  Child care expenses (T778) |
The keyword Child-Care opens the child care group. It is essential that child care data be entered in the database file of the child who received the care. This will enable DT Max to grant the child care deduction to the lower earner, as is required for federal tax purposes, and to optimize this credit on the Quebec income tax return.
Who can claim child care expenses?
If you are the only person supporting the child, you can claim child care expenses you incurred while the eligible child was living with you.
However, there may have been another person who lived with you at any time in 2023 and at any time during the first 60 days of 2024 who was: - the eligible child's parent;
- your spouse or common-law partner, if you are the father or the mother of the child; or
- an individual claiming an amount for the eligible child on line 30425, 30400, 30450, or 30500 of their return.
If there is another person, and one of the situations in Part C or in Part D applies, the child care expenses can be claimed by the person with the higher net income, or in part by both the person with the higher net income and the person with the lower net income. Use the keyword Child-Weeks if any such situation exists. The keyword Child-Weeks must be entered in the "Data Entry" tab for the taxpayer with the higher net income to ensure a proper calculation of the applicable child care expenses.
If the "Family head" and the "Spouse of the family head" have equal net incomes, both taxpayers have to agree on who will claim the expenses. If they got married or began living common-law in 2023, the family head and his/her spouse or common-law partner will have to consider their net incomes for the whole year. Include child-care expenses that they both paid for the whole year.
If there is another person, the person with the lower net income (including zero income) must claim the child care expenses unless one of the situations in Part C or in Part D of schedule T778 applies.
If there is another person, and one of the situations in Part C or in Part D applies, the child care expenses can be claimed by the person with the higher net income, or in part by both the person with the higher net income and the person with the lower net income. Use Child-Weeks in any such situation, the person with the higher net income must calculate the claim first.
If there is another person and you have equal net incomes, you have to agree on which one of you will claim the expenses. If you got married or began living common-law in 2023, you and your spouse or common-law partner have to consider your net incomes for the whole year. Include child care expenses you both paid for the whole year.
When completing the return of a person who died in 2023, you may claim eligible child care expenses that were paid while that person was living with the child as if he or she was the only person supporting the child. However, if there was another person, that person is also considered the only person supporting the eligible child and can claim eligible child care expenses paid while living with the child, as long as the expenses were not claimed on the return of another person. Use Child-Weeks if you want the person with the higher net income to claim the child care expenses.
All child care services, whether they offer places for $7.55 or not, must obtain a permit from the ministère de la Famille et des Aînés or a recognition from a coordinating office for home day care services if caring for more than six children. Thus, a home day care agency caring for more than six children without a permit or recognition operates illegally (1).
(1) This does not apply to the exclusions provided for in Article 2 of the Act respecting educational childcare services to children.
The following options are applicable for the keyword Child-Care.
Daycare
Camp
Boarding school
Babysitter
 See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
 See the CRA's general income tax guide:
Line 21400 - Child care expenses
Amount paid for child care expenses as per receipts.
See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
See the CRA's general income tax guide:
Line 21400 - Child care expenses
Use the keyword Amount-Que.cc to enter the amount of child care expenses paid as per RL-24 box E. If you have no Relevé 24, the daycare provider should have given a receipt that indicate the amount eligible for Quebec.
See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
See the CRA's general income tax guide:
Line 21400 - Child care expenses
The number of weeks spent at a boarding schools or overnight camps. DT Max will limit the weekly amounts at camp or boarding school to the permissible amounts.
The maximum that can be 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 $175 per week for a child born in 2017 or later for whom the disability amount cannot be claimed, $275 per week for a child born in 2023 and earlier for whom the disability amount can be claimed, and $125 per week for a child born in 2007 to 2016 (or born in 2006 and earlier with a mental or physical infirmity for whom the disability amount cannot be claimed).
See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
See the CRA's general income tax guide:
Line 21400 - Child care expenses
Name of the daycare, camp, boarding school or babysitter.
See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
See the CRA's general income tax guide:
Line 21400 - Child care expenses
Address of the daycare, camp, boarding school or babysitter.
