What expenses are deductible for child care costs?

Child care expenses are claimable by Canadian residents for services provided in Canada, although deemed residents living abroad qualify as well.  

The following are expenses that may be claimed:

• babysitting costs;
• daycare costs;
• costs of a live-in nanny; which may include advertising, salary and benefits including the employer’s portion of CPP and EI;
• lodging paid at boarding schools, day camps, overnight sports school and overnight camps to a maximum of:
  • $100 per week for each child age seven to sixteen for which the Disability Amount cannot be claimed; plus
  • $175 per week per child under seven for which the disability amount cannot be claimed; plus
  • $250 per week for each disabled child.

The following may not be claimed as child care:

• medical or hospital care;
• clothing, transportation;
• tuition fees;
• board and lodging expenses except when they are included in the total charges for a boarding school, day camp or overnight sports school and do not exceed the weekly limits; and
• expenses which were not actually paid or which were or will be reimbursed.

More information on child care expense claims can be found in Jacks on Tax: Your Do-It-Yourself Guide to Filing Taxes Online.