Child Tax, Families

Tax Tip: Are Child Care Expenses for Babysitters or Daycare Deductible?

Overview

Child care expenses, including babysitters and daycare, are tax deductible, but there are limitations on who can claim the expenses. For example, in a two-parent household, only the spouse or common-law partner with the lower net income can claim child care expenses. Under certain circumstances, the higher income partner may be able to claim these expenses, please click here for more information.

The person caring for your child must not be a dependant, or a close family relative, as mentioned here. The individual must be over the age of 18. Nieces and nephews are not considered blood relatives.

You can claim child care expenses using form T778.

Please make sure you keep all receipts in case the CRA requests them later.

Further Resources information from the CRA:

Please refer to this link for more on childcare expenses.

Family, child care, and caregivers deductions and credits