Can I deduct child care expenses on my Ontario tax return?

Yes — child care expenses are deductible on your federal T1 return, which also covers Ontario provincial tax. The deduction reduces your net income, lowering both federal and Ontario tax. Eligible expenses include daycare, nursery school, after-school care, day camps, and overnight camps (subject to limits), as well as amounts paid for a nanny or babysitter who has a Social Insurance Number.

The deduction must generally be claimed by the lower-income spouse or common-law partner, not the higher earner. There are exceptions when the lower-income partner is in school, incarcerated, or incapacitated. The amount you can deduct is limited to the lesser of your actual expenses, two-thirds of the lower-income earner's earned income, or a per-child limit based on the child's age and whether the child has a disability.

To support your claim, you should retain receipts from the care provider, including their SIN if they are an individual caregiver. The CRA may ask for this information. School-based tuition fees are generally not eligible unless the program is primarily child care. Eligible programs under Ontario's CWELCC (the federal-provincial subsidized childcare program) still count if you paid an out-of-pocket portion.