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Child Care Expenses (T778)

Updated: 2023-03-14

  1. Enter child care expenses on the DepEx worksheet or directly on the T778 federal form. They share a table of the expenses.
  2. TaxCycle determines whether the expenses are eligible based on the age of the child and the limits to the expenses.
  3. TaxCycle also automatically claims the expenses of the lower-income spouse return.
  4. If both spouses have the same net income, TaxCycle optimizes the claim to determine which spouse will get the claim. You can view this choice in Part B of the T778 and also on the DepEx worksheet. 
  5. If the taxpayer and spouse's situation allows them to claim child care expenses on the higher-income spouse's return, check the appropriate box in Part C of the T778.
  6. If the principal taxpayer or spouse was enrolled in a post-secondary institution, enter the required information in Part D of the T778.

Screen Capture: T778 and DepEx for child care expenses