The CRA normally requires child care expenses to be claimed by the spouse or common-law partner with the lower net income. But, the spouse or common-law partner with the higher net income can claim the expenses if one or more of the following conditions are met during the tax year:
- The supporting person with the lower net income attended school part-time or full-time.
- The supporting person with the lower net income was incapable of caring for children because of a mental or physical infirmity.
- The supporting person with the lower net income was in prison for at least two weeks.
- You were separated from your spouse or common-law partner for at least 90 days due to a breakdown in your relationship.
To claim child care expenses on the return of the spouse with the higher net income, select your edition of TurboTax, then follow the instructions.
Instructions for TurboTax Online
If you’re preparing your returns together, enter your spouse’s information in the Introduction/Profile section of the interview. If you’re preparing your returns separately, enter your spouse’s information in the Introduction section of the interview, at [Name], info about your spouse or partner.
- Under Dependants information in the Introduction section of the interview, answer Yes to the question Do you have children or financially support another person?, enter your dependants, then select Continue.
- Select Yes when asked Did you pay for someone to look after your child so you could earn income, go to school, or conduct research in 20XX?, then select Continue.
- Open the Deductions menu and select Child Care Expenses, then Child Care Expenses Intro. Select Yes when asked if you paid for day care or for someone to look after your child, then select Continue.
Note:
- If you’re preparing your returns together, select whether the spouse with the higher net income is eligible to claim child care expenses. Then, select the spouse with the higher net income.
- If you’re preparing separate returns, select whether you have the higher net income, then follow the prompts on the screen to enter the rest of the information.
Instructions for TurboTax Download
EasyStep interview:
- If you’re preparing your returns together, enter your spouse’s information in the Introduction and Profile sections of the interview.
- If you’re preparing your returns separately, enter your spouse’s information in the Introduction section of the interview, at [Name], info about your spouse or partner.
- Select Dependants under the Introduction menu, and follow the prompts.
- Select Yes at Did you pay for someone to look after your child so you could earn income, go to school, or conduct research?, then select Continue.
- Open the Deductions & Credits section of the interview and select Child care profile.
Note:
- If you're preparing your returns together, select whether the spouse with the higher net income is eligible to claim the child care expenses.
- If you're preparing separate returns, select whether you are the spouse with the higher net income, then follow the prompts on the screen.
Forms method:
- If you’re preparing your returns together, select the Forms or T-Slips button next to your spouse’s name. Then, select your spouse’s income form or slip (for example, T4) and enter their income information.
- If you’re preparing separate returns, enter your spouse’s income information on your T1 General, under the section, Information about your spouse or common-law partner.
- Each spouse must complete and file a Form T778.
- If you’re preparing your returns together, select the Forms button next to your name. Then, select Form Lookup.
- Type T778 into the search field and select T778 from the options that appear. Enter your information. Repeat this step for your spouse.
- If you’re preparing your returns separately, open the Forms menu and type t778 into the search field
- Select T778 from the options that appear.
- Enter your information into the form, as required. If you’re the higher income spouse, complete Part C.
Note: The spouse with the higher net income must complete part C. If any exceptions applied, the child care expenses will be claimed on the return of the spouse with the higher net income.