See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
See the CRA's general income tax guide:
Line 21400 - Child care expenses
Enter the SIN of the person of the person who provided the child-care services.
This information is reported on federal For T778 - Refundable tax credit for child care expenses, and on schedule C of the Quebec income tax return.
See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
See the CRA's general income tax guide:
Line 21400 - Child care expenses
Enter the identification number of the organization that received the child care expense payment.
This information is required on schedule C of the Quebec income tax return.
See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
See the CRA's general income tax guide:
Line 21400 - Child care expenses
Enter the number of weeks that the higher earner is eligible to claim the child care deduction. For Quebec income tax purposes, it determines the limit applicable to the person with the higher earned income. This keyword should be entered in the file of the taxpayer for whom you want to claim the child care expenses (usually in the higher income earner's file).
The following options are applicable for the keyword Child-Weeks.
Lower earner attended school part-time Select this option if the other supporter is the lower earner, is attending school on a part-time basis and your child care expenses for purposes of the tax credit are limited by your net income (federal).
For 1998 and subsequent years, child care expenses are also allowed for part-time attendance at school. The student must be enrolled at an educational institution in Canada in an eligible program lasting at least three consecutive weeks, and involving a minimum of 12 hours of courses each month.
DT Max will complete part D of form T778. The student will be eligible to claim child care expenses for each month at school part-time, not exceeding $200/month for each child under age 7 and $125/month for each child from age 7 to 16.
For Quebec tax purposes, the maximums remain at $200/month and $125/month respectively.
Lower earner attended school full-time Select this option if the other supporter is the lower earner, is attending school on a full-time basis and your child care expenses for purposes of the tax credit are limited by your net income (federal).
DT Max will fill out part D of form T778. For each month of attending school full-time in 2023, the student will be eligible to claim child care expenses for up to $200/week for each child under age 7 and up to $125/week for each child from age 7 to 16.
For Quebec tax purposes, the maximums remain at $200/week and $125/week respectively.
Lower earner was temporarily infirm
Lower earner was indefinitely infirm
Lower earner was in prison
Separated in the year for at least 90 days
Actively carrying on business Use this option if you were actively carrying on a business. Note that only the Quebec government adopted that rule. Therefore, a schedule C must be produced but the federal T778 form is not required.
Was the only supporter & at school full-time Select this option if you are the sole supporter of your child, you are attending school on a full-time basis and your child care expenses for purposes of the tax credit are limited by your net income (federal).
DT Max will fill out part D of form T778. For each month of attending school full-time in 2023, the student may claim child care expenses for up to $200/week for each child under age 7 and up to $125/week for each child from age 7 to 16.
For Quebec tax purposes, the maximums remain at $200/week and $125/week respectively.
Was the only supporter & at school part-time Select this option if you are the sole supporter of your child, you are attending school on a part-time basis and your child care expenses for purposes of the tax credit are limited by your net income (federal).
For 1998 and subsequent years, child care expenses are also allowed for part-time attendance at school. The student must be enrolled at an educational institution in Canada in an eligible program lasting at least three consecutive weeks and involving a minimum of 12 hours of courses each month.
DT Max will complete part D of form T778. The student will be eligible to claim child care expenses for each month at school part-time, not exceeding $200/month for each child under age 7 and $125/month for each child from age 7 to 16.
For Quebec tax purposes, the maximums remain at $200/month and $125/month respectively.
You & other supporting pers. - school full-time
You & other supporting pers. - school part-time
Spouse died - Claim the child care expenses Use this option if the spouse died in 2023 and you want the taxpayer to be considered the only person supporting the eligible child.
When completing the return of a person who died in 2023, claim eligible child care expenses that were paid while that person was living with the child as if he or she was the only person supporting the child. However, if there was another person, that person is also considered the only person supporting the eligible child and can claim eligible child care expenses paid while living with the child, as long as the expenses were not claimed on the return of another person.
Spouse non-resident - Claim the child care expenses
Was actively seeking for a job (Quebec)
See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 21400 - Child care expenses (T778)
See the CRA's general income tax guide:
Line 21400 - Child care expenses
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