Child Tax, Forms & Schedules

T778 Tax Form: Child Care Expenses Deduction

Who uses the T778 tax form?

This form is designed for people claiming a child care expense deduction. This reduces your income and saves you tax at your marginal tax rate. Child care expenses represent a deduction and not a tax credit.

Who can claim child care costs?

In most cases, child care expenses are claimed by the parent with the lower net income. If the parents are separated and share custody, they can each claim the part of the child care costs that they paid. If a medical doctor certifies that the lower-income spouse cannot take care of the child, the spouse with the higher income can claim the expenses.

In what situations can I claim child care expenses?

You can claim child care expenses for a child under 16 at the beginning of the year, unless your child qualifies for the disability tax credit, in which case there is no age limit. The deduction is available to enable parents to earn employment income, run a business, take courses in an educational program for at least 3 consecutive weeks, or do research or work for which they have received a grant.

What kinds of expenses are covered?

You can get a family tax deduction for payments to day-care centres and day nursery schools, some individuals providing child care services, day camps and day sports schools, educational institutions such as private schools (the portion of tuition costs relating to child care services), boarding schools, and overnight sports schools and camps.

Please consult the form for more detailed information.

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