Form T778 "Child Care Expenses Deduction" - Canada

What Is Form T778?

Form T778, Child Care Expenses Deduction, is used by parents to claim expenses incurred from child care on their taxes. The child care expenses tax deduction is intended to be used by single parents or in the case of married or common-law partnerships, the parent who is the lower earner, however, both parents of a child will not be able to submit the same claim.

Alternate Name:

  • Tax Form T778.

This form is issued by the Canadian Revenue Agency (CRA) and was last updated on January 1, 2019. A fillable T778 Form is available for download below. A large-print version of this document can be found through this link.

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How to Fill Out Form T778?

To complete Form T778, the Child Care Expenses Deduction, you will need to provide the following information:

  1. Information about your children and expenses related to child care:
    • The name of each child that qualifies for the deduction and their date of birth;
    • The total dollar amount of child care expenses per child and the name of the business or organization where the child attended child care;
    • If your child attended any boarding school or overnight outdoor program you can also include the number of weeks they stayed;
    • Use the "Note" section of this part to make sure you do not claim over the maximum deduction amount permitted for each child;
    • There is an additional line where you can input the number of expenses for a child age six or younger from the previous tax year.
  2. Expenses related to children born with a physical or mental impairment and the parent's earned income:
    • List the children who have a disability that you are a parent or guardian of to calculate additional deductions;
    • Add the total deduction amounts related to disabilities, below that you will list the total amount of deductions from the first section;
    • Enter the amount of income earned and multiply this number by two-thirds;
    • From this total, subtract the total deduction amount the parent with the higher income listed on Line 21400 of their tax return. This will then give you the total amount of your allowable deduction.
  3. If you find you are the parent with the higher income you will need to complete the next section that will have you input the total income amount earned by the parent with the lower income. This section will then calculate the total amount of deduction you are able to claim as the higher earner.
  4. The final section of Tax Form T778 asks if either parent had been enrolled in any educational program during the year to calculate deductions for education.
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Clear Data
Child Care Expenses Deduction for 2019
This information sheet will help you fill out Form T778. The terms
When the child care services are provided by an individual,
the individual cannot be one of the following:
child care expenses, eligible child, net income, and earned
income are defined on the next page.
• the eligible child's father or mother
Who can claim child care expenses?
• another person (as described under "Who can claim child care
If you are the only person supporting the eligible child, you can
expenses?")
claim child care expenses you incurred while the eligible child was
• a person for whom you or another person claimed an amount on
living with you. Fill out parts A and B, and, if it applies, Part D.
line 30400, 30425, 30450, or 30500 on your return or their return.
There may have been another person who lived with you at any time
• a person under 18 years of age who is related to you
in 2019 and at any time during the first 60 days of 2020 who was one
of the following:
A person is related to you if they are connected to you by a blood
relationship, marriage or common-law partnership, or adoption. For
the eligible child's parent
example, your brother, sister, brother-in-law, sister-in-law, and your or
your spouse or common-law partner, if you are the father or the
your spouse's or common-law partner's child are related to you.
mother of the eligible child
However, your niece, nephew, aunt, and uncle are not.
an individual claiming an amount for the eligible child on line
Supporting documents – The individual or organization who
30400, 30425, 30450, or 30500 of their return
received the payments must give you a receipt showing information
about the services provided. When the child care services are
In this situation, the person with the lower net income (including zero
provided by an individual, you will need the social insurance number
income) must fill out parts A and B and claim the child care expenses
of the individual. If you are filing online, keep all your documents in
unless one of the situations in Part C or in Part D applies.
case we ask to see them at a later date. If you are filing a paper
If any of the situations in Part C or in Part D apply, the child care
return, attach your completed Form T778, but do not send your other
expenses can be claimed by the person with the higher net income,
documents. Keep all your documents in case we ask to see them at a
or in part by both the person with the higher net income and the
later date.
person with the lower net income. In this situation, the person with the
Notes
higher net income must calculate the claim first. However, you must
If you paid an individual to provide child care in your home, you may
each fill out a separate Form T778, and fill out parts A and B, and, if it
have some responsibilities as an employer. If you are not sure of your
applies, parts C and D.
situation, contact us.
If both of you have equal net incomes, you have to agree on which
one of you will claim the child care expenses.
If Canada pension plan contributions and employment insurance
premiums have been paid for an individual to provide child care in
If you got married or became a common-law partner in 2019, you and
your home, the share that you have paid would also be considered to
your spouse or common-law partner have to consider your net
be child care expenses.
incomes for the whole year. Include child care expenses you both
