What Summer Childcare Expenses Are Tax Deductible?

Eligible Child Care Expenses: Daycares and Professional Providers

The CRA allows you to deduct the cost of licensed daycare centers, nursery schools, and in-home daycare on your tax return. If you’re paying a licensed organization, ensure that your receipts include the organization’s name, address, and service details.

For individual caregivers such as babysitters, the receipt must include their Social Insurance Number (SIN) along with their address. The receipt can be in your name or your spouse's name, regardless of who claims the expense on your tax return.

Can You Deduct Summer Camp Expenses?

Summer camps offer great opportunities for children to explore new activities, and the costs may be deductible if the primary purpose of the camp is childcare.

Typically, this applies to camps for younger children. For instance, a 5-year-old at a day camp would need supervision, making the cost deductible. However, for older kids—like a 15-year-old at a goal-oriented sports camp—the cost may not be considered childcare and thus, not deductible.

For overnight camps, only part of the expense may qualify. The maximum allowable deduction ranges between $125 and $275 per week, depending on the child’s age. If the camp charges $500 per week, only a portion of that cost may be deductible.

Childcare Provided by Family Members

Some families opt to have a relative provide childcare during the summer. While this is often a more convenient and cost-effective solution, the CRA has specific rules about which family members qualify as childcare providers for tax purposes.

If you employ your 17-year-old to babysit your younger child, or if you claim the caregiver credit for a relative who also provides childcare, these expenses may not be eligible for deduction.

Childcare Deduction Limits

In general, the maximum childcare expense deduction depends on the child’s age:

• Under 6 years old: $8,000 per year
• Ages 7 to 16: $5,000 per year
• Children with disabilities: $11,000 per year

The lower-income spouse must typically claim the deduction. Additionally, eligible childcare expenses are capped at two-thirds of net income or $8,000—whichever is lower.

For example, if your net income in 2023 is $21,000, the maximum deduction for childcare expenses would be $8,000:

$21,000 x 0.67 = $14,070
$8,000 (actual childcare expense claimed)

Additional Eligible Childcare Costs You May Overlook

There are some expenses that are often missed when claiming childcare deductions:

• Costs related to placing ads to find a childcare provider.
• Placement agency or mandatory registration fees for daycare or summer camps.
• Childcare costs incurred during temporary leaves from work (e.g., maternity leave) may still be eligible for other children’s care.

Takeaway

Before sending your children to summer camps or daycare, be aware of the tax implications so you can fully benefit from the available deductions. By understanding the rules and claiming eligible expenses, you can save on taxes while ensuring your children have a great summer.

Key Takeaways



• If the main purpose of a summer camp is childcare, the cost can often be deducted on your tax return.
• Payments made to certain relatives for childcare may not qualify for deductions, depending on the age of the provider and whether other credits are claimed.
• Deductible childcare expenses are generally capped at two-thirds of net income, with a maximum of $8,000.