What if my child care expenses exceed my income?

If your child care expenses exceed your income, you cannot claim a deduction for the excess amount.

Can I claim expenses for child care services provided by a family member?

You can claim expenses for services provided by a family member, but the family member must not be under 18 years of age and not claimed as a dependent.

T778 Child Care Expenses Deduction Form

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What is the CRA T778 Form

The CRA T778 Form is a document provided by the Canada Revenue Agency (CRA) for parents to claim child care expenses. This form is designed to help parents reduce their taxable income by deducting the cost of child care, making it easier to balance work and family responsibilities.

Who is Eligible for Child Care Expenses Deduction

Parents who have children under the age of 16.
Parents whose children have mental or physical impairments, regardless of their age.
Parents who paid for child care services to enable them to work, carry on a business, or attend school.

How to Fill Out the CRA T778 Form

Download the CRA T778 form from the official CRA website.
Fill out Part A with the child's information.
Complete Part B with the details of the child care provider.
Enter the child care expenses in Part C.
Sign and date the form at the bottom.

How to Calculate the Deduction Amount

Subtract the total child care expenses from your total income. If the result is a positive number, this is the amount you can deduct. Use the following table as a reference:

Your Income	Child Care Expenses	Deduction Amount
$50,000	$10,000	$40,000
$75,000	$15,000	$60,000

Common Mistakes to Avoid when Filling T778 Form

Not accurately reporting your child care expenses. Failing to include the child care provider's information. Not signing and dating the form. How to Submit the T778 Form to CRA? Once you have completed the T778 form, you can submit it electronically through the CRA's MyAccount portal or mail it directly to the CRA.

Form Versions

2023 Fillable T778 Form for 2023 tax year Fill Out Form

FAQ:

What if my child care expenses exceed my income?

If your child care expenses exceed your income, you cannot claim a deduction for the excess amount.
Can I claim expenses for child care services provided by a family member?

You can claim expenses for services provided by a family member, but the family member must not be under 18 years of age and not claimed as a dependent.

Fillable T778 Child Care Expenses Deduction for 2020