paid for the whole year.
What payments you cannot claim?
What payments can you claim?
You cannot claim payments for any of the following:
You can claim child care expenses that were incurred for services
medical or hospital care, clothing, or transportation costs
provided in 2019. These include payments made to any of the
fees that relate to education costs at an educational institution,
following:
such as tuition fees of a regular program or a sports study
caregivers providing child care services
program
day nursery schools and daycare centres
fees for leisure or recreational activities, such as tennis lessons
educational institutions, for the part of the fees that relate to child
or the annual registration for Scouts
care services
You cannot claim expenses for which you or another person
day camps and day sports schools where the primary goal of the
(as described under "Who can claim child care expenses?") received,
camp is to care for children (an institution offering a sports study
or is entitled to receive, a reimbursement of the child care expenses
program is not a sports school)
or any other form of assistance not included in the income.
boarding schools, overnight sports schools, or camps where
For example, this includes the hiring credit for small business and
lodging is involved (read the note in Part A of Form T778)
small business job credit received under the Employment Insurance
If you were a resident of Quebec, you can also claim the basic
Act. If your employer paid the child care expenses on your behalf, you
contribution you paid directly to the subsidized childcare service
can claim the part of the expenses included in your income for the
provider. If applicable, also claim the additional contribution calculated
year.
on Revenu Québec’s Schedule I.
The above is not an exhaustive list of deductible child care expenses.
For more information, see Income Tax Folio S1-F3-C1, Child Care
Expense Deduction.
(Ce formulaire est disponible en français.)
T778 E (19)
Clear Data
Child Care Expenses Deduction for 2019
This information sheet will help you fill out Form T778. The terms
When the child care services are provided by an individual,
the individual cannot be one of the following:
child care expenses, eligible child, net income, and earned
income are defined on the next page.
• the eligible child's father or mother
Who can claim child care expenses?
• another person (as described under "Who can claim child care
If you are the only person supporting the eligible child, you can
expenses?")
claim child care expenses you incurred while the eligible child was
• a person for whom you or another person claimed an amount on
living with you. Fill out parts A and B, and, if it applies, Part D.
line 30400, 30425, 30450, or 30500 on your return or their return.
There may have been another person who lived with you at any time
• a person under 18 years of age who is related to you
in 2019 and at any time during the first 60 days of 2020 who was one
of the following:
A person is related to you if they are connected to you by a blood
relationship, marriage or common-law partnership, or adoption. For
the eligible child's parent
example, your brother, sister, brother-in-law, sister-in-law, and your or
your spouse or common-law partner, if you are the father or the
your spouse's or common-law partner's child are related to you.
mother of the eligible child
However, your niece, nephew, aunt, and uncle are not.
an individual claiming an amount for the eligible child on line
Supporting documents – The individual or organization who
30400, 30425, 30450, or 30500 of their return
received the payments must give you a receipt showing information
about the services provided. When the child care services are
In this situation, the person with the lower net income (including zero
provided by an individual, you will need the social insurance number
income) must fill out parts A and B and claim the child care expenses
of the individual. If you are filing online, keep all your documents in
unless one of the situations in Part C or in Part D applies.
case we ask to see them at a later date. If you are filing a paper
If any of the situations in Part C or in Part D apply, the child care
return, attach your completed Form T778, but do not send your other
expenses can be claimed by the person with the higher net income,
documents. Keep all your documents in case we ask to see them at a
or in part by both the person with the higher net income and the
later date.
person with the lower net income. In this situation, the person with the
Notes
higher net income must calculate the claim first. However, you must
If you paid an individual to provide child care in your home, you may
each fill out a separate Form T778, and fill out parts A and B, and, if it
have some responsibilities as an employer. If you are not sure of your
applies, parts C and D.
situation, contact us.
If both of you have equal net incomes, you have to agree on which
one of you will claim the child care expenses.
If Canada pension plan contributions and employment insurance
premiums have been paid for an individual to provide child care in
If you got married or became a common-law partner in 2019, you and
your home, the share that you have paid would also be considered to
your spouse or common-law partner have to consider your net
be child care expenses.
incomes for the whole year. Include child care expenses you both
paid for the whole year.
What payments you cannot claim?
What payments can you claim?
You cannot claim payments for any of the following:
You can claim child care expenses that were incurred for services
medical or hospital care, clothing, or transportation costs
provided in 2019. These include payments made to any of the
fees that relate to education costs at an educational institution,
following:
such as tuition fees of a regular program or a sports study
caregivers providing child care services
program
day nursery schools and daycare centres
fees for leisure or recreational activities, such as tennis lessons
educational institutions, for the part of the fees that relate to child
or the annual registration for Scouts
care services
