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 father or the mother of the eligible child)
  • an individual claiming an amount for the eligible child

Who can claim the deduction is based on your situation

If you are the person with the lower net income (including zero income), you must claim the child care expenses.

If the person you lived with has the higher net income, they can only claim the child care expenses if you were:

  • in any of the situations in Part C of Form T778
  • enrolled in an educational program in 2023 (Part D of Form T778)

In this situation, the person with the higher net income can claim the expense, or both of you can claim part of the expense.

The person with the higher net income must calculate their claim first. Each of you must fill out a separate Form T778. Fill out parts A and B of the form, and parts C and D, as applicable.

Example – Person with the higher net income claims the deduction

My husband will have to pay a lot of tax this year. Can he claim the day care expenses instead of me?

Generally, the person with the lower net income (including zero income) must claim the child care expenses.

However, if your spouse or common-law partner has the higher net income and one of the conditions below apply, he can make the claim for child care expenses at line 21400.

  1. You are enrolled in an educational program that is offered by a secondary school, college, university, or other designated educational institution. This includes any institution certified by the Minister of Employment and Social Development Canada for courses that develop or improve occupational skills. An eligible program has to last at least three consecutive weeks. A full-time educational program requires students to spend at least 10 hours a week on courses or work in the program. A part-time educational program requires students to spend at least 12 hours in a calendar month on courses in the program.
  2. You were not capable of caring for children because of an impairment in physical or mental function. You must have been confined for a period of at least two weeks to a bed or wheelchair, or as a patient in a hospital, or other similar institution. A statement from the attending physician certifying this information must be attached to your spouse's or common-law partner's claim.
  3. You were not capable of caring for children because of an impairment in physical or mental function, and this situation is likely to continue for an indefinite period. A statement from the attending physician certifying this information must be attached to your spouse's or common-law partner's claim.
  4. You were confined to a prison or similar institution for a period of at least two weeks.
  5. You were living separate and apart from your spouse or common-law partner at the end of the year and for a period of at least 90 days beginning in that year due to a breakdown of your relationship, but you reconciled before March 1 of the following year. However, such a claim is valid only if your spouse or common-law partner who had the higher income paid those child care expenses and the person with the lower income is a supporting person. For more information, see Income Tax Folio S1-F3-C1, Child Care Expense Deduction.

If your net incomes are the same

If both of you have equal net incomes, you have to agree on which one of you will claim the child care expenses.

If your martial status changed in 2023

If you got married or became a common-law partner in 2023, 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.

If you are completing a return for a person who died in 2023

When completing the return of a person who died in 2023, claim eligible child care expenses that were paid while that person was living with the eligible child, as if they were the only person supporting the child.

If there was another person, they are also considered the only person supporting the child. They can claim eligible child care expenses paid while living with the child, as long as the expenses were not claimed on anyone else's return.

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