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New Member
posted Dec 5, 2019 1:01:37 PM

My wife was contacted by CRA about documentation for her previous childcare claim. Our daycare provider has now ghosted us and we're left owing $2500. What can we do?

We paid via email money transfer, so I have record of every dollar she was sent. But we don't have any additional documentation of things. She ran a home based daycare, but since took another job and moved(we don't know to where). So we're left holding the bag here even though we can prove that we sent the money directly to her by name, weekly for a year and a half.

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1 Replies
Level 15
Jan 23, 2020 4:09:12 PM

If you have been reassessed and now owe money to CRA because you did not (or could not) submit the required documentation for your childcare expenses, you'll need to contact CRA directly and explain your situation. You may still have a contact number on the review letter you received that originally asked for the documentation, if not you can call General Enquiries: 1-800-959-8281.

 

As the CRA  does require a receipt that shows the provider's SIN or Registration Number (in the case of licensed daycares) to back up this expense claim, it's likely you will not be successful in reinstating the expense claim.  However, if you speak with them, explain the situation and are able to provide some proof of payment and a SIN number, they may consider it. 

 

This information comes from the CRA Income Tax Folio about Child Care Expense Deductions:

Form T778 and receipts

1.47A claim for child care expenses is made by filing a completed Form T778with the claimant’s return. Receipts for child care expenses are not required to be sent with the claimant's return. When the claimant's return is filed electronically the requirement to fileForm T778is also waived. However, these documents should nevertheless be retained as the CRA has the authority undersubsection 220(2.1)to subsequently request them as proof of the claims being made or in support of the information being reported. Every receipt for child care expenses should be made out to the individual who paid the child care expenses. When the child care services are provided by an individual resident in Canada, the receipt must show the caregiver's social insurance number.