Claiming child care expenses (special cases)
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Claiming child care expenses (special cases)
Pre-test question
Sorry, that's incorrect
The spouse with the lower net income must claim the deduction for child care expenses, unless there exists a special situation as described on Form T778, Child Care Expenses Deduction.
That's correct
The spouse with the lower net income must claim the deduction for child care expenses, unless there exists a special situation as described on Form T778, Child Care Expenses Deduction.
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to the Takeaway points
Background information
Situation
Ryan lives with his wife Jessica and their two children, Jace and Jackie. Although Ryan worked full time at the beginning of the year, he was hospitalized on February 20, 2024 and was not discharged until August 28, 2024. He soon returned to work part time while his wife continued to work full time as a grocery store manager. Jessica also received Advanced Canada workers benefit payments. During this time, their two children attended daycare.
Identification information
| Name | Ryan Samson |
|---|---|
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth (DOB) | November 15, 1983 |
| Marital status |
Married to: |
| Number of children (2) |
Son: Jace Samson |
Required slips
T4 – Statement of Remuneration Paid (For Ryan)
T4 – Statement of Remuneration Paid
Protected B
Employer's name: Paint colours Inc.
Employee's name and address:
Last name: Samson
First name: Ryan
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 16,000.00
Box 16: Employee's CPP contributions - see over: 150.00
Box 18: Employee's EI premiums: 190.00
Box 22: Income tax deducted: 900.00
Box 24: EI insurable earnings: 16,000.00
Box 26: CPP/QPP pensionable earnings: 16,000.00
Box 45: Employer-offered dental benefits: 3
T4 – Statement of Remuneration Paid (For Jessica)
T4 – Statement of Remuneration Paid
Protected B
Employer's name: Smart produce Inc.
Employee's name and address:
Last name: Samson
First name: Jessica
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 34,000.00
Box 16: Employee's CPP contributions – see over: 200.00
Box 18: Employee's EI premiums: 230.00
Box 22: Income tax deducted: 1,800.00
Box 24: EI insurable earnings: 34,000.00
Box 26: CPP/QPP pensionable earnings: 34,000.00
Box 45: Employer-offered dental benefits: 3
RC210 – Advanced Canada workers benefit (ACWB) statement (For Jessica)
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Samson, Jessica
123 Main Street
City, Province X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00
Over the Rainbow Daycare receipt
Over the Rainbow Daycare receipt
123 First St
City, Province X0X 0X0
Tel no.:476-123-4567
Business no.: 11111111RT0001
January 25, 2025
To whom it may concern:
Ryan Samson and Jessica Samson paid the following amount in 2024 for child care services for their children:
Jace Samson (son)= $2,500.00
Jackie Samson (daughter)= $2,500.00
The child care fees mentioned above are for the period of January 2024 to December 2024.
Please contact me if you have any questions.
Sincerely,
Rebecca Smith
Program Supervisor
Review your results
Solution to Claiming child care expenses (special cases).
Takeaway points
Steps to follow
- Review their background information and required slips
- Click add spouse next to the Family Head (Ryan Samson) tab
- Click T4 and employment income in the left-side menu, then click the + sign next to T4 income (earned in any province except Quebec) and enter the required information for each individual
- Click Other information slips in the left-side menu, then click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500] to enter the information from the tax slip
- Click add dependant next to the Jessica Samson tab to add each dependant
- In the profile of each child, click on Dependant ID in the left-side menu and complete the Dependant Identification section for each child
- Click Child care in the left-side menu of each dependant’s profile, then click the + sign next to the type of child care expenses to enter the amount paid for that child
- Using the profile for the individual with the higher net income, click Interview setup in the left-side menu, then tick the box next to Child care (special cases) in the Parents and children section
- Click Child care (special cases) from the left-side menu, then click the + sign next to A special situation allows you to claim child care expenses even though your earnings are higher than your spouse’s
- Enter the number of weeks during the year when any of the special cases listed applied to their situation
The tax software calculates how much of the child care expenses may be claimed on the tax return for the individual with the higher net income. If any remaining amounts may be claimed on the tax return for the individual with the lower net income, the tax software automatically claims them based on the information provided.
When no special situation applies, the tax software automatically determines which individual claims the deduction.
Although Jessica has the higher net income, she claims the full amount of the child care deduction since Ryan was temporarily hospitalized.
For more information, refer to UFile instructions.
Page details
- Date modified:
- 2024-12-20