How to Claim Childcare Receipts Properly

Childcare is one of the biggest expenses for Canadian families—and claiming it properly can reduce your taxes and increase your refund. But many parents make mistakes when collecting receipts, choosing the wrong spouse to claim them, or misunderstanding what counts.

Here’s a clear, simple guide to help you claim childcare receipts correctly and stay fully compliant with CRA rules.

1. What Counts as Childcare Expenses?

The CRA allows you to claim childcare costs if they enable you (or your spouse) to:

• Work

• Run a business

• Attend school

• Do research

Eligible childcare providers include:

• Licensed daycare centres

• Home daycare providers

• Nannies and babysitters

• Nurseries and preschools

• Before/after-school programs

• Day camps and summer camps

• Overnight camps (limits apply)

These receipts must show that you paid for supervision, not education or tutoring.

2. What Must Be on a Proper Childcare Receipt?

The CRA requires specific information. A valid childcare receipt must include:

• Full name of the daycare/provider

• Address

• Provider’s SIN or business number

• Name of the parent who paid

• Name of the child

• Amount paid

• Dates the care was provided

• Signature (for individuals like babysitters)

If any of this is missing, the CRA may deny the claim.

Important:

If you pay a babysitter or individual provider, you must collect their SIN. The CRA requires it for you to claim the deduction.

3. Who Should Claim the Childcare Expenses?

The lower-income spouse must claim the childcare deduction—even if the higher-income spouse paid the bill.

This is one of the most common mistakes families make.

Exceptions where the higher-income spouse can claim:

• Lower-income spouse was attending school

• Lower-income spouse had a disability

• Lower-income spouse was in prison

• You were separated for part of the year

If none of these apply, the lower-income spouse must claim it.

4. How Much Can You Claim?

The CRA sets annual limits:

• $8,000 per child under 7

• $5,000 per child aged 7–16

• $11,000 per child eligible for the Disability Tax Credit

• $5,000 for overnight camp (per child)

You can claim the lowest of:

• Your actual childcare expenses

• Your CRA limit

• 2/3 of the lower-income spouse’s earned income

5. What the CRA Does Not Accept as Childcare

You cannot claim:

• Private school tuition (unless special needs)

• Tutoring or educational programs

• Piano, art, or sports lessons

• Meals, transportation, or field trips

• Payments to a spouse or parent (unless you're 18+ and meet special rules)

Only supervision counts—not education.

6. Keep Records All Year (Not Just at Tax Time)

To avoid CRA issues, keep:

• Monthly receipts

• E-transfers and bank statements

• Contracts with caregivers

• Proof of payments (e.g., email confirmations)

• SIN numbers for home-based providers

The CRA can ask for receipts up to 6 years later, so keep everything organized.

7. Common Mistakes Parents Should Avoid

Here are errors that lead to CRA audits:

❌ Claiming expenses under the higher-income spouse
❌ Claiming private school fees as childcare
❌ Not collecting the provider’s SIN
❌ Paying cash with no receipt
❌ Claiming full-year daycare when the child started mid-year
❌ Mixing educational fees with childcare fees

Fixing these mistakes early prevents reassessments or interest charges.

8. Final Tips to Maximize Your Refund

• Ask your daycare or nanny for a year-end receipt

• Review receipts before filing—check for missing information

• If both parents work, childcare deductions often increase CCB payments

• Use childcare expenses to bring your taxable income lower

• If unsure, let a tax professional calculate your best filing strategy