The CRA normally requires childcare expenses to be claimed by the spouse with the lower net income. However, the spouse with the higher net income can claim the expenses if the spouse with the lower net income met one or more of the CRA’s exceptions during the tax year.
Unless you indicate that the lower income spouse met one or more of the CRA’s exceptions, TurboTax automatically claims childcare expenses on the return of the spouse with the lower net income. If you haven’t entered your spouse’s income yet, TurboTax assumes your spouse’s income is zero and transfers childcare expenses to them.
Some other reasons that your childcare expenses might not be calculating are:
- Your balance owing is zero. Since childcare expenses are non-refundable, if your balance owing is zero, the expenses will not result in a refund.
- Your income is zero. The amount you can claim for childcare expenses is capped at two thirds of your earned income or the income cap for the child’s age/situation.
When you enter your dependant information, make sure you correctly enter:
- your child’s date of birth according to the format shown on your screen; and
- your child’s relation to you (indicate son/daughter, not father/mother).