Child Care Expenses Deduction: After-School & Camp Fees

Quick Answer

Why the receipts in your drawer are worth more than you think

It is early November, the fall calendar is in full swing, and somewhere in your kitchen there is a growing pile of paperwork: a receipt from the after-school program at the community centre, an invoice from July's week of day camp, and a line item from the March Break coding camp you had almost forgotten about. On a busy weeknight, these look like clutter.

They are not clutter. They are, in many cases, worth hundreds or even thousands of dollars at tax time. The Canada Revenue Agency allows most working parents to deduct eligible child care expenses from their taxable income. In Ontario, a second provincial credit can sit on top of the same receipts.

The rules are easier to work with than they look, and the next few sections walk through them step by step so you can file with confidence next spring.

Quick start: pick your path

What the CRA actually counts as child care

Under Section 63 of the Income Tax Act, “child care expense” has a specific meaning. The payment must be made to allow the parent (or supporting person) to do one of the listed activities, and it must relate to a qualifying child.

Programs that typically qualify include licensed daycare and nursery school, registered after-school programs run by schools, community centres, or private providers, day camps and sports day camps, overnight camps and boarding schools (with weekly caps), and in-home caregivers such as nannies and babysitters.

Programs that typically do not qualify include tuition for regular school instruction, medical or hospital care, clothing and transportation to and from the activity, and recreational lessons where the main purpose is skill development rather than care. For a wider view of family-related CRA benefits that intersect with this deduction, see our Canada Child Benefit 2026 update.

How much you can claim per child in 2026

• →Children under 7 years old at the end of the year — limit generally $8,000 per child.
• →Children aged 7 through 16 at some point in the year — limit generally $5,000 per child.
• →Children eligible for the Disability Tax Credit (any age under 18) — limit generally $11,000 per child.

The second ceiling is the earned income test. The deduction cannot exceed two-thirds of the earned income of the spouse or partner with the lower net income. For a parent earning $60,000, that ceiling is roughly $40,000 — well above most families' actual spending, but a real constraint for part-time workers and parents on parental leave. For the broader personal numbers that interact with this, see our overview of Ontario tax amounts for 2026.

Day camp vs overnight camp vs after-school program

Parents often ask whether a week at sleepaway camp is treated the same as the daily after-school program at the local community centre. The short answer is no — the CRA applies different caps and different documentation rules to each.

Day camps and after-school programs count against the annual per-child cap, with no weekly ceiling. Overnight camps and boarding schools have a separate weekly maximum. Individual caregivers must provide their Social Insurance Number on the receipt; organizations use their business number. Paying cash with no documentation generally disqualifies the expense.

Which parent claims it — and why that matters

Suppose a Toronto couple has two children, aged 5 and 9, in licensed after-school care and summer day camp. They paid $9,400 in eligible fees for the year. One parent earned $95,000; the other earned $62,000. The lower-income spouse claims the deduction — so $9,400 is deducted from the $62,000 income, not the $95,000.

This rule exists because the deduction recognizes that child care is a cost of earning the second income in a two-earner household. For wider reading on family-focused tax topics, our family tax articles hub keeps everything in one place.

Step-by-step: how to claim it on your T1 return

Working through the claim in order prevents most of the common filing errors.

1. 1
   Gather every receipt from January 1 to December 31.Daycare, after-school care, day camps, overnight camps, nanny invoices, and before-school programs all belong in the same pile.
2. 2
   Verify receipt completeness.Each receipt should show provider name and address, amount paid, dates of service, child's name, and either the caregiver's Social Insurance Number or the organization's business number.
3. 3
   Download Form T778.Walk through Part A to confirm eligibility and Part B to calculate the deduction.
4. 4
   Calculate the lowest of the three limits.Compare actual eligible expenses, the annual per-child cap combined across all children, and two-thirds of the lower-income spouse's earned income.
5. 5
   Enter the final figure on Line 21400 of the T1 return.The deduction reduces net income, which also affects benefits such as the Canada Child Benefit and the GST/HST credit.
6. 6
   Keep records for at least six years.Retain the receipts, the completed T778, and supporting records in case the CRA requests them during a review.

If this is the first year you are claiming the deduction, or if you went through a separation during the year, having a professional handle the calculation often prevents reassessments. Our personal tax filing services cover the full workflow.

Ontario's bonus: stacking the CARE tax credit

The CARE top-up rate is highest at modest incomes and declines as household income climbs. Families with higher adjusted incomes generally receive a smaller percentage or no CARE credit at all.

Because CARE is calculated from the federal deduction figure, filing Form T778 correctly matters twice: once for the federal line and once for the provincial credit on Schedule ON479-A. For related reading, see our overview of other Ontario credits.

Common mistakes that cost parents the deduction

• →Paying cash to a caregiver with no receipt and no Social Insurance Number. Without documentation, the CRA will typically deny the entire amount on review.
• →Claiming the deduction on the higher-income spouse's return when the lower-income spouse should have claimed it.
• →Including non-eligible charges such as school tuition, uniforms, meals billed separately, or transportation.
• →Forgetting to apply the weekly cap on overnight camp fees, which can lead to an overclaim and a correction letter.
• →Missing the childcare portion of a private school's bill where before-school and after-school care are itemized separately.
• →Discarding receipts after filing; the CRA can review returns up to six years back.
• →Overlooking the Ontario CARE credit on Schedule ON479-A, which leaves provincial money on the table.

Frequently asked questions

Sources & References

• →Canada Revenue Agency — Line 21400 Child care expenses. canada.ca
• →Canada Revenue Agency — Form T778 (Child Care Expenses Deduction for 2026). canada.ca
• →CRA Income Tax Folio S1-F3-C1, Child Care Expense Deduction. canada.ca
• →Government of Ontario — CARE tax credit. ontario.ca
• →Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), Section 63. justice.gc.ca
• →Canada Revenue Agency — Keeping records. canada.ca