Child Care Expenses

You may be able to deduct your childcare expenses if they were incurred to enable you or a supporting person to earn employment or business income, attend secondary or post-secondary school, or engage in grant research. Attendance at a secondary or post-secondary school means attendance of at least one course that is at least three weeks long, for 10 hours per week (full time program) or 12 hours per month (part time program).

A supporting person includes your spouse, the parent of the child, or the person who claimed the child as a dependant.  The supporting person must have lived with you at any time in the taxation year as well as at any time in the first 60 days of the following taxation year. An eligible child is defined as a child of the taxpayer or the taxpayer's spouse, or a child dependent on the taxpayer or the taxpayer's spouse and whose income for the year does not exceed the basic personal amount for the year. The child has to be under 16 years of age at some time in the year. However, the age limit does not apply if, during the year, the child is dependent on the taxpayer or the taxpayer's spouse and has a mental or physical infirmity.

The maximum deduction is $10,000 for each child qualifying for the disability tax credit, $7,000 for each other child under seven, and $4,000 for each other child under 16, but the maximum total deduction may not exceed two-thirds of your earned income. The deduction can be claimed only by the lower income person unless the lower income spouse attends secondary or post secondary school, is mentally or physically infirm, or for a period of at least two weeks was in a prison, hospital, or asylum.

Childcare expenses can include day care, nursery school, day sports camp, lodging at a boarding school or camp, and certain babysitters.