Form T778 calculates the child care expenses you can deduct on line 21400 of your Canadian tax return. If you lived with the child's other parent or your spouse or common-law partner, it's usually the person with the lower net income who must claim, and the deduction is capped by a per-child limit and by two-thirds of that person's earned income.
Everything below comes from the CRA's Form T778 E (25) for the 2025 tax year and the line 21400 page, as of October 2026.
Who claims: the lower-income rule
If you're the only person supporting the eligible child, you claim the expenses you paid while the child lived with you, filling in parts A and B (and Part D if it applies). But if you lived at any time in 2025, and at any time in the first 60 days of 2026, with the child's other parent, your spouse or common-law partner (if you're the child's parent), or someone claiming certain credits for the child, the person with the lower net income, including zero income, must complete the form.
This is the rule that surprises couples: the deduction usually goes on the lower earner's return, even if the higher earner paid the bills. The higher earner can only claim in the situations in Part C, such as the lower earner being in school, unable to care for children because of an infirmity confirmed by a doctor or nurse practitioner, or in prison for at least two weeks, or a separation of at least 90 days with a reconciliation in the first 60 days of 2026. Even then, both of you fill out a separate T778.
The 2025 limits per child
| Eligible child | Annual limit | Boarding school or overnight camp, per week |
|---|---|---|
| Born in 2019 or later, disability amount can't be claimed | $8,000 | $200 |
| Disability amount can be claimed (any age) | $11,000 | $275 |
| Born 2009 to 2018, or older with an infirmity and no disability amount | $5,000 | $125 |
The deduction on line 7 is the least of three amounts: the total of those limits for your children, the expenses you paid, and two-thirds of your earned income. An eligible child is your or your spouse's or partner's child, or a dependent child whose 2025 net income was $16,129 or less, who was under 16 at some time in the year (the age limit doesn't apply with an infirmity).
What you can and can't claim
| You can claim | You can't claim |
|---|---|
| Caregivers providing child care | Medical or hospital care, clothing or transportation |
| Day nursery schools and daycare centres | Tuition for a regular school program or a sports study program |
| The child care part of an educational institution's fees | Leisure activities, such as tennis lessons or Scouts registration |
| Day camps and day sports schools whose main goal is caring for children | Amounts you were, or are entitled to be, reimbursed for |
| Boarding schools and overnight camps, up to the weekly limits | Payments to the child's parent, your partner or a related person under 18 |
The CRA notes the list of allowable expenses isn't complete; Income Tax Folio S1-F3-C1 has the full rules. If you paid someone to look after your child in your home, the CPP contributions and EI premiums you paid as their employer also count as child care expenses. Payments to a related person under 18 don't qualify, but nieces, nephews, aunts and uncles aren't counted as related for this rule.
Earned income and the two-thirds cap
Earned income here includes employment income, tips, net self-employment income (no losses), the taxable part of scholarships and research grants, CPP or QPP disability benefits and some government earnings supplements. If you're self-employed, your net income from Form T2125 is what counts. Part D can raise the claim if you were enrolled in an educational program lasting at least three consecutive weeks.
Special situations
- On the return of someone who died in 2025, you can claim expenses paid while they lived with the child as if they were the only person supporting the child.
- If you lived outside Canada but the CRA treats you as a factual or deemed resident, you can claim child care paid to a non-resident for services outside Canada.
- If you immigrated or emigrated in 2025, you can claim for the period you were in Canada.
- If your employer paid child care for you, you can claim the part included in your income.
- Quebec residents can also claim the basic contribution paid directly to a subsidized childcare provider.
Receipts and filing
- Get a receipt from each organization or person you paid. For an individual, you need their social insurance number.
- Fill in Part A for every eligible child, even those you didn't pay for.
- Work out the basic limit in Part B, then Part C or D if they apply.
- Enter the result on line 21400 of your return.
- If you file online, keep the documents in case the CRA asks; on paper, attach T778 but not the receipts.
The verdict
Run the T778 numbers on the lower earner's return first, because that's where the claim usually belongs, and only move it to the higher earner if a Part C situation applies. A bigger deduction lowers tax at source too: if you claim it every year, the T1213 request can reduce the tax taken off your pay, alongside your TD1.
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Frequently asked questions
What is Form T778?
It's the CRA form for calculating the child care expenses deduction you claim on line 21400 of your tax return.
Who should claim child care expenses in Canada?
Usually the person with the lower net income, if you lived with the child's other parent or your spouse or common-law partner. The higher earner can claim only in the Part C situations.
What is the maximum child care deduction for 2025?
$8,000 per child born in 2019 or later, $11,000 for a child eligible for the disability amount and $5,000 for a child born 2009 to 2018, limited to two-thirds of earned income.
Can I claim summer camp on T778?
Day camps whose main goal is caring for children qualify. Overnight camps are limited to $200, $275 or $125 per week depending on the child.
Do I need a receipt for child care expenses?
Yes. The person or organization you paid must give you a receipt, and for an individual you need their social insurance number.