You cannot claim expenses for which you or another person
day camps and day sports schools where the primary goal of the
(as described under "Who can claim child care expenses?") received,
camp is to care for children (an institution offering a sports study
or is entitled to receive, a reimbursement of the child care expenses
program is not a sports school)
or any other form of assistance not included in the income.
boarding schools, overnight sports schools, or camps where
For example, this includes the hiring credit for small business and
lodging is involved (read the note in Part A of Form T778)
small business job credit received under the Employment Insurance
If you were a resident of Quebec, you can also claim the basic
Act. If your employer paid the child care expenses on your behalf, you
contribution you paid directly to the subsidized childcare service
can claim the part of the expenses included in your income for the
provider. If applicable, also claim the additional contribution calculated
year.
on Revenu Québec’s Schedule I.
The above is not an exhaustive list of deductible child care expenses.
For more information, see Income Tax Folio S1-F3-C1, Child Care
Expense Deduction.
(Ce formulaire est disponible en français.)
T778 E (19)
Clear Data
Earned income
Other situations
When completing the return of a person who died in 2019, claim
Your earned income for line 6 in Part B of Form T778 is the total of all
eligible child care expenses that were paid while that person was
of the following:
living with the eligible child as if they were the only person supporting
• employment income (including tips and gratuities, and the non-
the child. However, if there was another person (as described under
taxable part of an allowance received as an emergency
"Who can claim child care expenses?"), that person is also considered
volunteer)
the only person supporting the child and can claim eligible child care
• net self-employment income, either alone or as an active partner
expenses paid while living with the child, as long as the expenses
(excluding losses)
were not claimed on the return of another person.
• the taxable portion of scholarships, bursaries, fellowships and
If you lived outside Canada for part or all of 2019, and we consider
similar awards, and net research grants
you to be a factual or deemed resident of Canada, you can claim
child care expenses that you paid to a non-resident person for
• any earnings supplement received under a project sponsored by
services provided outside Canada. We explain these terms under
the Government of Canada to encourage employment or
"Which income tax package should you use?" in the Federal Income
sponsored under Part II of the Employment Insurance Act or any
Tax and Benefit Guide. For information on other circumstances in
similar program
which you can claim child care expenses paid for services provided
• disability benefits received from the Canada Pension Plan or the
outside Canada (e.g., commuters to the United States), please
Quebec Pension Plan
contact us.
• amounts received under the Apprenticeship Incentive Grant
If you immigrated to or emigrated from Canada in 2019, you can
program and the Apprenticeship Completion Grant program,
claim child care expenses for the period you were in Canada, as long
administered by Employment and Social Development Canada
as you otherwise qualify.
Educational program
Definitions
The terms child care expenses, eligible child, net income, earned
An educational program has to be offered by a secondary school,
income, and educational program, used on Form T778, Child Care
college, university, or other designated educational institution.
Expenses Deduction for 2019, are defined here.
This includes any institution certified by Employment and Social
Child care expenses
Development Canada for courses that develop or improve
Child care expenses are amounts you or another person
occupational skills. An eligible program has to last at least 3
(as described under "Who can claim child care expenses?") paid to
consecutive weeks.
have someone look after an eligible child so that you or the other
person could do one of the following:
Full-time educational program requires students to spend at least 10
hours a week on courses or work in the program.
earn income from employment
carry on a business either alone or as an active partner
Part-time educational program requires students to spend at least 12
hours in a calendar month on courses in the program.
attend school under the conditions identified under "Educational
program"
For more information
carry on research or similar work, for which you or the other
What if you need help?
person received a grant
If you need more information after reading this publication, visit
The child must have lived with you or the other person when the
canada.ca/taxes or call 1-800-959-8281.
expense was incurred for the expense to qualify. Usually, you can
Teletypewriter (TTY) users
only deduct payments for services provided in Canada by a Canadian
resident. Read "Other situations" above for exceptions.
If you have a hearing or speech impairment and use a TTY, call
Eligible child
1-800-665-0354.
Child care expenses can only be claimed for an eligible child.
If you use an operator-assisted relay service, call our regular
An eligible child is one of the following:
telephone numbers instead of the TTY number.
your or your spouse's or common-law partner's child
a child who was dependent on you or your spouse or common-
law partner, and whose net income in 2019 was $12,069 or less.
The child must have been under 16 years of age at some time in the
year. However, the age limit does not apply if the child had an
impairment in physical or mental function and was dependent on you
or your spouse or common-law partner.
Net income
Your net income, and that of the other person, is used to determine
which person can claim child care expenses. This is the amount from
line 23600 of your returns. However, do not include amounts for
child care expenses (line 21400) and social benefits repayment
(line 23500).
Clear Data
Protected B
when completed
Child Care Expenses Deduction for 2019
Before you fill out this form, read the attached information sheet.
