Does the lower-income spouse have 'earned income' on their return?
In Canada, child care expenses are meant to offset the costs of going to work or school. If the lower-income spouse has $0 in "earned income" (meaning no T4 employment income, no net self-employment income, and no research grants), TurboTax will often nullify the claim because the CRA assumes that if one parent isn't working or studying, they are available to care for the child.
Check Line 23600 (Net Income) for both of you. If Spouse A makes $70k and Spouse B makes $40k, the deduction must appear on Spouse B’s return. Is it there?
Note that investment income (interest and capital gains) and EI benefits do not count as "earned income" for the child care deduction. If the lower-earner only has investment income, TurboTax will correctly show a $0 deduction.
In the "Personal Information" or "Dependents" section, did you ensure the children are linked to the family unit and not just to one parent?
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