Can Daycare and Child Care Costs Be Added to Child Support in Ontario?

For many working parents, daycare, before-and-after-school care or a summer program is one of the biggest monthly costs after housing. When you are separated, it is fair to ask whether the other parent should help pay, and whether it is included in the support you receive.

In general, it is a separate amount from the basic table support. This article explains when child care counts, how the cost is shared, what the net-cost rule means, and what to prepare.

Is child care part of basic child support?

No. The Guidelines let the court, on either spouse's request, provide for an amount to cover all or any portion of listed special or extraordinary expenses. The list includes child care expenses incurred because of employment, illness, disability or education. These are on top of the basic table amount.

Justice Canada's guide adds that these expenses count where the child lives mainly with the claiming parent and the cost arises from a job, illness, disability or educational requirements for employment. A cost that exists only for convenience, rather than one of these reasons, may not qualify.

How the cost is shared

Special or extraordinary expenses are shared by the spouses in proportion to their respective incomes, after deducting any contribution from the child. The default split in Justice Canada's guide is also in proportion to incomes.

Justice Canada's example shows the method. The parent earning $80,000 of a combined $155,000 paid about $516.13 per month toward a $12,000 yearly special expense, in addition to a $765 basic table amount. A child care bill would be handled the same way: find each parent's share of combined income, then apply it to the cost.

The share is based on the cost that is left after the adjustments in the next section, not necessarily the amount on the invoice.

The net-cost rule and tax deductions

The court must take into account any subsidies, benefits or income tax deductions or credits relating to the expense. This is the source of the 'net cost' approach to child care. If a subsidy lowers what you pay, or a tax deduction or credit reduces the real cost, the amount being shared can be lower than the daycare invoice.

The court also disregards any universal child care benefit. That means the benefit is not treated as reducing the expense for this purpose.

Which tax deductions or credits you can claim, and which parent can claim them, depends on your circumstances. An accountant can confirm this for you.

What can change the amount

Child care needs change. A child who starts school full time may need less care, or a parent may lose a job. A change in circumstances that would result in a different child support order allows variation. Only a court can change the amount of support, and the Family Responsibility Office says it cannot change what a payor pays.

If you are the payor and your costs or income change, do not simply reduce your payments. The Family Responsibility Office tells payors to keep paying until it says in writing they can stop. If you have missed payments, contact the office right away, since a voluntary arrears payment schedule can be worked out.

If the children spend close to equal time with each parent, the court must also consider the increased costs of shared parenting time when each parent has at least 40% of the time over a year. A lawyer can explain how that interacts with child care costs in your case.

What to do next

Start by pulling together proof of what you pay and why you pay it. If your order or agreement does not already address child care, a lawyer can help you decide whether to ask the other parent to agree in writing or to apply to the court.

• Gather daycare, after-school care or camp invoices and proof of payment.
• Keep receipts, which are required to claim special expenses through the Family Responsibility Office.
• Show how the care is tied to your job, illness, disability or education.
• Note any subsidies, benefits or tax credits you receive.
• Collect both parents' recent income information.
• Read your current order or agreement to see what it says about child care.

Frequently asked questions