Part A – Total child care expenses
First and last name and date of birth of all your eligible children, even if you did not pay child
care expenses for all of them.
Year
Month Day
Child care expenses
First name of each
Name of the child care organization or name and social insurance
Number of weeks for
eligible child for
paid (read note below)
number of the individual who received the payments
boarding schools or
whom payments
overnight camps
were made
+
+
+
+
Total
=
67950
Note
The maximum you can claim for expenses that relate to a stay in a boarding school (other than education costs) or an overnight
camp (including an overnight sports school) is any of the following amounts:
$200 per week for a child included on line 1 in Part B
$275 per week for a child included on line 2
$125 per week for a child included on line 3
Enter the amount of expenses included above that were incurred in 2019 for a child who was 6 or
younger at the end of the year.
67954
Part B – Basic limit for child care expenses
Number of eligible children born in 2013 or later, for whom the disability
1
amount cannot be claimed
×
$8,000
=
Number of eligible children born in 2019 or earlier, for whom the disability
2
amount can be claimed
×
$11,000
=
+
*
67960
Number of eligible children born in 2003 to 2012, (and born in 2002 or
earlier, with an impairment in physical or mental function, for whom the
disability amount cannot be claimed)
3
×
=
+
$5,000
4
Add lines 1, 2, and 3.
=
5
Enter the amount from line 67950 in Part A.
2
×
=
6
Enter your earned income.
3
7
Enter the amount from line 4, 5, or 6, whichever is least.
If you are the person with the higher net income, go to Part C. Leave lines 8 and 9 blank.
Enter the amount that the other person with the higher net income deducted on line 21400 of his or
her 2019 return.
8
Line 7 minus line 8. If you attended school in 2019 and you are the only
person making a claim, also go to Part D. Otherwise, enter this amount
Allowable deduction
9
on line 21400 of your return.
=
Attach Form T2201, Disability Tax Credit Certificate. If this form has already been filed for the child, attach a note to your return
*
showing the name and social insurance number of the person who filed the form and the tax year for which it was filed.
T778 E (19)
(Ce formulaire est disponible en français.)
Clear Data
Protected B
when completed
Part C – Are you the person with the higher net income?
Fill out this part and tick the boxes that apply if, in 2019, another person with lower net income was in a situation described below.
Name of person with lower net income
Net income
Social insurance number
a) The other person attended school and was enrolled in a part-time educational program.
b) The other person attended school and was enrolled in a full-time educational program.
c) The other person was not capable of caring for children because of an impairment in physical or mental function. That
person 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. Attach a statement from the attending physician certifying this information.
d) The other person was 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. Attach a statement from the attending physician certifying this
information.
e) The other person was confined to a prison or similar institution for a period of at least two weeks.
f) You and your spouse or common-law partner were, due to a breakdown in your relationship, living separate and apart at
the end of 2019 and for a period of at least 90 days beginning in 2019, but you reconciled before
March 1, 2020.
10
Enter the amount from line 4 in Part B.
×
2.5%
=
Multiply the amount on line 10 by the number of months in 2019 that the situation in a) existed
11
(other than a month that includes a week that any of the situations in b) to f) existed).
Multiply the amount on line 10 by the number of weeks in 2019 that any of the situations in b) to f)
12
existed.
+
13
Add lines 11 and 12.
=
67980
Enter the amount from line 7 in Part B or line 13, whichever is less.
If you attended school in 2019, go to Part D.
14
Otherwise, enter this amount on line 21400 of your return.
Allowable deduction
Part D – Were you enrolled in an educational program in 2019?
Fill out this part if, at any time in 2019, either of the following situations applied to you:
You were the only person supporting the eligible child, line 7 equals line 6 in Part B, and you were enrolled in an
educational program.
You were the person with the higher net income, line 7 equals line 6 in Part B, and, at the same time in 2019, you and
another person were enrolled in an educational program. But first, fill out Part C.
Part D does not apply to the person with the lower net income, since the other person will claim this part of the deduction for
both of them.
15
Enter the amount from line 4 in Part B.
×
2.5%
=
Multiply the amount on line 15 by the number of weeks in 2019 during which you were enrolled in a
full-time educational program. If there was another person, they must also have been enrolled in a
16
full-time educational program during the same weeks.
Multiply the amount on line 15 by the number of months (other than any month that includes a week
used to calculate the amount on line 16) in 2019 during which one of the following applies:
there was no other person and you were enrolled in a part-time educational program
you and the other person were enrolled in a full-time or part-time educational program during
17
the same months
+
18
Add lines 16 and 17.
=
67990
19
Line 4 in Part B minus line 9 in Part B or line 14 in Part C, whichever applies to you
20
Line 5 in Part B minus line 9 in Part B or line 14 in Part C, whichever applies to you
Enter your net income
2
21
×
=
(not including amounts on lines 21400 and 23500).
3
22
If you filled out Part C: Line 13 in Part C minus line 6 in Part B
23
Enter the amount from line 18, 19, 20, 21, or (if it applies) 22, whichever is least.
24
Enter the amount from line 9 in Part B or the amount from line 14 in Part C, whichever applies to you.
+
25
Allowable deduction
Add lines 23 and 24. Enter this amount on line 21400 of your return.
=
See the privacy notice on your return.
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